Evolution of the CLCC
The CLCC has not always been separate from ACLP. In the beginning, the CLCC was a committee within ACLP. Over time, the CLCC evolved into a 501(c)6 non-profit with its leadership structure and governance.
Why the shift to the CLCC in 2018?
This shift was necessary to achieve the strategic goal of accreditation from the National Commission of Certifying Agencies (NCCA). This accreditation is important because it enhances a certification program’s credibility and legitimacy, increases the value and stature of a program, and provides accountability and validity. Overall, it is a mark of high quality in the world of certification.
Why the shift to a separate 501(c)6 in 2022?
In 2022, the Internal Revenue Service (IRS) officially recognized CLCC as a 501(c)6 under the parent organization ACLP, a 501(c)3. According to the IRS, certification dues are considered Unrelated Business Income Tax (UBIT) and cause major tax penalties annually for ACLP. However, certification dues are exempt from tax penalties under 501(c)6 IRS rules. ACLP’s accountant and audit firm advised that it would be in our best interest to have this structure changed for tax reasons. This new structure means the CLCC has a separate governing board, bylaws, policies, and budgets.
The timeline showcases the major changes to the CLCC.