The 67th Annual General Service Conference

The 67th Annual General Service Conference

April 22, 2017 – April 29, 2017

•Supporting Our Future •Soutenir Notre Avenir

•Respaldar Nuestro Futuro

The Conference Structure

Who Makes Up The Conference

• 93 Delegates – 69.9%

• 25 Trustees – 18.8% • 15 GSO & GV Staff – 11.3%

It Breaks Out Like This

General Service

Conference

Delegates Trustees Directors GSO Staff GV/LV Staff

The Delegates

Years

Average Age 59

Oldest 75

Youngest 37

Average Length of Sobriety 23

Longest Sobriety 51

Shortest Sobriety 10

Average Length of Service 19

Longest Service 50

Shortest Service 8

3 New Class B Trustees

• Our New East Central Regional Trustee – Mark E.

• Our New Southeast Regional Trustee – Cathy B.

• Our New US Trustee-at-Large – Newton P.

(Southeast Region, on the Fifth Ballot, from the Hat)

How Does Something Get to Conference?

1 An idea, suggestion, question, concern, or subject comes from A.A. members, G.S.R.s, D.C.M.s, Area Committee members, Delegates, Trustees, or G.S.O./GV Staff, and may be shared or discussed at the group, district and Area Assembly and sent to the Conference Coordinator at GSO

2 The idea is reviewed by the GSO/GV Staff and forwarded on to the Appropriate Trustees’ Committee

3 Which may then forward the idea onto the Appropriate Conference Committee

4 Which meets at the General Service Conference and makes recommendations that are presented in its Committee Report to the General Service Conference

5 If a Conference Committee recommendation is approved, after full floor discussion, it becomes a Conference Advisory Action, which becomes binding when approved by the General Service Board.

And the Committees Are…

Archives

Agenda

Cooperation with the Professional Community

Finance

Grapevine

International Conventions/Regional Forums

Literature

Policy and Admissions

Public Information

Report and Charter

Treatment & Accessibilities

Trustees

“So, since 1951 we have been holding these yearly Conferences, to see whether this movement was interested enough, was responsible enough, felt those services were worthwhile enough, to maintain so long as God will need this society. And I think it’s the conclusion of every delegate who has been there that yes, we should take these things over.

Bill W., speaking at the 1954 Texas State Convention

So, in 1955 … we shall say to you, here is the remainder of your Third Legacy. This Conference shall become our successor. To you we hand the last torch. Carry on. Face your destiny with surety and courage, and God love you.”

Advisory Actions 67th General Service Conference

Archives

• A draft or progress report on the new publication Unity in Action: Bill W.’s General Service Conference Talks. 1951-1970 (working title) be brought to the 2018 Conference Committee on Archives for review.

Agenda

• The theme for the 2018 General Service Conference will be: “A.A.- A Solution for all Generations.” • The presentation/discussion topics for the 2018 General Service Conference will be: 1. Today’s Alcoholic: Inclusion, Not Exclusion 2. Participation in All of A.A.- Is My Triangle Balanced? 3. A.A. Technology: Where Innovation Meets The Traditions 4. Attraction not Promotion: A.A.’s Relation to the World 5. Group Conscience: The Guiding Force • The workshop for the 2018 General Service Conference will be: “Getting the A.A. Message Out.”

Cooperation with the Professional Community

• Retired the pamphlet “Three Talks to Medical Societies by Bill W.” • Add the footnote: “ This pamphlet is derived from an article written by A.A. co-founder Bill W.

in 1958. Therefore, some of the language may be dated, but the issues addressed are prevalent today” to the bottom of page one of the pamphlet “Problems Other Than Alcohol.”

• Change the name of the pamphlet “Is There an Alcoholic in the Workplace?” to “Is There a Problem Drinker in the Workplace?”

• The trustee’s Committee on Cooperation with the Professional Community is to review the pamphlets “If You Are a Professional”, ”Members of the Clergy Ask About Alcoholics Anonymous” and, “A.A. as a Resource for the Health Care Professional,” develop text to include information for professionals that come in contact with veterans and active members of the Armed Services, including information on how to contact A.A. worldwide, and bring back a report or draft text to the 2018 General Service Conference.

Corrections

• No Advisory Actions approved

Finance

• The suggested area contribution for the delegate expense for the Conference has been increased from$1,600 to $1,800.

