Treasurer's report for 2016
The IAF is solvent with cash and reserves in excess of US$165,000.
Financially, 2016 was a challenging year for the association. Total income before expenses for the year was US$469,972.15. Expenses after adjustments were $528,125.86, resulting in a net deficit of $58,153.71.
This deficit is the result of several factors that include:
- poor retention of IAF members
- growth of discounted membership fee approvals
- IAF unintentionally subsidising the CPF programme
- fiscal challenges of IAF conferences
- the past chapter development funding policy
- credit card and bank charges / fees.
Many of these factors have been or are being dealt with by the Board through the introduction of several new safeguards for 2017.
Revenue from Member dues was less than budgeted. There are two contributing factors.
- In previous years many members, who did not qualify, took advantage of discount membership fees. Rigor was added to the membership dues payment protocol to discourage this action. Unfortunately at renewal time many discounted members chose not to renew.
- Retention of IAF members at renewal is not as good in North America and EMENA as it is in other parts of the world. Although we gain new members constantly, we also lose many. To encourage the future growth and sustainability of our membership, the Board continues to provide new opportunities and services adding value to being an IAF member.
At year end, the association had 1,670 members. Income from membership dues was $284,820. Actual revenues were in excess of this figure but to more accurately reflect income the Board chose to accrue income from two- and threeyear memberships into future years’ income.
IAF Certified™ Professional Facilitator programme
The IAF Certified™ Professional Facilitator programme is a flagship component of the IAF. After performing a financial evaluation of the programme, the Board recognised that under the previous pricing structure the association was subsidising the CPF programme. While the programme was never intended to be a profit centre the Board deemed it necessary to increase CPF assessment fees for 2017 to $2,350 to make its impact net zero. Added was a built-in inflation adjustment of 2% per year for 2018-2021. For 2017 the CPF programme is budgeted to cover all costs and enjoy a small surplus each year, which includes a newly introduced 'scholarship programme'. Recertification fees remain unchanged at $350.
Several Regional IAF conferences were held during 2016. Unfortunately IAFNAC-Trinidad and EMENA-Netherlands, both ran unexpected deficits which required IAF Global to step in to cover the losses. Canada, USA and LAC Regions contributed equally through their budgets to partially offset the losses, and the EMENA Region contributed welcome funds to share in the losses absorbed by the association.
Chapter development funding
During 2016, following extensive analysis, the Board decided to change the Chapter Member Rebate programme for 2017. The existing programme, based on the number of members in each Chapter, was creating an ever-increasing liability for each new Board at the start of each year. In addition, where funds were needed most, for example by chapters located in African countries, no rebate was available, given the low membership dues paid in those countries.
Given the importance the Board attaches to helping chapters, and with consultation with the regions and chapters, the Board completely revamped the programme into the Chapter Development Funding Protocol. Under this new arrangement at the beginning of each year the Board sets aside a specific amount, which, when divided by the number of fully constituted chapters as at the end of the previous year, provides a fixed sum available to all chapters regardless of size or number of members.
Credit card and bank charges and fees
2016 was a year during which the IAF spent $32,381 on various credit card, bank charges and fees. The Board is currently reviewing options to bring these expenses in line and take steps to ensure they are reasonable moving forward.
The Board has approved a balanced budget for 2017. Working closely in year two of our relationship with Managing Matters Inc. the Board will make every effort to implement the safeguards identified to reduce our losses and successfully work within the 2017 budget.
Respectfully submitted by Tony Nash, IAF Certified Professional Facilitator, IAF Treasurer