Publisher’s Letter

Keeping an eye on our association’s bottom line

There’s an old saying in association circles, “Non-profit is a tax status, not a business strategy.” The fact is, our association is a corporation that operates much the same as the companies that make up our membership. We have a long-term strategic plan of goals and objectives, and each year we produce a budget that details how we will pay for the various activities that support our plan. As the year goes on, we closely monitor our budget and make mid-course adjustments as needed. At year’s end, we step back to see how we did, incorporate some lessons learned along the way, and start the budget cycle all over again. We file a tax return, but because we are a 501(c)6 non-profit trade association, the tax returns are made public for anyone to review.

As CalAPA’s treasurer, I’m pleased to report that our association consistently ends each year in the black, and any excess revenues over expenses, minus a prudent reserve, are immediately invested back into the business. This fiscal prudence in managing your money has served us well through various ups and downs in the economy — even in this most unusual pandemic year.

An important component of our annual revenue, of course, is dues paid by our members. Every association in America, and CalAPA is no different, has a goal of retaining members while also attracting new members. Our strategic plan calls for us to do this by providing valuable and unique information and services that help our members understand our complex industry and operate more profitably. CalAPA has grown its membership steadily over the years and has reached yet another all-time high in 2020. Our members also are very supportive of our voluntary funds, our Political Action Committee fund and our Environmental Survival Fund, which help amplify our voice at the state Capitol and with regulators.

Another important aspect of our fiscal health is something called non-dues revenue. This is represented by activities put on by the association, consistent with our mission, that provide a steady stream of revenue and help us keep our dues among the lowest in the nation. You’ll recognize our non-dues revenue in the form of technical training classes, conferences, networking events and other activities to which we charge fees to recover our costs. Each event is like a business unit and must perform to expectations, or it is reengineered or eliminated. Based on member feedback, we are always adding new product lines. CalAPA members always enjoy the best pricing on these events, and some are even free. Many of our educational conferences and classes are open to non-members for a higher fee. This is actually a powerful recruiting tool. Many non-members, having attended a successful CalAPA event, have later joined the association.

Special thanks go out to our many event sponsors, as well as our numerous volunteers who help us keep costs down while helping us provide excellent programming and service that keeps people coming back year after year. Also, I’d like to express my appreciation to CalAPA Member Service Manager Sophie You, who helps plan and coordinate events, and prepares the detailed yet easy-to-follow financial reports that the Board of Directors reviews at each quarterly meeting. Being a member of the Board of Directors is not a ceremonial position. Laws that govern corporations and non-profit associations require that governing boards understand and are accountable for the fiscal condition of the entities they oversee. Good financial reports help the board evaluate how the association is progressing in meeting its strategic plan goals.

The fact that CalAPA has been in business since 1953, through numerous business cycles, is a testament to sound fiscal management, ethical and transparent leadership over the years, as well as core principals to elevate our industry for the betterment of all. That’s a business strategy that’s built to last.

Sincerely,

Scott Bottomley

Sully-Miller/Blue Diamond - 2020 CalAPA Board Treasurer