questions from the national president concerning: ncma chapter rebate policy update board of...

Questions from the National Presidentconcerning:

NCMA CHAPTER REBATE POLICY

UPDATE

Board of Directors Meeting24 January 2009Las Vegas, NV

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• Submitted Survey to Chapter Presidents– Issued 12 December 2008 – Responses due 19 January 2009– 56 Responses

ISSUE: Should NCMA continue to “invest” > $100,000 in chapters each year via Chapter Rebates?

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GUIDING PRINCIPLES1. We want to insure that those Chapters that need

the cash the most receive it. 2. We want to insure that any chapter who has a

valid business reason for financial assistance will continue to have the opportunity to receive it.

3. We want to promote the business concept of National realizing the greatest ROI of utilizing their cash.

4. We will establish a process that is simple, efficient, consistent, and with minimal oversight.

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ANNUAL CHAPTER REBATE ANALYSIS

<$2500 <$5000 <$10000 <$20000 <$50000 >$50000 TOTAL

# CHAPTERS 7 9 22 15 14 4 71

% CHAPTERS 10% 13% 31% 21% 20% 6% 100%

BOTTOM LINE IS THAT 75% OF CHAPTERS HAVE >$5000 IN CHECKBOOK 90% OF CHAPTERS HAVE >$2500 IN CHECKBOOK

YEAR END CASH BALANCE

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# of Members Chapter Rebates

2008 Total Income

2008 Total Expenses 2008 Net

2007 Beg Bal

2008 Ending Bal

1 39 Cincinnati 350.00 704.20 448.70 255.50 158.40 413.902 55 West Sound 505.00 2,667.00 2,402.83 264.17 395.77 659.943 11 West Dakota 0.00 0.00 0.00 1,017.46 1,017.464 268 Atlanta 14,041.10 13,532.20 508.90 1,105.81 1,614.715 75 LA Gateway 675.00 4,486.81 3,893.12 593.69 1,223.05 1,816.746 102 Mardi Gras 4,239.80 5,875.22 (1,635.42) 3,516.76 1,881.347 20 Blue Ridge 198.50 198.50 0.00 198.50 2,205.13 2,403.63

1 42 Texoma 7,247.25 7,459.65 (212.40) 3,647.95 3,435.552 127 Kansas City 1,000.00 1,907.34 1,446.24 461.10 3,085.07 3,546.173 65 Vandenburg 509.50 17,314.45 20,206.13 (2,891.68) 6,522.59 3,630.914 323 Free State 1,000.00 2,197.41 1,794.00 403.41 3,390.71 3,794.125 34 Greenville 0.00 0.00 0.00 4,110.48 4,110.486 519 Huntsville 40,467.00 60,878.81 (20,411.81) 24,808.17 4,396.367 155 Saint Louis Gateway 1,000.00 8,319.77 9,162.11 (842.34) 5,746.10 4,903.768 28 Air Capital 264.00 5,987.00 3,898.27 2,088.73 2,818.05 4,906.789 25 Central Arkansas 198.50 769.46 (570.96) 5,482.97 4,912.01

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2008 Total Income


2007 Beg Bal

2008 Ending Bal

1 89 Jacksonville 1,366.00 6,536.64 5,867.34 669.30 4,351.93 5,021.232 106 Beach Cities 838.50 11,519.50 9,871.40 1,648.10 3,514.03 5,162.133 64 Greater Johnstown 2,386.25 13,112.80 10,762.35 2,350.45 2,971.09 5,321.544 19 Red River - was North Dakota 297.00 4,577.38 2,435.77 2,141.61 3,220.73 5,362.345 51 South Florida 1,296.00 1,296.00 0.00 1,296.00 4,077.84 5,373.846 191 Suncoast 1,000.00 13,799.08 16,072.43 (2,273.35) 8,135.56 5,862.217 121 Southern Nevada 1,000.00 11,091.47 13,390.92 (2,299.45) 8,263.61 5,964.168 45 Anaheim 1,445.00 3,582.23 (2,137.23) 8,547.32 6,410.099 23 Bandelier 230.00 7,983.68 4,996.39 2,987.29 3,667.71 6,655.00

