As expected, PRSA’s Q3 financial report shows that revenue and expenses for the first nine months of 2011 are tracking below budget, due to continued economic weakness and cyclical business patterns.

We continue to believe that PRSA will finish the year with a slight surplus over expenses, and thus achieve our budgetary goals for the year. While PRSA has traditionally contributed 1 percent of budgeted expenses to its net asset balance (“reserves”) at year end, we anticipate that stagnant revenue, increased costs and a reduction in corporate spending on professional development will prevent us from doing so this year.

Through September, the Society realized a net deficit of $744,000 from operations, which is $50,000 better than budget. This compares with a net deficit of $582,000 for the same nine-month period in 2010. In response, PRSA implemented a cost-reduction program that lowered expenses across all operations by $316,000, which more than offsets the $266,000 reduction in overall revenue.

PRSA also took steps to address the continued underperformance of the nation’s economy and financial markets, by updating its investment policy to safeguard its assets and responsibly grow its investment portfolio. As a result, PRSA’s portfolio decreased only 5.7 percent during the first nine months of 2011, bettering the performance of the S&P 500, which declined 8.7 percent over the same period.

Finally, we continue to follow a highly focused budgeting process. A 2012 operating plan has been developed, based on the strategic priorities outlined in the Society’s 2011-2013 Strategic Plan, and translated into a balanced financial plan for the year. Given the possibility that PRSA will implement its first Membership dues increase in 10 years in 2012, the Finance Committee has reviewed two separate draft budgets for the coming year: One that anticipates passage of the dues increase by the Leadership Assembly; and a contingency plan with multiple options for possible expense reductions, should the dues increase not pass.

Continue reading " PRSA Financial Report: Looking at the First Nine Months of 2011 "

Update: PRSA announced in August that it plans to offer its entire catalogue of professional development webinars to its members — for free — starting in 2012.

It’s hard to believe that 10 years have passed since PRSA last increased its annual membership dues. Back then, our “old” website was “new,” Marc Kasky was suing Nike, and “How the U.S. Army Public Affairs Commands Responded to the Pentagon Attack on 9-11” was the must-see session at the International Conference.

Continue reading " Funding the Future: The Rationale for a Dues Increase in 2012 "

As has been noted previously, 2010 was a year in which many Americans, including the volunteers and staff of PRSA, sat down at our proverbial kitchen tables to assess the state of our household budgets, make hard decisions about what we could and could not live without and find new ways to do more with less — all in an effort to keep our finances in the black.

It’s against that backdrop that I’d like to provide you with an overview of PRSA’s 2010 financial results.

Last year, PRSA realized a modest surplus from operations of $73,000. In addition, investment returns added $197,000 to PRSA’s reserves, otherwise known as its net asset balance or “rainy day” fund. This information is supported by the unqualified opinion issued by certified public accounting firm PKF, PRSA’s independent auditor.

As a result, PRSA met its annual financial goal of returning 1 percent of budgeted expenses to the Society’s financial reserves. In keeping with association best practices, PRSA is working to grow its financial reserves to 50 percent of its annual operating expenses, up from 33 percent of annual operating expenses currently.

Continue reading " PRSA’s 2010 Financials in Perspective "

It hardly seems as though a year has passed since I began my service as PRSA’s 2009 chair and CEO.

There’s no doubt that the past 12 months have been extremely challenging for many of us. At the same time, it’s been a period of tremendous personal fulfillment for me. As a second-generation public relations counselor who literally grew up in and around the public relations profession, my term as chair and CEO has been a unique and incredible opportunity to give back to both the profession and organization that have given me so much.

Continue reading " 2009: A Year of New Beginnings at PRSA "

Membership dues are one of PRSA’s most important income generators, so a drop of any kind is not good, but we were prepared for worse. The key to addressing recessionary challenges is to cut expenses quickly and appropriately, without degrading quality. It’s a balancing act that PRSA performed well. There were plans going into the year for 4 percent or 10 percent reductions depending on trends, and we decided relatively early that it made the most sense to implement the more aggressive cost reductions. Expenses were cut by more than $1.1 million and involved some reorganization that improved efficiency and reduced the national office staff. At the same time, we focused on increasing the value of PRSA membership, delivering some important new programs, including a redesigned Web site and “The Business Case for Public Relations,” an industry advocacy campaign.

Continue reading " Despite Challenging Environment, PRSA Projects Small Surplus for ’09 "