• Review of the area contribution for delegate expense for the Conference will be every other year, starting in 2019.

• Review of the Conference-approved level of $5,000 for bequests to the G.S.B. from A.A. members will be every other year, starting in 2019.

• Review of the Conference-approved maximum annual contribution to the G.S.B. from an individual A.A. member will be every other year, starting in 2019.

• The following text is to be added to the “Self-Support: Where Money and Spirituality Mix” pamphlet: “Question: Can an individual or group make a recurring online contribution? Answer: Yes, online at aa.org.”

Grapevine

• No Advisory Actions approved.

Literature

• The following two bullet points will be removed from the section “What procedures can a group set up to sponsor new members?” in the pamphlet “Question and Answers on Sponsorship”:

* A file of names, addresses, and phone numbers of newcomers (who wish to volunteer the information), with notations showing sponsor or sponsors for each one. * Review of newcomers list by steering committee (or Twelfth Step or sponsorship committee)- with follow-up activity where it seems needed. • Approved implementation of revised plan for annual review of recovery literature, with first report to be

delivered to the 2018 General Service Conference. • Add the following text to the pamphlet “Young People in A.A.” in the section “Where do I find A.A.?”: “Young people’s conferences are held in the United States and Canada and around the world. For information, consult your local A.A. area, intergroup office, or search online for YPAA.”

Literature Continued

• Revising the wording of question 10 in the pamphlet “The A.A. Group” in the section “A.A. Group Inventory” from “Are we doing all that we can to provide an attractive and accessible meeting place?” to read “Are we doing all we can to provide a safe, attractive and accessible meeting place?”

• Trustee’s Literature Committee to develop language regarding safety to be incorporated in current and new recovery literature, where appropriate, along with a plan for implementation. The draft language, proposed plan or progress report be brought back to the 2018 G.S.C.

• Revising the pamphlet “The A.A. Group” to add the text from the service piece SMF-209 “Safety and A.A. Our Common Welfare” to the section “Principles Before Personalities” titled “Safety and A.A.: Suggestions to Consider.”

Literature Continued

• Safety and A.A.: Our Common Welfare

• Safety is an important issue within A.A. — one that all groups and members can address to develop workable solutions and help keep our meetings safe based on the fundamental principles of the Fellowship.

• “Each member of Alcoholics Anonymous is but a small part of a great whole. A.A. must continue to live or most of us will surely die. Hence our common welfare comes first. But individual welfare follows close afterward.”—Tradition One (Long Form)

• A.A. groups are spiritual entities made up of alcoholics who gather for the sole purpose of staying sober and helping other alcoholics to achieve sobriety. Yet, we are not immune to the difficulties that affect the rest of humanity.

• Alcoholics Anonymous is a microcosm of the larger society within which we exist. Problems found in the outside world can also make their way into the rooms of A.A. As we strive to share in a spirit of trust, both at meetings and individually with sponsors and friends, it is reasonable for each member to expect a meaningful level of safety. Those attending A.A. meetings derive a benefit by providing a safe environment in which alcoholics can focus on gaining and maintaining sobriety. The group can then fulfill its primary purpose — to carry the A.A. message to the alcoholic who still suffers. For this reason, groups and members discuss the topic of safety.

Policy/Admissions

• Starting with the 2018 General Service Conference electronic voting shall be done excepting for the election on regional trustees and trust-at-large which will be conducted by ballot.

• The Trustee’s Committee on the General Service Conference will develop a plan for the equitable distribution of the workload of Conference committees by combining and/or creating committees for review by the 2018 Conference Committee on Policy/Admissions.

• Starting with the 67th General Service Conference, an anonymity-protected digital Final Conference Report will be published in addition to the current print version.

• The dates for the 70th General service Conference will be April 19-25, 2020. • Starting at the 2018 General Service Conference the proposed dates of future General Service Conferences

will be considered Additional Committee Considerations rather than requiring an Advisory Action. • The General Service Office management is to submit a report on the progress, implementation and status of

the site selection of the General Service Conference for review by the 2018 Policy/Admissions Committee.

Public Information

• A new public service announcement video to be developed for a cost not to exceed $40,000.

