Worcester Chapter Presentation 2017 Goals AMC Economics AMC “Reserves” Chapter Financial Observations Considerations Worcester Chapter Economics Worcester Chapter Financial History

NOTE: We’re going through the same process with the VCCs! 2017 Goals Hold Treasurer webinar covering the Finance & Administration Manual Fixed Asset & Capital Planning Meeting with each chapter’s leadership to help answer chapters’ finance-related questions NOTE: We’re going through the same process with the VCCs!

AMC Economics – AMC’s Funding Sources $13.4M – Philanthropy $2.5M – Program Fees, Contracts & Other Revenue $10.9M – Lodging Revenue $2.0M – Merchandise & Publications Annual Fund – $3.4M Membership – $3.1M Endowment – $2.5M Grants – $1.9M Capital Campaign (LGI) – $1.9M Support Funds – $0.5M NH/NJ/NY Facilities – $4.4M Huts – $4.1M Maine Facilities – $0.8M Volunteer Led Camps & Cabins – $1.7M

AMC “Reserves” Rationale for AMC “Reserves” For “risks” within rigorous budget discipline To protect against the variability and unpredictability in revenue and expenses Where is the budget “variability”? Outdoor Program Centers Weather, economy, consumer trends Philanthropy Year-end donations, grant success, competition, government funding, investment returns Operating Surplus Fund (OSF) Composed of annual surplus and bequests Board determined $1.5m (approx. 5% of revenues) “Strategically” spend excess (V2010, V2020) $2m spent 2010-2016

Chapter Financial Observations Significantly improved financial conditions Buildup of “Cash & Reserves” Operations are generating surpluses Conservative spending? Fewer newsletters? Other? Investment returns on endowment and invested reserves Total Chapter Cash & Reserves = $1.85m OSF = $2.3 current ($1.5m floor) What is the appropriate level for chapter contingency funds given… Reserves at the AMC level Mission needs Fiduciary responsibility We are engaged in a process to determine the appropriate level of “Reserves”

Considerations Stewardship Appropriate Spending Contingency Long-term sustainability Fiduciary responsibility Appropriate Spending Publicly Charitable Mission-oriented Contingency Covering net fixed costs (vs. variable costs) Protecting against unexpectedly lower revenue and expenses Existing AMC reserves AMC Operating Surplus Fund, as an example

Worcester Chapter Finances FUNDING SOURCES “Stable & Recurring” Revenues Endowment Allocation Membership Allocation “Variable & Recurring” Revenues Program Income Other Income Other Funds Excess Cash Invested Reserves FUND DEPLOYMENT “Stable & Recurring” Costs Publishing & Promotion “Variable & Recurring” Costs Program Costs Other Costs Strategic Projects

Worcester Chapter Financial History

Worcester Chapter Financial History Note: The decline in cash assets in 2012 is due to a $23k capital purchase