To Running Clubs Seeking an Alternative Source of Insurance
and Non-profit Status
The recent raising of the dues and insurance costs by the RRCA Board of Directors has forced many club and event boards to agonize over their relationship with the RRCA. Individuals including many long-time RRCA supporters and past presidents and other Board members have also agonized over what to do next. Unfortunately, we do not have the luxury of time. Many clubs need to make decisions within the next few weeks.

If you have been reading the postings on the RRCA Information Webpage at www.huntsvilletrackclub.org/RRCAForum/info.html you are aware that we have made every possible effort to correct the problem without success. A number of clubs have been discussing and some have been searching for an alternative source for insurance and non-profit status. We have found an affordable source for insurance and non-profit status for those clubs that feel they have been put in a difficult financial situation or have concerns about continuing on the present course.

The basic details are outlined below. The process is ongoing and more details and the option to join will be available in about a week, definitely prior to the end of the year. A contact is provided at the end of this letter. Those interested should respond as soon as possible, but prior to December 20 in order to be included in the initial organization's membership. More detailed information, and insurance and membership forms will be provided upon your response. The new organization's name is American Association of Running Clubs (AARC). The initial goal is to provide clubs with a source of participant liability and directors and officers insurance, and non-profit status under a group exemption from the IRS. An interim board will get this underway and then convene a membership meeting in the Spring at which time the interim Board will step aside and members will elect the Board of their choosing. Member clubs will decide the future direction of the organization and if and what other programs and services beyond the insurance and non-profit status are desired and if so how to fund them. Initial dues are a modest administrative fee to cover organization and legal costs to get this organization running and functioning. We have structured the organization so that costs will be affordable for both small and large running organizations.

Articles of Incorporation have been filed. Basic bylaws and other data necessary to file with the IRS for non-profit status are being developed by the initial Board and other interested club representatives. We should again emphasize the initial organizers are trying to provide a requested service within a tight time frame and then will step aside so that the permanent membership can operate and elect their representatives and set future policies. The IRS filing for a 501(c)(3) non-profit status will include an umbrella for member clubs that request to be included. While it will require several months to process the filing through the IRS, the effective date for non-profit status is retroactive to the date of incorporation.

The initial fees for running clubs are as follows: Liability/Medical Insurance will be $2.11 per household membership with a minimum charge of $100;
Director and Officer Insurance will be $150 per club;
Administrative fee (dues) of $0.60 per household membership with a minimum charge of $50.

Some notes about insurance and dues:
Insurance and dues for event clubs and running clubs with more than 2500 members will be negotiated.
The term "household membership" includes individual and family memberships and is 60 cents with no additional cost for family dependents.
The insurance costs to you are the exact costs to AARC. There is no administrative fee included in the $2.11 insurance fee.
There are two fairly insignificant differences in the insurance we are offering. Liability and D&O are the same. We dropped Accidental Death and Dismemberment which was covered to $2500. The second difference is that we are taking a $500 deductible on the $25,000 medical portion of the liability.
For those clubs in jurisdictions requiring higher limits we WILL be able to negotiate higher limits with the insurance company for you. The general liability in the base insurance is one million occurrence and two million aggregate per member club. Coverage will be through Virginia Surety Insurance (A rated). Liability for all club functions such as club picnics, banquets, etc. will be covered. D&O is underwritten by Fireman's Fund insurance and will tentatively be for $500,000.

While the $2.11 is higher than clubs are currently paying, the cost of insurance to most individual clubs would be far in excess of this. In addition the dues requirement is less and is based on households only. The AARC insurance fee reflects 2003 market rates and not that of a contract locked in a few years ago. However, once we have a claim record our costs will moderate while other organizations will likely see their costs rising as old contacts expire and new ones are negotiated. For a new organization it was also necessary to use a conservative number for our initial group insurance quote.

Our intent is not to be an insurance agent, but we are motivated by a need that many clubs have expressed and we are offering an alternative in response to that need. Please bear in mind that this organization (AARC) is in response to requests. Should the RRCA return to its roots and magnificent historic service to the sport, it would be our pleasure and desire to immediately begin discussions for merging the two organizations. However, in the current climate, many clubs and officials feel their fiduciary responsibility dictates a different course. A business meeting will be called during the Spring of 2003 where member clubs can discuss and vote on desired changes to the initial organization bylaws and set the future direction of what will be YOUR organization. We are just volunteers organizing it and will welcome the opportunity to turn it over to a new set of leaders during the coming year.

Thank you for your interest and we look forward to hearing from you. Please respond to the contact below no later than December 20 and provide club name, your name, email address, phone number, mailing address, and your interest to participate.

American Association of Running Clubs Board of Directors:
Bee Andrews, Board, Tidewater Striders
Anna Berdahl, Board, Credit Union Cherry Blossom
Jeff Darman, Past President, RRCA
Julia Emmons, Executive Director, Atlanta Track Club
Don Kardong, Past President, RRCA
Harold Tinsley, Past President, RRCA

Your contact for additional information and forms is:
Note: This is a temporary contact. AARC administrative office will begin operation in January housed in the Atlanta Track Club office with part time administrator Elizabeth Unislawski. Until then please respond to:

Harold Tinsley
harold.tinsley@gte.net
8811 Edgehill Drive, Huntsville, AL 35802.