The First Word: NAFA’s Mid-Year Report
It’s budget season again at NAFA! That means my staff colleagues and I are taking a long look at where NAFA is going and planning how to fund the many new initiatives in 2013. As part of that work, we also take a look back and see where we’ve been successful.
As you know, NAFA is a business and every business is concerned with the bottom line. However, unlike a for-profit business, where the owners, workers, or shareholders make money when the business is profitable, NAFA is a not-for-profit corporation. That means there are no shareholders and there is no profit-sharing. Any financial gain NAFA achieves is used for the association’s benefit – for your benefit! – to deliver more and better services to you.
That’s why I am pleased to report that NAFA is running a significant profit for the first half of the year. Historically, however, the second half of the year for NAFA runs on a deficit, so while it can be projected now that we will still be profitable at year’s end, the extent of that gain is not known.
The majority of NAFA’s first-half financial gain can be attributed to the outstanding success of the 2012 Institute & Expo (I&E) in St. Louis. For the third straight year, the Expo was expanded by more than ten percent and for the third straight year it was completely sold out. We even had a list of forty companies that wanted to be in the Expo but could not be accommodated.
Also for the third straight year, we saw increased attendance at the I&E sessions. I&E conference attendance -- those who paid for admission to the educational sessions -- was up an amazing 17.5 percent from last year. Of the 752 conference registrants, 532 were fleet managers and 220 were affiliates or suppliers.
Another interesting fact: NAFA’s first half-year revenue has increased steadily for the last three years:
- January-June 2010 Revenue: $2,543,688
- January-June 2011 Revenue: $2,916,974 (+$373,286 from 2010, or 14.7 percent)
- January-June 2012 Revenue: $3,040,554* (+$123,580 from 2011, or 4.2 percent; +$496,866 from 2010, or 19.5 percent)
*For 2012, NAFA eliminated the "Interest" revenue line item from the budget. In 2010 and 2011, when "Interest" was included in the budget, NAFA had $12,651 and $11,800, respectively in Interest Revenue from January-June.
Also, NAFA’s reserve fund is now more than $3.4 million, which is ninety-six percent of our 2012 budgeted operating expenses. (In theory, NAFA could function for nearly an entire year solely on its reserve funds.) Our investments have increased more than $395,000 since last June, a growth of just over thirteen percent.
As noted, all of this success means that NAFA can do more for you. The financial success we are enjoying allows us to keep membership dues at 2009 levels, decrease registration fees for I&E, and provide free services to you such as our monthly webinars and the FleetED online library.
Looking ahead, as I review NAFA’s strategic plan, I am enthused and invigorated by the aggressive initiatives sure to mean continued success for 2013 and beyond. For instance, the following work is already being planned for next year, all of which is possible as a result of our financial success:
- Increasing the use of technology to connect members to the association and each other. This includes a complete redesign and improvements to the FleetED website.
- Developing solutions to top fleet management challenges. NAFA’s Education Strategic Planning Committee discussed more than thirty priorities and developed action plans for all of NAFA’s educational efforts for the next two years. Their recommendations have been made via an extensive "white paper" report for the Board of Trustees.
- Decreasing "time to market" of NAFA products and services. This includes expanding the use of external experts to develop materials and resources in response to highest priority member needs.
- Increasing assertive advocacy on issues of priority to membership. The entire Board of Governors spent four hours at their June meeting discussing and prioritizing issues of importance. This will form the basis of a survey to be developed by staff and distributed to Members in September.
- Intensifying NAFA’s "transnational" efforts. Joe LaRosa, NAFA’s International Vice President, is leading the charge to develop strategies for partnerships in Europe, South America, and Australia.
- Increasing chapter value and sustainability and ensuring more consistent levels of high service at chapters. Very soon NAFA will begin testing a program where NAFA provides chapters with assistance in planning meetings, marketing, communications, and other administrative/logistical functions.
I would love to hear your thoughts. Please email me or contact me through LinkedIn (search "Phillip Russo"). If you’d like to be the first to hear about NAFA news, as well as get a peek at a more personal side of me, follow me on Twitter (@PhillipERusso).
Sincerely,
Phil