TLSC
The Lama Steering Committee
Report to the Llama Assembly '97

Introduction
Importance of Autonomy
Surveys
The Final Report given at Llama Assembly '97
Health and Research
Llama Assembly "Working Together"
Relationships within the Lama Community
Internet Site
Interim Report, March 1996 (If not "merger" then what?)
TLSC Home Page

The following are members of The Lama Steering Committee responsible for developing this report. The organixations they represented and the TLSC sub-committee on which they served are listed

Jack Moore, Independent Chairman

Fred Bauer, Governance
The International Lama Registry

Allan Dewald,
Medical and Alpaca / Llama Relations
Alpaca Owners & Breeder Association

Linda Kyriopoulos, Governance
Rocky Mountain Llama and Alpaca Assoc.

Nelson Leonard, Autonomy
Llama Association of North America

 Kathy McKinney, Finance
The International Lama Registry

Marilyn Milton, Autonomy
Llama Association of North America

Mary Reed, Finance
Alpaca and Llama Show Association

Bob Riley, Governance
Rocky Mountain Llama and Alpaca Assoc.

Tony Rollins, Finance
Alpaca and Llama Show Association

Jodi Robinson, Finance
Alpaca and Llama Show Association

The Lama Steering Committee wishes to thank the following individuals who attended our meetings and contributed to the Final Report:Sandy Chapman: ILA, Myrna Fletcher: Oklahoma Llama Assc., Lori Jeter: Iowa Llama Assc., Vern Lillies: CLA, Don Keller: CAL-ILA, John Mack, Dick Sheehan: WILA

INTRODUCTION

Perhaps no other concept in the history of the lama community has produced such an opposite effect as the term UNIFICATION. The Lama Steering Committee (TLSC) feels this is because unification has become synonymous with "merger" . . . merger without the consent and cooperation of those affected accompanied by the perceived loss of their identity.

For this reason this committee replaced the word "unification" in its name in an attempt to signify a new direction of respect for all lama organizations and their members.

The Lama Steering Committee acknowledges the hard work and good intention of the Lama Strategic Planning Group and the Unification Working Group. The Lama Steering Committee has modified their proposals only to the extent necessary for it to become potentially acceptable to the majority of lama organizations.

The Lama Steering Committee expanded the concept and scope of unification from three major organizations to any organization wishing to move forward . . . together!

Recognizing years of service in dealing with governmental and health issues affecting the lama and its owner, the Steering Committee's proposal enables the International Llama Association to continue in its established role of leadership in dealing with government issues with funding provided by the lama community through the National Lama Trust Fund proposed in this document. The TLSC intends that the Lama Trust Fund would reimburse the ILA for expenses incurred in dealing with the issues of governmental relations and lama health and welfare.

The Lama Steering Committee comes to Llama Assembly '97 with a proposal that it feels captures the intent of the UWG's stated mission. It has received support from representatives of the Board of Directors of ALSA, AOBA, ILR, LANA and RMLA.

 

Hopefully, this marks a new spirit of cooperation
between all lama organizations.

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Importance of Autonomy
Unity when Needed . . . Diversity the Rest of the Time.

The lama industry needs to present a unified front to adequately address national and international issues. However, it is clear from membership surveys that the majority of lama owners wish to preserve the autonomy of existing organizations.

At Llama Assembly '94 the Lama Strategic Planning Group was formed. They were asked by the assembly to think strategically about the long-term future of the lama community and to develop a written plan, then communicate that plan to the community.

The Lama Strategic Planning Group's mission statement was:

To present a unified front throughout North America in the realm of government issues, research, animal health, marketing and promotion.

Their goals were:

  • Achieve a broad membership base.
  • Have an organization structure reflective of the mission.
  • Develop a stable financial structure.
  • Address issues of widespread interest.

At that point in time, there had been no discussion of autonomy.

The Lama Strategic Planning Group report was presented at Llama Assembly '95. The assembly then formed the Unification Working Group.

This group was charged, according to their own report1, "to propose a method to implement the strategic plan, not to question it."

The UWG Interim Report was published March 1995. This was the first time the issue of autonomy was raised: "We recommend that the major organizations with national scope should be combined into a new organization..." This became a cause of dissension and concern within the industry.