• The pamphlet “Understanding Anonymity” be rewritten to include material from G.S.O. literature covering Tradition Eleven and to expand the discussion of humility in tradition Twelve as it relates to anonymity and that a progress report or draft language be brought to the 2018 Conference Committee on Public Information.

• A.A.W.S., Inc. is to create a Google for Nonprofits account, with use of the account limited to the YouTube Nonprofit Program and a guarantee that comments not be shown on A.A.W.S. YouTube pages. A report including information from website analytics and the usefulness and effectiveness of the A.A.W.S. You Tube account be brought back to the 2018 Conference Committee on Public Information.

Public Information Continued

• Nielsen has ranked the “Doors” PSA as Number 26 out of all 1855 PSAs monitored. That puts it in the top 5% of all Public Service Announcements!

• We currently have 3 PSAs – Doors, My World, and Tengo Esperanza. It takes several years to get from approval to a fully produced new PSA.

Public Information Continued

Report and Charter

• A section titled “Area Websites” be added to Chapter 4 of The A.A. Service Manual • Area Websites: Many AA entities now use websites as a way to communicate meeting and service information within the Fellowship.

An AA website can serve as a public information tool, providing information about AA to the public as well. As with newsletters, it has been found prudent for a committee (rather than one or two individuals) to be responsible for the format, planning, and content of the website.

• As anonymity is the “spiritual foundation of all our Traditions”, we practice anonymity on AA websites at all times. An AA website is a public medium, which has the potential for reaching the broadest possible audience and, therefore, requires the same safeguards that we use at the level of press, radio and film. Some Areas have included password protected sections of the website, which can limit access to members only, and where full names may be used. Not all AA websites contain the same information. For instance, in places where an active intergroup or central office provides meeting information, general service websites may not need to duplicate this effort, and may link to them instead.

• AA websites may feature brief excerpts from AA literature using the same guidelines as newsletters. If a site wishes to include items that are currently available on the GSO or Grapevine websites, they may link to the appropriate pages of those sites. Area websites may copy a thumbnail of a pamphlet, book or video from these sites and use it on the site as a link to the material on the GSO or AA GV site. Because public service announcements are intended to be widely shared, they may be posted directly on local AA sites. For more information, see the “FAQ on AA Websites” and the AA Guidelines on the Internet.

Report and Charter Continued

• The bylaws of both A.A. World Services and A.A. Grapevine to be included as appendices of The A.A. Service Manual.

• The General Service Board’s “Mission-Vision-Action Statement” to be added to Chapter 9 of The A.A. Service Manual.

• The G.S.O. Department Reports shared at the Conference to be included in the Final Conference Report.

• Brief bios of non-trustee directors, similar to those of trustees to be included in the Final Conference Report.

Treatment and Accessibilities

• The editorial changes for the pamphlet “A.A. for the Alcoholic with Special Needs” were adopted and the pamphlet to be retitled “Accessibility for All Alcoholics.”

Trustees

• Slate of trustees and officers for the General Service Board of Alcoholics Anonymous approved.

• Slate of directors for the A.A. World Service, Inc. approved.

• Slate of Directors of A.A. Grapevine, Inc. approved.

• The Bylaws of the General Service Board of Alcoholics Anonymous, Inc., as revised approved.

International Convention/Regional Forums

• No Advisory Actions approved.

Floor Actions

• In the spirit of inclusiveness, the General Service Office strive to provide Conference background materials in English by February 15 and Spanish and French by the first week in March beginning with the 68th General Service Conference.

• Revise the pamphlet “Too Young” to reflect more current collective experiences of young alcoholics and their welcome to A.A.

• Allow A.A. Grapevine to create a Google for Nonprofit accounts, with use of the account limited to the YouTube Nonprofit program and with a guarantee that comments not be shown on the A.A. Grapevine YouTube pages. The A.A. Grapevine Board will track its effectiveness through website metrics.

Reports Given to the Delegates

AAWS

Finance

Grapevine

AAWS

• The General Service Office has 73 full time employees, two part time employees, and one temporary employee. What do all these people DO all day?

Well… 13,600 booklets, pamphlets, and miscellaneous items shipped daily 4,900 Big Books and other books shipped daily 390 people (216 first timers) on average attended each of 14 Regional Forums held during last three

years Registered 1020 new AA groups. 230 emails responded to daily 65 phone calls answered daily 300 Seventh Tradition contributions processed daily & thank you letters sent (That’s over 73,000 a

year!) 200 Grapevine and La Viña mailed daily 6 requests for information from the Archives researched and answered daily Archives conserves A.A.’s history and manages over 2,700 cubic feet of our history – materials are

equivalent to nearly three quarters of a mile of 8½” x 11” pages of paper stacked end to end.

