Indiana Association of Realtors Inc

What it reported doing in 2024

Legal affairs - legal affairs expenditures support the association attorneys and staff in educating members on the laws governing the realtor profession and real estate transactions. Specifically, these expenditures produce and maintain an electronic library of legal forms available to all members to guide their clients through every type of real estate transaction and administer the legal hotline, a toll-free telephone and e-mail address by which managing brokers may seek free legal guidance. Said expenditures also promote and enforce the national realtor code of ethics through the shared professional standards enforcement program, and provide equal opportunity and housing, and risk reduction training at association events. Association attorneys also help with courses and materials for the association-owned real estate certification program (recp). Legal affairs ensures compliance with campaign finance law, including approving realtors political action committee (rpac) disclaimers for local boards, advising local boards on rpac and the law, providing assistance to iar staff to respond to inquiries from the Indiana election commission and the filing of the campaign finance report for rpac. Legal affairs expenditures promote and provide for legal review of all iar leases, contracts and related legal agreements and oversees the defense of iar lawsuits, claims and other legal matters. Legal affairs also administers the legal action program to help alleviate litigation costs for members and/or local associations involved in litigation. The purpose of the legal action program is to provide financial assistance to support litigation of significance to the association, including matters relevant to the practice of real estate, the operation of real estate associations, ownership and use of real estate, and private property rights. Legal action funds are to be used exclusively to pay the legal fees, costs, and expenses incurred in connection with the litigation for which assistance is requested and provided.

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 91.7%; rating input score 92; 7th percentile among comparable filings
• Pay-setting controls: 5 of 6 controls in place; rating input score 83
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 8 of 9 controls in place; rating input score 89
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Fail
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 14.1%; rating input score 69; 69th percentile among comparable filings
• Total-asset coverage ratio: 3.68; rating input score 78; 78th percentile among comparable filings
• Liabilities to assets ratio: 0.21; rating input score 43; 43rd percentile among comparable filings
• Officer compensation ratio: 32.1%; rating input score 5; 5th percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: 5% per year; rating input score 100; 41st percentile among comparable filings
• Asset growth: 11.9% per year; rating input score 100; 65th percentile among comparable filings