No Dues Increase, And Other Good News About NAFA’s Budget
The NAFA Board of Directors recently approved a 2017 fiscal year budget that includes no dues increase for any membership categories. NAFA Regular Members, Associate Members, Retired Members, and Student Members will pay the same dues in 2017 they paid in 2016.
Playing in to the Board’s decision to hold dues rates at their current levels was the fact that NAFA’s financial outlook for the remainder of this year is outstanding. Based on August 31, 2016 actual figures, NAFA is projecting a year-end gain from operations of nearly $280,000. This compares to the budgeted gain from operations of just slightly more than $28,000. This ten-fold increase is due to reductions – in some cases substantial – in nearly every expense line item and better-than-expected revenue from I&E. Year-end 2016 expenses are projected to be nearly $487,000 under budget.
After considering non-operating expenses and investment activity in 2016, NAFA is projecting a net gain in unrestricted income for the year of more than $292,000. The 2016 budget called for a net loss of more than $66,000. This $358,000 reversal, from loss to gain, is sizable and will greatly benefit NAFA.
The gain in unrestricted income for 2016 puts NAFA back in line with its financial performance from 2009 to 2013, when more than $900,000 was added to its reserve fund as a result of our success. In 2014 and 2015, NAFA used a portion of its reserve funds to invest in new programs, such as the Sustainable Fleet Accreditation Program, our international strategic plan, and the Chapter Assistance Program. It is rewarding to see those programs now contributing to NAFA’s success, both from a member satisfaction standpoint and from a financial standpoint.
As of August 31, 2016, NAFA’s reserve fund stood at $2,589,459, which represents 56.5 percent of the Association’s annual operating expenses. In the not-for-profit world, it is common for an association to have a reserve fund equal to six months’ expenses, depending on its circumstances and the risk involved in its revenue sources. The NAFA Board is satisfied with the Association’s current reserve status and has invested those funds in instruments that ensure the preservation of principal, are sufficiently liquid, and attain reasonable rates of return.
NAFA’s success – financial and otherwise – is due entirely to you, the Regular and Associate Members who support the association’s aims and activities. Your contributions as chapter and committee leaders, speakers, writers, activists, and supporters make NAFA the invaluable resource it is!
I look forward to celebrating this year’s success with you, and to making 2017 even better.
Thank you!
Sincerely,
Phil
NAFA Fleet Management Association
http://www.nafa.org/