AND …

• In addition to all this work GSO has been shepherding 62 translations across 44 different languages. • Our Website, www.org, received over 13 Million visits last year. • Of these, 1000 visits a day were for “Need help with a drinking problem.”

• Online request for Public Information for the Press and other Media averaged 3000 a month.

AAWS Continued

2016 FINANCIAL HIGHLIGHTS Amounts in $ 2016

ACTUAL 2016

BUDGET COMPARED TO 2016

BUDGET 2015

ACTUAL COMPARED TO 2015

ACTUAL

GENERAL SERVICE OFFICE

7th Tradition Contributions 7.9 M 7.1 M 835 K (12%) better 7.1 M 781 K (11%) increase

Costs of Service Provided to Fellowship

9.9 M 10.3 M 369 K (4%) better 9.6 M 274 K (3%) increase

Shortfall between 7th Tradition & Costs of Service

2.0 M 3.2 M 1.2 M (38%) better 2.5 M 507 K (21%) decrease

Literature Profits 3.4 M 3.2 M 275 K (9%) better 2.7 M 744 K (28%) increase

Net Income 1.5 M 0.03 M 1.5 M better 0.2 M 1.3 M increase

GRAPEVINE & La Viña Average Circulation 77,429 75,610 1,819 better 77,199 230 increase

Net income (loss) 165 K (146 K) 311 K better 241 K 76 K (32%) decrease

General Fund cost of La Viña service

152 K 152 K Equal to budget 146 K 6 K increase

RESERVE FUND Coverage Ratio 10.3 months 9.6 months Increase of 0.7 months 10.2 months Increase of 0.1 months

M – millions; K - thousands

7TH TRADITION SELF-SUPPORT – 2002 – 2016

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PERCENTAGE OF GROUPS CONTRIBUTING – 2002 – 2016 45.6

44.7

43.7

43.2

45.5 45.2

44.1 44.3

43.9

42.4 42.4 42.5

41.5

40.3

41.5

37

38

39

40

41

42

43

44

45

46

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

60.00%62.00%64.00%66.00%68.00%70.00%72.00%74.00%76.00%78.00%80.00%82.00%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Percentage of Services Supported by Contributions

PERCENTAGE OF SERVICES SUPPORTED BY 7th TRADITION OF SELF-SUPPORT – 2002 – 2016

• Publishing

• Services on Behalf of the G.S.B.

G.S.O.’s TWO BASIC FUNCTIONS

Group Records

UNDERSTANDING 2016 TOTAL EXPENSES – $22.6 MILLION TOTAL COSTS & EXPENSES LESS—COST OF LITERATURE RECURRING OPERATING EXPENSES (AMOUNT USED – RESERVE FUND) LESS—OPERATING EXPENSES –GSO, GV & LV COSTS OF SERVICES PROVIDED TO FELLOWSHIP

22,645

5,235

17,410

7,503

9,907

$ in Thousands

14

UNDERSTANDING TOTAL EXPENSES – 3 YEAR HISTORY $ in Thousands 2016 2015 2014

Total Costs and Expenses $22,645 $22,441 $25,354

Less - Cost of Literature Distributed – AAWS, GV & LV

5,235 5,366 8,017

Recurring Operating Expenses¹ 17,410 17,075 17,337

Less - AAWS operating expenses 5,521 5,490 5,691

Less - GV & LV operating expenses 1,982 1,956 1,921

Total Operating Expenses 7,503 7,446 7,612

Cost of Services Provided 9,907 9,629 9,725

1- Amount of recurring operating expenses used in determining Reserve Fund Ratio.

