You are on page 1of 26

Where Are We

Today?
NABJ Finance
Committee Report
October 2015

Where are we today?


o The finance committee has examined
the financial state of the organization.
In short, it is not a pretty picture for
NABJ. With the association heading
into a projected second consecutive
year in the red, the organization
MUST tighten up its expenses but
more importantly raise revenue.

Financial Outlook
o In 2014, NABJ finished in the red by
$227,000. NABJ had a drop in
revenue year in 2014 by nearly
$500,000 compared to 2013. In
2015, the revenue drop from 2014 is
projected to be another $200,000.
o If NABJ does not increase revenues
in 2016, the organizations
financially viability will threaten the
organizations ability to operate and
keep its doors open.

Financial Outlook
o NABJ will go from $2,813,000 in 2013
to a projected $2,081,614 in 2015.
That is a drop in revenue of $731,386
in two years.
o Meanwhile expenses have stayed flat
over the same period. In 2013, NABJ
finished with $2,584, 217 in
expenses. In 2014 NABJ finished at
2,572,608 and 2015 is projected to
finish at $2,459,921.

Cash Flow
o With no HOF and lower revenues from
lack of M.I./Regions, NABJ is facing a
cash deficit heading into 2016 with a
negative balance of nearly $60,000,
this even after drawing down from
our investment account.

A Closer Look at 2015


Budget

o Revenue
$3,421,561
o Expenses $3,189,537
$2,459,921
$-378,307
Difference
Revenue: -$1,339,947
Expenses:-729,616

Actual

$2,081,614

Budget overall
o NABJ must reduce its reliance on the
convention for revenues. In
successful years, NABJ has had less
reliance.

Convention Dependence
o 2015: 58% of overall revenues from
convention
o 2014: 64%; 2013: 53%; 2012:
59%; 2011: 60%; 2010: 51%;
2009: 74%

NABJ Finances
o 2015:
o 2014:
o 2013:
o 2012:
o 2011:
o 2010:
o 2009:

-$ 378,307
-$227,182
$228,831
-$59,633.06
$3,363
$437,727
$-612,779

58%
64%
53%
59%
60%
51%
74%

A Closer Look at 2015


Revenue
Membership
Convention
Hall of Fame
Media Inst.
Regionals

Budget
Actual
Diff.
$218,000 $210,125 $-7,875
$1,370,000 $915,602 $-454,398
$210,500 $0
$-210,500
$235,100 $57,075 $-178,025
$99,063
$11,050 $-88,103

A Closer Look at 2015


Problem areas
Expenses
Budget
Actual
Diff.
Con.Audio Visual $210,500 $213,142 $2,642
Conv.Travel$25,500
$71,875
$-46375
Conv Center
$14,000
$123,128$-109,128

Expenses
2012

2013

2014

2015

AV Equipment/
serv

164,391.17

161,262

217,728

213,142

Professional Fee

245,264.06

79,654.76

140,651

34,994

Consultants

237,884.04

97,682

55,175

52,130

24,962

9,634

29,040

123,128

Travel

86,297.55

78,388.73

61,979

74,466

Convention Travel

39,481.82

30,962.52

18,839

67,437

Facility Rental

A Closer Look 2015

What does it mean


Media Institute/Regionals:
2011: $73,380 net for NABJ in black by
$3,363
2012: $83,662 in red by $59,633
2013: $109,201 in black by $228,831
2014: $66,272 in red by $227,182
2015: $44,524 in red by $378,307

What does it mean?


Hall of
2011:
2012:
2013:
2014:
2015:

Fame (net income)


$51,670 NABJ in black
$8,363 in red by $59,633
$29,601 in black by $228,831
$11,664 in red by $227,182
$0 in red by $378,307

Looking ahead
o NABJ in 2016 will have a reductions in
expenses with the joint convention.
o No convention center helps as well. Student
programming which is expensive, will be in
half.
o Lower food minimums.
o Added a convention management company to
budget. It will cost $75,000. NABJ eliminated
this in 2011. NABJ internally has managed it.
Also hotel vendor gets hotel commission.
Membership does not like this practice.

Recommendations
o An aggressive 30-60-90 day revenue
generating plan.
o Examine possibilities of a
management company to take over
the day-to-day operations of the
national office.

Recommendations
o Retain the services of an aggressive
fundraiser with vast experience in
building relationships and ensure
effective deliverables to partners.
Funders are currently working on
budgets and we must act swiftly.
o Begin to negotiate with vendors in
accounts payable, slow pay liabilities
to buy time and manage cash flow.

Recommendations
o Examine lease with University of
Maryland. Consider eliminating a
physical office or seek space for much
lower costs
o Recommend ceasing to outsource
items in which the national office can
handle such as booking travel, exhibit
booth sales and convention
registration.

Recommendations
o Recommend a January board meeting
remotely; find a sponsor or have
board members cover own cost for
board meeting.
o Recommend in the spirit of the industry trend,
propose to move printed products to digital.
These publications include the Journal,
Convention Program Book and other related
printed items. These items must have a
developed business plan and a funded budget
for production.

Recommendations
o Recommend all contracts be reviewed
by the Finance Committee before it is
signed.
o Bi-weekly development meetings
should be held with management with
detailed development reports being
provided to management and the
Board of Directors.

Recommendations
o Bi-weekly finance meeting that
includes the President, treasurer,
executive director, finance manager
and finance chair.
o The Finance Manager has a series of
recommendations that should be
looked at closely. Previous warnings
were no heeded.

Recommendations
o Implement a monthly payment plan for
Convention Registration. The overall cost of
this option would be slightly more but would
attract and get more commitment from
attendees
n This will give a better indication of actual
number of attendees and revenue forecast
projections

Recommendations
o Launch a monthly subscription
program for NABJ Members that
would give access to monthly
career/skillbuilding webinars and a
forum or chat board to engage with
members

Recommendations
o Offer sponsors the opportunity to be subject
matter experts to present on topics to NABJ
membership and job opportunities etc.
n Create opportunities for ongoing
sponsorship revenue
n Highlight members: career accomplishments
o Launch 40th Anniversary/membership
fundraiser in December to bring in cash.

How can we fix this?


o We must have a commitment to
governance, consistency and
accountability on all levels
o We must have a commitment to
communicating with the board on
financial matters.
o The board must manage up. This
means always ask the President,
treasurer and executive director
about the budget.