The UWG held several presentations throughout the year discussing their proposed plans. There are, however, no quantitative results available of the proceedings nor the discussions. Reports from those attending the UWG presentations outlined heated discussions by the attendees dealing mostly with the subject of ILR and ALSA autonomy.

Many lama organizations have polled their memberships regarding the issues raised by the UWG draft and final report. The most recent and representative is that of the ILR; members strongly supported the registry remaining independent. It should be noted that when the ILR was formed, there was a conscious effort to give it independence. The ILR, who represents the entire industry, is determined to remain independent.

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Recent surveys taken:

ILR Survey: . . . UWG has proposed the creation of a unified national breed/show association by combining ILA, ALSA, and the Registry. In general, do you support or oppose the Registry remaining independent from any other association in its governance?

Support - 70% Oppose - 20% No Opinion - 10%

Do you support or oppose the specific unification plan presented by the UWG in their Final Report?

Support - 23% Oppose - 46% No Opinion - 31%

ALSA Ballot: Should ALSA retain its Special Interest Affiliation with the International Llama Association (ILA)?

First vote: Yes - 29% No - 71%

Second vote: Yes - 38% No - 62%

The UWG relied on the fact that most national livestock organizations combine the "Breed Association" and Registry function. The important issue is that the lama industry has indicated in definitive terms that it wishes the Registry and other special purpose organizations to remain autonomous. This past year ALSA has voted twice to drop their affiliation with ILA. This is a strong indication of their desire to also remain independent.

This committee feels it necessary that the integrity and diversity of local and regional organizations be maintained. They have grown to what they are today in response to specific needs. In most, if not all cases, these needs still exist. It would however, behoove these organizations to review the reasons for their development, look at the success of the current structure, look for redundancies and make changes accordingly. It should be the responsibility of each individual organization to solve problems within their own group.

Autonomy can be an invitation to redundancy and waste; this can be minimized by organizations maintaining communication by means such as Llama Assembly and the newsletter exchange. It should be noted that the ILA, ILR and ALSA have different functions and that little or no redundancy exists among these organizations.

It is clear from membership surveys and polling such as that sited above that the lama industry, although it recognizes the need for unity in areas of research and government issues, is comfortable with its current structure and wishes existing organizations to remain autonomous.

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FOR YOUR CONSIDERATION . . .
THE LAMA STEERING COMMITTEE FINAL REPORT

All of us in the lama industry benefit from the efforts of the Lama Medical Research Group and ILA's Governmental Relations Committee. Funding for these necessary activities comes from a variety of sources:

Not all lama owners nor organizations participate in these funding activities, and those that do don't contribute on any type of equal basis. These methods worked well in the early development of the lama industry when there were fewer lama owners and organizations, and higher prices of llamas and alpacas allowed generous donations. The lama industry has changed. There are now more lama owners with fewer animals per ranch and more lama organizations with diverse interests whose pursuits are focused more on local events and activities. The funding, and consequently, the determination of where the funds will be spent has become separated from the broader base of lama owners. Also, there are those who feel that attention and funding for the "big picture" issues are beginning to be neglected.

At the last Llama Assembly a committee was created with representatives from the following seven lama organizations: Alpaca and Llama Show Association (ALSA), Alpaca Owners and Breeders Association (AOBA), Canadian Lama Association (CLA), Llama Association of North America (LANA), International Llama Association (ILA), International Llama Registry (ILR), and Rocky Mountain Llama and Alpaca Association (RMLA). This committee named itself "The Lama Steering Committee" (TLSC) and saw as its task the exploration of possible solutions needed for ongoing, reliable, and renewable funding and "grass roots" governance of two critically important issues: Lama Medical Research and Governmental Relations. The committee also chose to address the issues of autonomy, the relationship of the llama and alpaca community and Llama Assembly. Material on these three issues are included in the presentation. The committee has had several telephone conferences and two face-to-face meetings which were funded by the attending organizations themselves.

While this proposal will not include the merger of the three major associations sought by the UWG, it will be a serious attempt to strengthen and increase the level and spirit of cooperation within our community. This Committee wishes to present a proposal that, when implemented, has the potential to improve or resolve at least those areas of concern addressed. It wishes this proposal to be attainable ... something that will not require further study nor the formation of another committee. Something that can be accomplished ... NOW!

