It's Not About the $$$

I am sure that you all, at one time or another, have wondered where do our dues go or what is the financial status of the chapter. As members, we don't hear much about the fiscal workings of the chapter. I thought I would give you an update regarding the money matters of KCMPI. We set several fiscal goals this year that involved policies, reserves and fund-raising as well as general fiscal operations. Some of these have been easy to meet and others not so much.

During this past year, the board has been conducting a review of the chapter's policies and bylaws. Part of the update to the policies has been the addition of a transparency/whistle blower policy. The policy basically states that we must provide a method for reporting fiscal abuse or inappropriate financial behavior/actions. Contact information for reporting fiscal concerns is found at the bottom of each page of the chapter website. A brief monthly financial report can be found within the board minutes. Full reports are available to all members at any time upon request or are located in our electronic files.

We are required by MPI to set a balanced budget each year. As a board, we work hard to break even or turn profit each year. MPI also suggest we maintain reserves. In my 20 years of membership, the boards have worked very diligently to build and maintain the current reserve levels. We had to dip into reserves only a few times, and in most cases, have been able pay back the "borrowed" amount. Last year was one of those years and it appears we will not be able to pay back for quite some time. We still have several big events this spring, but it appears that we may still end up in the red because of reduced sponsorships and participation. Investing reserves is something the Audit Committees have been suggesting for several years. (Yes, the chapter has an audit committee that reviews the financials 3-4 times each year). We looked for investments that offered low risk, high liquidity and minimal penalty for early withdrawal.

Budget Overview:

• Average annual budget over past several years has been between $195,000 and $205,000
• 2012-2013 budget is just over $205,000.00
• Most of annual budget is sponsorship funding that we have to report as an income and as an expense so it shows up on reports as an in and an out
• Actual average annual operating costs/expenses are about $50,000.00
• Average annual reserves are $80,000.00
• Reserve investment of $50,000.00 into a four-year structured CD. The yields are not great, but they are better than what our savings account had been offering.
• Reserve investment of $30,000.00 was moved to a new money market account offering better returns

Policy review and investing were the easy parts of serving as Vice President of Finance this year. The real challenge is finding the money and resources to meet our annual expenses. This problem is not unique to KCMPI. All non-profit trade associations and agencies are facing similar challenges. We rely heavily on donations, both in kind and cash. We are all vying for the same dollars from the same audiences that have fewer dollars to give. As you well know, the competition is stiff!

Budget Challenges:

• New MPI dues rebate policies - reduced rebate amount to chapters and now mandates how rebates must be spent
• Rebate amounts paid by MPI: $14.63 per planner member and $20.95 per supplier member. That averages out to only $7,000.00 each year.
• Reduction in sponsorships and tighter competition for those funds
• Fewer members

The economy has not only impacted our sponsorship funds, but also our membership numbers. Many companies have reduced the number of members they will support, and in many cases, none at all. Chapters have a larger percentage of members paying their own dues and program fees. As a result, we have experienced a sizable reduction in members and program attendance and volunteer participation needed to support a chapter of our size.

As you can see, chapters have faced a double whammy over the past couple of years with no real relief in sight. KCMPI is your chapter and it needs you now more than ever! The best thing you can do to support KCMPI is to become an active and involved member. The return on your investment is great if you make the effort.

•  Donate your time and talent; find an hour or so each month or year and volunteer.
•  Advertise in our directory, newsletter and website.
•  Read the chapter emails and newsletters.
•  Attend our programs and events.
•  Buy and or donate items to our auctions and raffles.
•  Bring friends and colleagues and invite them to become members.

Thank you for continued support and interest. Please feel free to contact me at pjogaughan@gmail.comif you have any questions, concerns or comments.

SUBMITTED BY: Patti Gaughan, CMP, VP Finance