FELLOWSHIP SERVICE ACTIVITIES – DIRECT COSTS & PERCENTAGES $ in Thousands 2016 % of Total 2015 % of Total

Group Services $2,557 25.8 2,300 23.9

Public Information 309 3.1 355 3.7

Cooperation with Professional Community 273 2.8 303 3.1

Treatment Facilities 170 1.7 123 1.3

Corrections 316 3.2 299 3.1

Overseas Services (Literature Assistance) & Loners 416 4.2 425 4.4

Archives 722 7.3 691 7.2

General Service Conference 978 9.9 1,076 11.2

Regional Forums 490 4.9 393 4.1

World Service Meeting 195 2.0 9 -

International Convention 3 - 207 2.2

Trustees & Directors Activities 397 4.0 388 4.0

Program Expenses 6,826 68.9 6,569 68.2

Supporting Services (Technology, Finance, etc.) 3,081 31.1 3,060 31.8

Total Costs of Services Provided 9,907 100.0 9,629 100.0

FINANCIAL STATEMENT

PER GROUP OR MEMBER AMOUNT

Number of Members 1,362,402

Cost of Services $9,906,588 $7.27

7th Tradition Self-Support Contributions 7,934,869 5.82

Cost of Services NOT covered by Self-Support 1,971,719 1.45

Number of Groups 66,336

Cost of Services 9,906,588 $149.34

7th Tradition Self-Support Contributions 7,934,869 119.62

Cost of Services NOT covered by Self-Support 1,971,719 29.72

MEMBER SERVICES & STATISTICS – 2016

Member Services & Statistics: 3-Year History

AAWS – PUBLISHING ACTIVITY – 5 YEAR HISTORY

12,620 12,842

17,128

12,720 13,414

2,848 2,633

4,204

2,681 3,425

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2012 2013 2014 2015 2016

Gross Sales & Net Profits

Sales Net Profits

$ in

thou

sand

s

Big Book 49%

12 & 12 17%

Daily Reflections 9%

Living Sober 3%

All other 20%

E-Books 2%

Big Book 12 & 12 Daily Reflections Living Sober All other E-Books

2016 LITERATURE SALES – $13.4 MILLION

24

LITERATURE TITLES Units and $

in Thousands 2016

Units Sold 2016

Units Sold as % of

Total

2016 Revenue

2016 Revenue as % of Total

2015 Units Sold

2015 Units Sold

as % of Total

2015 Revenue

2015 Revenue as

% of Total

Big Book 861 54.7 $6,569 49.0 793 53.4 $6,039 47.5 12 Steps & 12 Traditions

308 19.6 2,266 16.9 282 19.0 2,061 16.2

Daily Reflections

128 8.1 1,179 8.8 129 8.7 1,118 8.8

Living Sober 102 6.5 452 3.4 102 6.9 451 3.5 All Other1 117 7.4 2,733 20.3 116 7.8 2,813 22.1 Total Physical Books

1,516 96.3 13,199 98.4 1,422 95.8 12,482 98.1

E-Books 58 3.7 215 1.6 62 4.2 238 1.9

Total 1,574 100.0 13,414 100.0 1,484 100.0 12,720 100.0 1 Includes pamphlets (2016 - $470; 2015 - $501) and foreign literature (2016 - $867; 2015 - $852)

931

865

870 897

1297

1171

1008

1202

971

1064

1120

1202

1220

887 94

6

948 97

3

1130

780 86

1

0

200

400

600

800

1000

1200

1400

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

BIG BOOK – UNITS SOLD – 1997 – 2016

*

*Excludes 75th Anniversary Edition

*

25

E-BOOK UNIT SALES – 2016

17,132

5,693

1,044 67 15,855

1,804

460 521

1,168

4,921

9,610

(Units)

Big Book - 17,132 As Bill Sees It - 5,693 Dr. Bob and the Good Oldtimers - 1,044Inmate to Inmate - 67 Twelve & Twelve - 15,855 Came to Believe - 1,804Pass It On - 460 Experience, Strength and Hope - 521 A.A. Comes of Age - 1,168Living Sober - 4,921 Daily Reflections - 9,610 Total - 58,275