The Lama Steering Committee wishes to be a part of the evolution of a united lama community. It feels that this considered approach can be a major step towards that goal. It will require nothing that anyone may not care to give. The proposal will not demand conformity nor require blind obedience. What it will require is a willingness to work together and a spirit that is both positive and supportive of one another.

Premise: The lama industry currently does not allocate sufficient resources to adequately fund medical research and oversee governmental actions at a national level. A Trust Fund needs to be created to fund certain projects affecting the lama industry. That can best be dealt with by all lama owners coming together in a unified effort. Contribution to the fund and administration of the fund should be as broad-based as possible.

We should think of the proposed National Lama Trust Fund as a service organization serving on behalf of and at the direction of all known lama organizations. The only function of the Trust Fund would be to coordinate efforts and resources in the areas of lama research and government issues and provide a secure, permanent, and reliable source of funding.

GOVERNANCE

Monies provided by lama organizations would be deposited in a trust fund earmarked solely for research and governmental issues. The trust fund would be administered by a corporation with a nine member Board of Directors. Five of the Board members would be elected by a congress of lama organizations in geographic regions (regional seats). Those regional districts would be drawn to reflect regional points of view, such as Western, Mountain, Great Lakes, Eastern, and Southern regions. The intent is that each of the regions would have approximately equal numbers of association members. The regional elections would be determined by a congress within the region made up of contributing lama organizations, each carrying a vote equal to their preceding year's total membership. Those running for a seat within a region would be nominated by a participating lama organization. Each lama organization's Board of Directors would cast their votes equal to the number of members in their organization. The candidate receiving the greatest number of votes within the region would be elected to the National Trust Fund Board. The Boards of Directors of ALSA, AOBA, ILA and ILR would each appoint a member to fill the remaining four seats on the Board. This nine member Board would represent the broadest possible representation of the lama community while preserving its many diverse points of view.

THE BOARD

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Is it tax deductable?
TYPE OF ORGANIZATION

The independent accounting firm of Mayer Hoffman McCann, the largest Kansas City and specializing in "not-for-profit corporations," recommendations:

"Based upon your desire to conduct both education and government relations (lobbying) for your members, I would recommend you set up two separate organizations. One organization would be a 501 (c)(5) organization. This entity would handle at least the government relations, as well as any other functions relating to promoting the lama industry. The second entity would be set up as a 501 (c)(3) organization with its primary purpose being education. With this organization being a 501 (c)(3), it could receive deductible charitable donations."

"Please understand that if your only purpose is education and government relations, you could perform both those activities in one 501 (c)(5) organization. The problem with having only one entity is that donors could not make deductible charitable contributions to a 501 (c)(5), but they could if you had a separate 501 (c)(3)."

"If you decided to establish two separate entities, the IRS would allow you to have the same Board of Directors for both entities. However, for accounting purposes, if you had the same Board of Directors, you might have to issue combined financial statements including both entities together."

FUNDING OF NATIONAL TRUST FUND

The Endowment Fund: a permanent fund guaranteeing that only the income from the fund may be used (not the principal) and would receive monies from the following sources:

  • Voluntary contribution by individuals and organizations, including donations from lama breeders, lama organizations, and contributions from auctions and vendors servicing the lama industry.
  • Bequests from estates and wills.
  • A percentage of annual interest income generated by this fund (retained earnings).
  • Excess funds, if any, from the Operating Fund.

The Operating Fund: an annual fund to receive monies from the lama community based on pledges as follows:

1. National organizations, including the registry, show association, and llama and alpaca breeders associations would pledge an amount, based on the prior year's activity or membership.

a. ALSA - would commit to contribute $1.00 per lama exhibited in an ALSA sanctioned show.

b. ILR - would commit to contribute $1.00 per lama registered.

c. AOBA and ILA - would each commit to contribute an amount equaling ILR's donation.

2. Regional and local lama organizations would pledge $2.00 per farm membership (excluding youth members).

3. A percentage of interest income from the Endowment Fund.

4. Individuals and organizations could voluntarily contribute funds in excess of the above for general or specific issues.

