C.A.R Strategic Planning Presented by Joel Singer September 2011

C.A.R. CREPACIMPAC CREPAC Federal Scholarship Foundation Organizational Chart

CREIEC REBS C.A.R. CREPACIMPAC CREPAC Federal Scholarship Foundation Organizational Chart

CREIEC REBS C.A.R. CREPACIMPAC CREPAC Federal Scholarship Foundation Housing Affordability Fund Education Foundation REBT, Inc 100% zipLogix, LLC 64.4% RERS, LLC 100% calMLS (calREED) Current Organizational Chart

2012 Budget Analysis Revenue Expenditures Membership

Budget Review Note: Forecast based on 2011 projection with inflation adjustment before budget review

$ Millions C.A.R. & Subsidiaries Combined Revenue 37

$ Millions Revenue vs. Expenditures ( Excluding Subsidiaries)

2011 Projected Expenditures

2012 C.A.R. Sources of Revenue

2012: Where Your Dues Dollar Is Invested

10 Largest Program Expenditures in 2012 & 2011

Number of Budgeted Staff Positions Number of Staff

Member-to-Staff Ratio

Cycle 1: ,346 (peak) to ,655 (trough) % Cycle 2: ,025 (peak) to ,500 (trough) % Cycle 3: ,254 (peak) to 9 Years 3 years 7 years 9 years 6 years Membership Comparison

Membership Dues Per Member Membership dues was reduced in 1995 from $77 to $64. IAF $10 was implemented in the same year.

RevenuePercentage Dues Revenue as Share of C.A.R. & Subsidiaries Total Revenue

Member Benefit Provided in Terms of $ Amount 2012 Program Cost $24,512,000 Dollars spend per member in 2012 is $159 Compared to the $115 membership dues paid to support 2012 Programs.

REALTOR® Advertising Media: Radio Television Online Advertising Video Social Media Core Program Cost$2,026,700

California Real Estate Magazine Revenue $ Thousand

Online Advertising Revenue $ Thousand

New Member Services Added Last 10 years ZipForms ® Digital Ink ZipVault Forms Advisor/Tutor Statewide Ombudsman Young Professionals Network AORN Touch Member Mobilization Smart Phone Application C.A.R. Online Redesign Consumer Advertising Campaign calMLS REALTOR® Showcase Customer Contact Center Field Program Housing Affordability ePubs Legal Hotline Expansion Strategic Defense Communication Video Content

Liquid Reserves

REBS. Revenue $3.9million Net Surplus $244,300 REBT, Inc. Revenue $344,000 Net Surplus $297,000 Before Transfer zipLogix (64.4%) Revenue: $6.1 million Net Surplus $1.4 million RERS, LLC Revenue $37,000 Net Loss ($32,100) Before Transfer 2011 Projection for Profit Entities

Combined Revenue REBS & Subsidiaries $ Millions

REBS & Subsidiaries Combined Net Income $ Thousands P

REBS Transfer to C.A.R. ($ Millions)

Million REBS Inc. and Subsidiaries Projected Cash Balance – December 31, 2011

CREPAC IMPACCREIEC CREPAC Federal Political Action Committees

Membership Dues $184 $115 (62.5%) Support Programs $69 (37.5%) Support Political Activities Membership Dues and Assessments

Political Assessment included in Membership Dues In 1995 Issues Action Fund (IAF) $10 In 2000 Political Action Fund ( PAF) $10 In 2011 REALTOR® Action Assessment (RAA) $ Proposed REALTOR® Action Assessment $39

C.A.R. Member Dues $184 C.A.R. Dues $115 PAF Political Activities Fund $10 IMPAC- Local Matching 10% ofRAF Voluntary Contribution IMPAC- State Matching 5% of RAF Voluntary Contribution Balance- PAF Funds support All Admin Costs For IMPAC/CREPAC & LCRC Remaining Balance Allocate 70% to State IMPAC Allocate 30% to Local IMPAC RAA $49 Allocation CREPAC 45% LCRC 30% CREIEC 25% C.A.R. Membership Dues IAF Issues Action Fund $10 REALTOR® Action Fund (RAF) contribution Amount $50 to $5,000 Housing Affordability Fund (HAF) Voluntary Amount up to $10 RAF contribution $50 to $98 Voluntary Allocation CREPAC 45% $50 to $98 LCRC 30% $50tof $98 CREIEC 25% $50 to $98 RAF contribution $99 to $5,000 To CREPAC Federal RAF contribution with the corporate check $99 to $5,000 allocated to CREIEC Voluntary Contribution Voluntary Contribution Program funded by RAA Current Dues, Assessments and Voluntary Contribution

CREPAC State $3,098,250 CREPAC State $3,098,250 CREIEC $1,721,250 CREIEC $1,721,250 Communications Membership Value Campaign Material $20,000 Communications Membership Value Campaign Material $20,000 Federal Govt. Relations Officer’s Lobbying Trip $25,100 Federal Govt. Relations Officer’s Lobbying Trip $25,100 Political Affairs Fundraising $317,900 Political Affairs Fundraising $317,900 Member Mob. Phone App. $60,000 Member Mob. Phone App. $60,000 Program Costs $645,000 Program Costs $645, REALTOR® ACTION Assessment Allocation LCRC $1,136,025 LCRC $1,136,025 IMPAC Local $929,475 IMPAC Local $929,475 PAF Field Program (KC, LL) $222,000 PAF Field Program (KC, LL) $222, *70% of RAA after program costs*30% of RAA after program costs Projected as of December 31, 2011