BIG BOOK PRICING

Year Published Original Price April 2017 Inflation Adjusted Price

First 1939 $3.50 $61.34

Second 1955 $4.50 $40.90

Third 1976 $5.65 $24.19

Fourth 2001 $6.00 $8.25

GSO & AAWS – OPERATING RESULTS – 2016

7th Tradition Self-Support $7,934,869

Cost of Service Activities $9,906,588

Shortfall

($1,971,669)* * Adjusted for interest income earned

Publishing Profits

$3,424,887

Net Profit $1,453,218

28

GSO & AAWS – OPERATING RESULTS – 2016 & 2015

$ in Thousands 2016 GSO

2016 PUBLISHING

2015 GSO

2015 PUBLISHING

REVENUE

Net Sales 13,189 $12,489 Contributions $7,935 $7,154

Interest .5 .5 TOTAL REVENUE 7,935 13,190 7,154 12,490 EXPENSES

Printing 2,640 2,757 Shipping & Warehouse 1,604 1,562

Program Expenses 6,826 2,824 6,569 2,977 Supporting Services 3,081 2,697 3,060 2,513

TOTAL EXPENSES 9,907 9,765 9,629 9,809 NET INCOME (LOSS) OPERATIONS (1,972) 3,425 (2,475) 2,681

$1,453 $206

$ in Thousands 2017 BUDGET

2016 ACTUAL

INCREASE (DECREASE)

Gross Sales $13,750 $13,414 $336 Less – Discounts allowed 235 225 10 Interest earned .5 .5 - Net Sales – Literature 13,515 13,190 325 Cost of Literature Sold 2,888 2,640 248 Direct Shipping and Warehousing 1,817 1,604 213

Gross Profit 8,810 8,946 (136) Gross Profit Percentage 65.2% 67.8% (2.6%) Program Expenses 2,947 2,824 123 Supporting Expenses 2,815 2,697 118

Total Expenses 5,762 5,521 241 Net Operating Income 3,048 3,425 (377)

GSO/AAWS combined projected net profit in 2017 - $397,798; net loss in both 2018 - $255,000 & 2019 - $746,000

AAWS – PUBLISHING – 2017 BUDGET

GRAPEVINE – AVERAGE CIRCULATION – 2001 – 2016

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016APP 588ON-LINE 5,535 5,175 5,262 5,233 5,030PRINT 115,034 115,753 112,614 108,203 104,356 103,878 106,099 104,993 102,281 93,144 90,493 82,258 77,126 74,000 71,966 71,811

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

GRAPEVINE – KEY AMOUNTS – 4 YEAR HISTORY

2013 2014 2015 2016Grapevine 1,478 1,529 1,418 1,449Other Content 516 509 551 456Net Profit 315 326 241 165

1,478 1,529 1,418 1,449

516 509 551 456

315 326 241

165

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

$ in

Tho

usan

ds

Gross Profit & Net Profit ($ in Thousands)

GRAPEVINE – STATEMENT OF ACTIVITY AVERAGE CIRCULATION – PRINT 71,811 71,966 (155)

ONLINE & APP 5,618 5,233 385 2016

ACTUAL 2015

ACTUAL Increase

(Decrease) Magazine Revenue $2,126 $2,144 (18) Magazine Direct Costs (677) (726) (49) Gross Profit on Magazine 1,449 1,418 31 Other Publishing Revenue – Slide 56 692 811 119 Costs of Goods Sold (236) (260) (24) Gross Profit on Other Publishing Items 456 551 (95)

Total Gross Profit 1,905 1,969 (64) Costs and Expenses Editorial Costs 688 667 21 Circulation and Business 899 925 (26) General and Administrative 168 144 24

Total Costs and Expenses 1,755 1,736 19 Interest Income 15 8 7

Net Income 165 241 (76)

GV – OTHER PUBLISHING REVENUE – 4 YEAR HISTORY

Titles 2016 2015 2014 2013 Language of The Heart – all languages $101,674 $106,213 $109,678 $123,399 Emotional Sobriety - Vol. I & II 72,626 82,936 84,010 87,005 One on One 19,966 22,072 35,884 73,483 No Matter What 20,795 26,198 29,152 57,067 Grapevine Daily Quote 30,904 44,924 81,978 - Sober & Out 12,656 13,639 31,759 - Happy, Joyous & Free – all languages 49,295 143,302 18,960 - Forming True Partnerships 37,357 47,549 - - Our Twelve Traditions 54,485 - - - All others1 292,356 324,242 390,667 436,022

Other Publishing Revenue 692,114 811,075 782,088 776,976 1Includes sales of E-Books in 2016 – $21,436; 2015 – $25,324; 2014 – 29,419 and 2013 – $32,734.