10 61 Wisconsin 560.00 589.17 0.00 589.17 6,120.04 6,709.2111 108 San Fernando Valley 1,824.00 6,729.00 6,338.65 390.35 6,455.99 6,846.3412 88 Greater Pittsburgh 1,764.50 8,349.50 4,916.25 3,433.25 3,464.13 6,897.3813 142 Dahlgren 1,000.00 10,035.00 5,331.00 4,704.00 2,523.00 7,227.0014 56 Alamo 480.00 4,102.45 1,927.79 2,174.66 5,147.82 7,322.4815 87 East Central PA 13,882.88 10,896.01 2,986.87 4,967.00 7,953.8716 64 Bluegrass 584.00 7,658.00 7,086.44 571.56 7,464.92 8,036.4817 195 Hampton Roads 2,000.00 29,753.70 29,236.91 516.79 8,240.17 8,756.9618 59 Aloha 537.00 600.00 946.87 (346.87) 9,510.14 9,163.2719 195 Battlefield Dulles 12,366.31 7,344.59 5,021.72 4,317.19 9,338.9120 144 Chesapeake Bay 3,759.65 3,789.65 (30.00) 9,634.14 9,604.1421 147 Mid Florida 1,000.00 1,240.00 273.48 966.52 8,906.97 9,873.4922 65 China lake/Ridgecrest 542.50 6,993.52 5,475.80 1,517.72 8,394.29 9,912.01

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2008 Total Income


2007 Beg Bal

2008 Ending Bal

1 72 Upper Chesapeake 638.00 8,052.28 6,965.26 1,087.02 9,057.51 10,144.532 433 San Diego 1,000.00 18,476.22 19,836.96 (1,360.74) 11,887.23 10,526.493 61 Northern West Virginia 545.50 8,054.55 8,264.20 (209.65) 11,517.22 11,307.574 133 Rockford Area 1,000.00 15,572.89 13,908.53 1,664.36 9,770.12 11,434.485 68 Antelope Valley 596.50 9,352.71 8,143.81 1,208.90 10,857.00 12,065.906 137 Northwest Florida 1,000.00 9,087.81 5,172.51 3,915.30 8,488.61 12,403.917 127 Bethesda-Medical 1,000.00 5,265.15 10,140.49 (4,875.34) 17,344.33 12,468.998 31 Quad Cities 238.50 1,011.50 1,086.07 (74.57) 12,788.53 12,713.969 103 Saguaro 836.50 14,366.50 12,754.51 1,611.99 11,115.69 12,727.68

10 52 Leatherstocking 465.50 14,011.87 14,324.51 (312.64) 14,038.50 13,725.8611 106 Northeast Indiana 825.00 13,610.47 8,467.24 5,143.23 10,102.38 15,245.6112 137 Columbia Basin 1,000.00 28,042.66 33,766.68 (5,724.02) 22,395.75 16,671.7313 44 Northeast Ohio 227.52 0.00 227.52 16,946.81 17,174.3314 939 NOVA 1,000.00 26,799.90 19,025.15 7,774.75 10,311.49 18,086.2415 192 Greater Philadelphia 1,000.00 5,021.66 5,715.73 (694.07) 20,615.99 19,921.92

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2008 Total Income


2007 Beg Bal

2008 Ending Bal

1 155 Great Salt Lake 1,965.00 43,087.62 39,056.93 4,030.69 16,310.66 20,341.352 167 Twin Cities 1,000.00 13,085.39 13,897.90 (812.51) 21,427.43 20,614.923 196 Norfolk Area 1,000.00 3,780.00 3,323.00 457.00 8,058.00 8,515.004 307 Denver 15,082.99 29,556.79 (14,473.80) 35,623.20 21,149.405 117 Sooner 961.00 36,758.00 28,970.79 7,787.21 13,588.01 21,375.226 140 East Tennessee 16,873.84 19,827.71 (2,953.87) 24,405.02 21,451.157 58 Picatinny 39,980.79 35,220.07 4,760.72 17,776.89 22,537.618 175 Puget Sound 1,196.07 3,820.93 4,552.46 (731.53) 23,825.74 23,094.219 160 Central Connecticut 1,000.00 3,215.00 2,141.83 1,073.17 24,434.78 25,507.95

10 121 Greater Iowa 1,000.00 24,290.54 27,130.85 (2,840.31) 28,626.45 25,786.1411 278 North Texas 6,406.19 11,325.00 (4,918.81) 31,991.24 27,072.4312 166 Rio Grande - was Albuquerque 26,595.05 24,137.79 2,457.26 26,372.68 28,829.9413 246 Fort Worth 2.27 2,495.00 (2,492.73) 45,665.78 43,173.0514 463 Boston 1,020.00 48,929.37 55,766.45 (6,837.08) 54,982.14 48,145.06

1 287 Cape Canaveral 1,000.00 49,208.69 44,162.48 5,046.21 48,528.85 53,575.062 274 Dayton 1,000.00 22,225.04 17,496.00 4,729.04 50,693.07 55,422.113 327 Space City Houston 1,000.00 77,176.52 58,529.29 18,647.23 55,452.13 74,099.364 1,489 Tysons Corner 1,000.00 126,779.34 95,982.09 30,797.25 68,553.62 99,350.87

9,953 Total 48,495.32 1,021,648.12 963,453.09 58,195.03 994,682.94 1,052,877.97

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What criteria would we use to cut off the rebate? (assuming we still want to do that.)