The ILR, ALSA and other organizations feel that this funding can be accomplished without raising dues or fees. Contributions would be pledged January 1 of each year and could be paid in a lump sum or spread over quarterly installments. The Operating Fund and Endowment Fund would only invest in low risk, short-term investments. It is the long-term goal that the Endowment Fund would continue to grow and produce sufficient income so that the pledged amounts required within the Operating Fund could be reduced.

COMMITTEES

The Lama Medical Research Group (LMRG) would be appointed by the Board of Directors. It is our recommendation that the current Medical Research Committee remain the same and continue to function in the same highly effective manner as it is currently functioning. In the future, should a member of this committee wish to be retired, the Board will first seek recommendations for a replacement from the committee itself, and secondly from Llama Assembly and the lama community.

Lama Government Relations Task Force, the second committee, would screen and direct legal and governmental relations issues. This committee would be dealing with issues that are clearly of national concern as opposed to local issues. Some of the issues that might be addressed by this committee include interstate and international transportation, as well as restriction of access, such as the current Canyonlands ban. This five member committee would be appointed by the Board, but, just like the LMRG, recommendation would be solicited from diverse sources. Ideally, each member of the committee would be from different lama organizations, and at least one member of this committee should have a legal background. It is recognized that ILA and AOBA have long and respected relationships with certain governmental agencies and it is our intention that these relationships continue. Therefore, AOBA and ILA would each nominate a candidate for one seat each on the committee. In addition, the ILR, a national organization with the largest and most diverse membership, would nominate an additional (third) candidate. Each of the three nominees should be approved by the Trust Fund Board. The last three seats on the committee would be appointed by the Trust Fund Board. The purpose of the committee is to determine whether or not concerns brought before it require action and, if so, what is the priority? The committee would deal with the problem or direct the concern on to a paid professional if a volunteer were unavailable.

DECISION-MAKERS

The elected Board of Directors will make the final decision as to what recommendations made by the committees will be followed. The intention is that the Board appoint the most competent and skilled volunteer members to the committees and then follow their recommendations. The Board of Directors, however, will be held responsible for how the monies are spent and shall be held accountable for the same and report to all participating organizations. The ILA office will be asked to administer these two committees and will be reimbursed for their expenses.

COST TO RUN NEW ORGANIZATION

There remains one more important question to be answered. How much will this cost in overhead? What is the point of creating this organization to collect moneys for research if it all goes to office overhead?

We contacted Hobert Office Services of Estes Park, Colorado to get an estimate of our office expenses. AOBA contracts with the Hoberts for all their office needs. This is called contract labor, and is a nearly identical arrangement that ALSA has for their highly effective and I might add cute General Manager now manning the overheads. The Hoberts manage several other non-lama organizations ranging from home owners associations to clubs. I think their expertise with Alpacas makes them a natural for what we are doing.

Management services for the Association, and Board of Directors.

  • Rent, utilities and general overhead.
  • Office equipment
  • Office supplies
  • Maintain data bases for Membership
  • Do monthly bookkeeping including checking account.
  • Maintain a mailing address.
  • Provide accountant with annual financial data.

This comes to $175.00 per month or $2,100 per year retainer for all those services. This figure is low because we only pay for the services we need. There is no rent, payroll or office equipment to buy. Should we need more services sometime in the future, they are always available.

ESTIMATED BUDGET

  • Hobert's Retainer:............... $2,100.00
  • Phone:................................... $1,750.00
  • Postage:.................................. $ 493.00
  • Printing: ..................................$ 300.00
  • Miscellaneous: .......................$ 300.00
  • Total: .....................................$4,943.00

SUMMARY

The Lama Steering Committee has attempted to focus only on the most urgent needs of the lama community at this time, retain autonomy for all organizations and recognize diversity as a strength. The Trust Fund concept may very well be viewed as a work in progress. The final destination of this work will not be decided by this committee but by all lama organizations and their members coming together and forming a consensus for the future of the National Trust Fund.

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To continue reading the rest of the report
Health and Research
Llama Assembly "Working Together"
Relationships within the Lama Community
Internet Site
Interim Report, March 1996 (If not "merger" then what?)