2016 2015 2014 2013 2012

Average Circulation:

Print 71,811 71,966 74,000 77,126 83,258

Online & App 5,618 5,233 5,262 5,175 5,535

Total 77,429 77,199 79,262 82,301 88,893

Gross Profit on:

Magazines $1,449,248 $1,418,247 $1,529,061 $1,477,689 $1,525,247

Other Content Producing Activities 455,898 550,581 509,303 515,827 423,668

Total Gross Profit 1,905,146 1,968,828 2,038,364 1,993,516 1,948,915

% Other Content Publishing Items to Total Gross Profit

23.9% 28.0% 25.0% 25.9% 21.7%

GV GROSS PROFIT ANALYSIS – 5 YEAR HISTORY

GRAPEVINE OPERATING RESULTS – 2002 – 2016

(11,797)

5,366

60,945 44,198

(48,873) (25,047)

(138,456)

(132,594)

(399,037)

22,438

257,003

315,205 325,827

240,811 164,539

(500,000)

(400,000)

(300,000)

(200,000)

(100,000)

0

100,000

200,000

300,000

400,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

GrapevineOperating Results

2016

GRAPEVINE – 2016 ACTUAL VS BUDGET AVERAGE CIRCULATION – PRINT 71,811 70,369 1,441

ONLINE & APP 5,618 5,241 377

$ in Thousands 2016 ACTUAL

2016 BUDGET

Increase (Decrease)

Magazine Revenue $2,126 $2,093 $33 Magazine Direct Costs (677) (731) (54) Gross Profit on Magazine 1,449 1,362 87 Other Publishing Revenue 692 577 115 Costs of Goods Sold (236) (222) 14 Gross Profit on Other Publishing Items 456 355 101

Total Gross Profit 1,905 1,717 188 Costs and Expenses Editorial Costs 688 755 (67) Circulation and Business 899 913 (14) General and Administrative 168 200 32

Total Costs and Expenses 1,755 1,868 (113) Interest Income 15 5 10

Net Income 165 (146) 311

GRAPEVINE – 2017 BUDGET AVERAGE CIRCULATION – PRINT 68,592 71,811 (3,219)

ONLINE & APP 5,611 5,618 (7)

$ in Thousands 2017 BUDGET

2016 ACTUAL

Increase (Decrease)

Magazine Revenue $2,017 $2,126 (109) Magazine Direct Costs 687 (677) 10 Gross Profit on Magazine 1,330 1,449 (119) Other Publishing Revenue 689 692 (3) Costs of Goods Sold (220) (236) (16) Gross Profit on Other Publishing Items 469 456 (13)

Total Gross Profit 1,799 1,905 (106) Costs and Expenses Editorial Costs 749 688 61 Circulation and Business 976 899 77 General and Administrative 203 168 35

Total Costs and Expenses 1,928 1,755 173 Interest Income 15 15 -

Net Income (114) 165 279 GV projected net loss – 2018 - $326,000 & 2019 - $527,000

LA VIÑA – AVERAGE CIRCULATION – 2002 – 2016

0

2,000

4,000

6,000

8,000

10,000

12,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

La Viña

LA VIÑA – STATEMENT OF ACTIVITIES Average Circulation 10,374 10,355 10,380

2016 2015 2014 REVENUE

Magazine $119,882 $121,130 $121,886

Related Items 32,895 12,965 12,923

Total Revenue 152,777 134,095 134,809

Costs of Goods Sold 77,910 60,855 65,031

Gross Profit 74,867 73,240 69,778

COSTS AND EXPENSES Editorial Costs 133,413 130,204 122,859

Circulation and Business 86,437 81,933 73,337

General and Administrative 7,099 7,481 5,608

Total Costs and Expenses 226,949 219,618 201,804

Shortfall between Revenue and Expenses (152,082) (146,378) (132,026)

Support from GSB General Fund NET

152,082

- 0 - 146,378

- 0 -

132,026

- 0 -

La Viña projected shortfall: 2017 - $167,818; 2018 - $181,854 & 2019 - $195,129

Remember

Finance has no importance

in and of itself.

Finance is simply a way

to help carry the message

to the still suffering alcoholic.

The Conference in Spring

Even the Elevator Buttons were all About AA

The 67th General Service Conference

• Thank you for this opportunity to serve you, our Area, and all of AA.

• Thank you for your own service.

• Next year, the 68th General Service Conference will be:

AA – A Solution for All Generations