NABJ Finance Committee Report

October 24, 2015

From: Gregory Lee, NABJ Finance Chair,
Committee members: Drew Berry, Rodney Brooks, Deborah Owens and Brett Pulley
To: Sarah Glover, NABJ President and NABJ Board of Directors and the NABJ Membership
Date: October 18, 2015
It is a pleasure to once again to serve our organization as chair of this important committee. The Finance
Committee was formed in 2001 at the memberships annual business meeting when at the time the
organization was going through a financial crisis.
The membership thought it was necessary to form an independent body to serve as the voice of the
membership when it comes to financial matters and serve as an official advisory role with the NABJ
Board of Directors.
The new board of directors asked the finance committee to review the financial documents and provide
guidance to where the organization should go moving forward with its finances.
Given the extreme nature of where NABJs Finances have transpired, the committee felt it was necessary
to only meet as a body without the treasurer, finance manager and executive director because we wanted
to establish ourselves first as a body that represents first the membership and so that we can speak openly
about the state of NABJ.
After this initial report, we will conduct meetings with the treasurer, finance manager and executive
director and give a standing invitation to the NABJ President.
The finance committee has examined the financial state of the organization. In short, it is not a pretty
picture for NABJ. With the association heading into a projected second consecutive year in the red, the
organization MUST tighten up its expenses but more importantly raise revenue.
In 2014, NABJ finished in the red by $227,000. NABJ had a drop in revenue year in 2014 by nearly
$500,000 compared to 2013. In 2015, the revenue drop from 2014 is projected to be another $200,000.
So NABJ will go from $2,813,000 in 2013 to a projected $2,081,614 in 2015. That is a drop in revenue of
$731,386 in two years.
Meanwhile expenses have stayed flat over the same period. In 2013, NABJ finished with $2,584, 217 in
expenses. In 2014 NABJ finished at 2,572,608 and 2015 is projected to finish at $2,459,921.
If NABJ does not increase revenues in 2016, the organizations financially viability will threaten the
organizations ability to operate and keep its doors open.

Summary
The Finance Committee has examined the financial information for the organization for FY2015. In short,
this body is dismayed at where the organization is financially as we celebrate our associations 40th
birthday.
List of recommendations

An aggressive 30-60-90 day revenue generating plan.

Reduction of at least two full time staff members.
Examine possibilities of a management company to take over the day-to-day operations of the
national office.
Retain the services of an aggressive fundraiser with vast experience in building relationships and
ensure effective deliverables to partners. Funders are currently working on budgets and we must
act swiftly.
Begin to negotiate with vendors in accounts payable, slow pay liabilities to buy time and manage
cash flow.
Examine lease with University of Maryland. Consider eliminating a physical office or seek space
for much lower costs
Recommend ceasing to outsource items in which the national office can handle such as booking
travel, exhibit booth sales and convention registration.
Recommend a January board meeting remotely; find a sponsor or have board members cover own
cost for board meeting.
Recommend in the spirit of the industry trend, propose to move printed products to digital. These
publications include the Journal, Convention Program Book and other related printed items.
These items must have a developed business plan and a funded budget for production.
Recommend all contracts be reviewed by the Finance Committee before it is signed.
Bi-weekly development meetings should be held with management with detailed development
reports being provided to management and the Board of Directors.
Bi-weekly finance meeting that includes the President, treasurer, executive director, finance
manager and finance chair.

Revenue generating recommendations

Implement a monthly payment plan for Convention Registration. The overall cost of this option
would be slightly more but would attract and get more commitment from attendees
o This will give a better indication of actual number of attendees and revenue forecast
projections
Launch a monthly subscription program for NABJ Members that would give access to monthly
career/skillbuilding webinars and a forum or chat board to engage with members
o Offer sponsors the opportunity to be subject matter experts to present on topics to NABJ
membership and job opportunities etc.
o Create opportunities for ongoing sponsorship revenue
o Highlight members: career accomplishments

Launch 40th Anniversary/membership fundraiser in December to bring in cash.

NABJ-NAHJ Relationship

Negotiate with NAHJ to increase registration rates for the 2016 Convention. Both associations
must take advantage of the draw of Washington DC as well as reflect the cost of doing business
in D.C.
Increase the current proposed Job Fair booths by 50%. The current proposed rates are from NABJ
Convention in 2015. These groups cannot afford to provide 2 for 1 price for job fair participants.
Re-examine split with NAHJ, especially expenses. If NABJ executes joint related activities,
NAHJ must be billed for those expenses, i.e. communications comes to mind.
Cash flow concerns with NABJ funds coming after convention. NABJ must receive funds as it
comes in.