How to Start a Community Association

Community associations can provide an inclusive way to engage with members of a group with a common interest, whether focused on the local environment, social activities, events, youth sports, or other areas.

Learning how to start an association is the first step, with factors such as deciding how to manage each association vote, what voting powers members will have, and how your code of conduct, articles, and policies will aid strong governance and democratic processes.

The Foundations of a Successful Community Association

Most associations begin with a core base of founders, who can ensure their community association achieves its objectives by setting up a management committee to make collective decisions about who will take responsibility for the group, recruit members, and manage its functions. In many cases, association management software can be useful, particularly where time constraints mean that efficiency is a key priority.

What is association management software? In essence, this provides one platform where you handle all community association affairs, from keeping databases of members, managing voting and communications, logging finances and budgets, and maintaining a calendar of events.

The initial task to help define which software or administrative functions you need is to assess the group's goals, evaluate the resources necessary to meet them, and create governance documents or guiding principles that underpin association activities.

Governance Best Practices in Setting up a Community Group

Governing documents work like an association's constitution and tell prospective members, current members, and organizations you may work with your aims and how you conduct association business.

For example, your governing documents could include the following:

• Rules around voting: This includes which actions require a vote, of which membership groups, and how this is managed. For example, you could have a full members vote to appoint or re-elect members to the board.
• Guidelines for using funds: These state the rules for declaring conflicts of interest, what finances can and cannot be used for, and the spending limits that require member approval.
• Schedules for meetings and interactions: These include policies around how members can attend–sometimes virtually and in-person–how you record attendance, and any minimum attendance requirements for members.

Governance is important because it sets out the rules that apply to every member and function, reducing the potential for future misunderstandings or disparities. Voting and budgets are often key, where your policies should detail how you will protect transparency and controls, showing members how their funds are safeguarded from misappropriation, and providing equal access to voting eligibility.

Other Administrative Aspects of Launching a Community Association

Most associations will require a central bank account held separately from any personal accounts belonging to founding members, board representatives, and the chairperson, secretary, and treasurer. Keeping funds separate is essential because if your association is involved in not-for-profit or charitable activities, you may need to provide details of your banking to potential funding partners. 

Bank account statements make it easier and clearer to define which expenses and incomes are linked to the association when preparing budgets, forecasts, and financial reports for your members. Insurance is also a consideration because, depending on the purpose of your association, you may require the following:

• Trustee indemnity insurance
• Buildings or asset coverage
• Public liability insurance

Some states and municipal areas may have rules around mandatory insurance, so this is worth investigating beforehand to identify the coverage that will be compulsory.

Growing and Maintaining Community Group Membership

Your long-term success and the impact you make will hinge on your ability to attract new members and maintain their engagement. Effective teamwork and communication are crucial, ensuring every member feels valued, involved, and empowered to contribute—whether by proposing agenda items for meetings, voting on important association matters, or applying for positions on the association board.

In today’s digital age, where most members access communications through laptops, tablets, or mobiles, combining in-person interactions with online communications is a proven strategy to boost membership engagement and outreach. For instance, your association can promote upcoming meetings or events via email, implement digital voting so members can participate from anywhere, and utilize social media and online forums to publicize activities and campaigns, helping to attract new members and strengthen your membership base.