Annual Financial Report

Posted October 2017

It was my pleasure to share the 2017 annual financial report at NAP’s 2017 Biennial Convention. My message is that NAP is financially healthier today than at this time last year, and our financial future is promising.

Our budget is based on our fiscal year – December 1, through November 30. The General Fund supports the day-to-day operations of the association and our savings account is our “rainy day” fund.

The board of directors approved a balanced budget for 2016 and 2017. I am thrilled that we ended 2016 with a surplus and thus far for 2017, our revenue is outpacing our expenses. Once the final convention related expenses have been processed, we’ll have a better projection for 2017. Additionally, the board voted to adjust our investment policy to be a little more aggressive with an eye towards more growth and I’m delighted to say that our savings account is indeed growing.

For many years we have been fortunate in our ability to sustain the association through efficient operations despite a decrease in membership and an increase in inflation. A historical analysis of our membership levels revealed a trend of steady decline in our membership. In 2011 we had 3,787 members, while at this time last year we had 3,200 members. The good news is that we ended 2016 with 3,393 members and we are on pace to exceed that number by the close of 2017. Keep up the good work!

During my convention presentation, I showed trends in our membership levels, how our income and expenses compare, and events over several years. What these charts and statistics don’t reflect are the expenses our board and committee members absorb while doing the work of the association. Even without that, you can see that dues do not cover the basic expenses required to operate the board, our committees, districts, staff, operations, and services to you our members.

In the eight years (2009) since our last dues increase, the price of almost everything has increased and that includes the cost to operate our association. In 2009, if you purchased an item for $75, that same item in 2016 would cost $83 and today it would cost $85.57. Needless to say, it will cost even more in 2018 and 2019.

Earlier this year, the Board of Directors voted to increase our annual membership dues by the amount authorized in the bylaws. Effective for the 2018 dues cycle, membership dues will increase by about 12 percent as illustrated in the table below.

Classification Current Dues New Dues
Student Member $38 $42
Student Registered Parliamentarian $50 $56
Student Professional Registered Parliamentarian $63 $70
Regular Member $75 $84
Retired Member $75 $84
Club $100 $113
Registered Parliamentarian $100 $113
Professional Registered Parliamentarian $125 $141

 

Although our financial posture is improving, there are still things we must do. We must increase our membership levels by recruiting new members and increase our retention rate to the maximum extent possible, while growing our non-dues related revenue – all of which requires the help of each and every one of us. The board and I welcome your ideas, and encourage you to email me with them.