About PMAs
PMA
A Private Membership Association (PMA) operates in a way that maintains the privacy of business and activities, treating them as private contracts between the association and its members. It's important to note that the law prohibits any state from passing legislation that undermines contractual obligations. PMAs are based on the belief in the unalienable right to associate. The Supreme Court has consistently upheld that the right to associate is akin to the right to assemble. Essentially, an association is a collective group of individuals exercising their right to private association.
There are various types of PMAs
- Private Associations are often referred to as Private Membership Associations, Private Education Associations, Private Health Associations, Private Ministerial Associations (Faith-based organizations or FBOs), Private Drinking Clubs, Private Social Clubs, Private Fraternal Organizations, Homeowner Associations, and more.
- Regardless of the specific type of private association, all of them fall under the category of a PMA because technically, an association cannot exist without members to associate with.
Private Associations and Their Protections
- In certain states of the United States where alcohol sales to the public are restricted, drinking is permitted within private clubs in "dry counties".
- Smoking is allowed in cigar bars or private clubs in states that prohibit smoking in public buildings.
- Activities that may be illegal in public settings are lawful within private venues, which are afforded similar protections as activities within one's own home.
- Private sports clubs like golf, baseball, football, and soccer clubs, along with Men’s, Women’s, Boy’s, and Girl’s Clubs, operate based on private rules and memberships.
- Organizations like the Cub, Brownie, Boy and Girl Scouts of America, the NAACP, the American Medical Association, and state and national BAR Associations function as private membership associations (PMA) and primarily adhere to their own rules and bylaws.
Not all private associations enjoy the same level of protection.
- Your founding documents define the protections available to your association.
- Any protections that are waived or surrendered, whether intentionally or unintentionally, are also outlined in these documents.
- Associations with improperly drafted, non-statutory compliant documents may compromise their private domain protections.
- Many associations are established as "statutory compliant" due to the founders' lack of knowledge during formation.
- The most crucial decision lies in preparing your founding documents, as they determine the extent of your private domain protections.
Is There a Limit to the Protections of My Private Associations' Activities?
- Indeed, there are limitations to these protections, but they are quite stringent. According to court rulings, an association must be involved in activities that pose a clear and immediate danger of significant harm before the state can intervene in its operations.
- Thankfully, the state cannot arbitrarily define what constitutes a significant harm. This legal standard has been upheld in courts for over 150 years. In essence, if your well-established association is not participating in actions that pose an imminent threat of serious harm or death to individuals, then these activities do not fall under the category of a "clear and present danger of a substantial evil." Simply put, as long as you avoid actions like those of Jim Jones persuading members to drink poisoned Kool-Aid, you have nothing to worry about.
- If you're ready to move to the private let us create your PMA for you.