• 1. Cash Balance (if you have lots of cash then you don’t need the rebate.)

• 2. Ratio of Revenue to Cash (on the assumption that chapters who made more, spent more and therefore would need a higher cash safety net)

• 3. Ratio of Profit to Cash (on the assumption that if a chapter spent all of its income instead of hording the profits, then they would need a higher cash safety net)

• 4. Ratio of Cash to Members• 5. Ratio of Net profit to members• In the end, I decided there is not a clear matrix to come up

with that is fair to all chapters since there is such a wide range of chapter sizes, revenues, and cash with no clear correlation.

ANNUAL CHAPTER REBATE ANALYSIS

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Should chapter rebates be eliminated as an automatic benefit?

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Would there be any impact to your chapter operations if you did not receive the automatic annual rebate?

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If you answered yes, please provide a brief description of the impact.

• The chapter would even have less cash to provide good programming (speakers) to the chapter members.

• The additional funds allow us to offer a scholarship program for students pursuing their career as a contract professional.

• We budget for our officers and board to attend Leadership Conferences and World Congress. Without those additional dollars, some projects will suffer. And, I expect our attendance this next calendar year to decline due to the economy. We're already experiencing a smaller turnout to our functions.

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If you answered yes, please provide a brief description of the impact.

• We are barely able to break even each year. some years we are up a few dollars, others we lose a few and that is with the rebate in our budget.

• It would deplete our savings and not allow us to risk special events, host NES’s due to limited cash flow to back an NES and other such events.

• Our chapter will take cost cutting measures. We already have, for example we do not have name tags, etc. We will likely reduce our travel to the leadership summits. We may put a moratorium on awards for becoming a certified contract manager.

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Other than your current chapter rebate is your chapter in need of additional funds?

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Please provide other comments or suggestions on a more effective use of chapter rebate funds.

•Receipt of funds should be based on a proposal describing the use of the funds as well as the anticipated benefit.•I suggest that a quarterly submission process be established•Receiving the rebate, even though it's capped at $10 per 100 members, is an incentive for the chapter to continue recruiting new members. At least the chapter is receiving a small benefit from the membership dollars.•I definitely think the chapter rebate should continue and the use should be left up to each individual chapter as long as it's applied to educational assistance (which includes scholarships, conferences & seminars). •Every chapter is different, and none of us want to beg for money. I think if it comes to requesting funds the smaller chapters will not request out of pride and the effort to do the extra work to justify their need.

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•Is creating a grant process really efficient? What is the impact of this? Will chapters with limited funds and volunteers be unduly burdened in order to get support from HQ? Why not have an OPT OUT box on the financial report submitted to HQ where a chapter with sufficient resources can OPT OUT of receiving the annual rebate? •If you eliminate the chapter rebate, then no chapter should get it. If there is truly a financial need situation, then that should be addressed with the chapter. •I think that funds should go to those chapters that are most in need and can demonstrate a plan for utilizing the money so that the Local and National organization benefits. In lieu of providing the rebate, a chapter could receive reduced rate on the NES course material.

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•The idea of a grant program to assist chapters with a short term shortfall in funding or a project to further the goals of NCMA is a good idea. But eliminating the rebate entirely is too drastic. •A reduction in the rebate or a small increase in membership dues to fund a grant program would be better than a total elimination of the rebates.•It would be good to provide guidance on what is a reasonable savings amount based on chapter size as Presidents are concerned about the perception that THEY had a negative impact on the chapter if savings is less than last year.•Everyone wants a bailout these days...

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Conclusions from the Chapter Viewpoint

1. Chapters don’t want their REBATE taken away and if we do their chapter will implode.

2. Most Chapters do not need more rebate.3. Implementing a GRANT process will be too burdensome

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Conclusions from the CDC1. Most Chapters have significant cash balances and should

not need rebate money2. We need to understand why the chapters are keeping

huge reserves.3. We need to understand why chapters with huge

balances are not establishing programs (generating income)

4. If National established a Cash Balance cut-off limit, for example $10K, then 30 chapters would NOT received a rebate equating to $30,000. a. What would we do with $30K?b. Would we lose >$30K of Goodwill?

BOTTOM LINE: Until we can answer #4, don’t do anything.

questions from the national president concerning: ncma chapter rebate policy update board of...

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