CREPAC State $1,940,979 CREPAC State $1,940,979 CREIEC $1,078,322 CREIEC $1,078,322 RAF Receptions $175,000 Fed Gov’t Relations (Officer’s Lobbying Trip) $25,100 Fed Gov’t Relations (Officer’s Lobbying Trip) $25,100 Campaign School $50,000 Campaign School $50,000 RAF Fundraising/RPC $663,500 RAF Fundraising/RPC $663,500 Program Costs $1,384,713 Program Costs $1,384, REALTOR® ACTION Assessment Allocation LCRC $711,692 LCRC $711,692 IMPAC Local $582,294 IMPAC Local $582,294 PAF Field Program $4,313 PAF Field Program $4, *70% of RAA after program costs*30% of RAA after program costs C.A.R. Electoral Services $39,700 C.A.R. Electoral Services $39,700 Member Mob Phone App $35,000 Communications Membership Value Campaign materials $20,000 Communications Membership Value Campaign materials $20,000 CREPAC Local Candidate Field Program $372,100 CREPAC Local Candidate Field Program $372,100 Based on 2012 Proposed Budget

CREPAC State $1,185,619 CREPAC State $1,185,619 CREIEC $658,677 CREIEC $658,677 RAF Fundraising $743,500 RAF Fundraising $743,500 Fed Gov’t Relations $211,400 Fed Gov’t Relations $211,400 CREPAC $252,700 CREPAC $252,700 Campaign School $50,000 Campaign School $50,000 Program Costs $3,063,291 Program Costs $3,063, REALTOR® ACTION Assessment Allocation LCRC $434,727 LCRC $434,727 IMPAC Local $355,686 IMPAC Local $355,686 IMPAC $133,800 IMPAC $133, *70% of RAA after program costs*30% of RAA after program costs RAF Receptions $175,000 RAF Receptions $175,000 CREPAC Local Candidate Field Program $372,100 CREPAC Local Candidate Field Program $372,100 Member Mob Phone App $35,000 Member Mob Phone App $35,000 C.A.R. Electoral Services $39,700 C.A.R. Electoral Services $39,700 Communications Membership Value Campaign materials $20,000 Communications Membership Value Campaign materials $20,000 PAF Field Program $124,241 PAF Field Program $124,241 Gov’t Relations $905,850 Gov’t Relations $905,850 Based on Task Force Recommendations

BASED ON TASK FORCE RECOMMENDATIONS ProgramTotal C.A.R. General Fund (%) C.A.R. General Fund ($)NAR (%)NAR ($)PAF (%)PAF ($)IAF (%)IAF ($)RAA (%)RAA ($) Government Relations 4100$1,811,70050%905,850 50%905,850 Federal Govt. Relations 4110$422,80050%211,400 50%211,400 CREPAC 4700$505,400 50%252,70050%252,700 Campaign School 4701***$50, %50,000 IMPAC 4800$267,600 50%133,80050%133,800 LGR/Legislative Committee 4140 $172,50054%83,106 18,60013%20,00733%50,787 RAF Fundraising 4121$760,300 16, %743,500 PAF: Member Mob 4120$406, %406,400 PAF: Field Program 4122$653,900 81%529,659 19%124,241 PAF: Member Ed 9102$505, %505,000 RAF Receptions 9104$175, %175,000 PAF Overhead 9100$7, %7,000 CREPAC Field Program$372, %372,100 C.A.R. Electoral Services$39, %39,700 Member Mob. Enhancement (4120A) $54, %54,800 Member Mob. Mobile Phone App (8260) $38,70010%3,700 90%35,000 Communications, MVP (6000) $20, %20,000 $6,262,900 $1,204,056 $1,522,866$437,287 $3,063,2916,227,500

BASED ON 2012 PROPOSED BUDGET ProgramTotal C.A.R. General Fund (%) C.A.R. General Fund ($) NAR (%)NAR ($)PAF (%)PAF ($)IAF (%)IAF ($)RAA (%)RAA ($) Government Relations 4100$1,811,700100%1,811,700 Federal Govt. Relations 4110$422,80094%397,700 6%25,100 CREPAC 4700$505, %505,400 Campaign School 4701***$50, %50,000 IMPAC 4800$267, %267,600 LGR/Legislative Committee 4140 $172,50088%151,5003%6,0009%15,000 RAF Fundraising 4121$760,300 2%16,80011%80,000 87%663,500 PAF: Member Mob 4120$406, %406,400 PAF: Field Program 4122$653,900 99%649,587 1%4,313 PAF: Member Ed 9102$505, %505,000 RAF Receptions 9104$175, %175,000 PAF Overhead 9100$7, %7,000 CREPAC Local Candidate Field Program $372, %372,100 C.A.R. Electoral Services$39, %39,700 Member Mob. Enhancement (4120A) $54, %54,800 Member Mob. Mobile Phone App (8260) $38,70010%3,700 90%35,000 Communications, MVP (6000)$20, %20,000 $6,262,900 $2,364,600 1,717,787773,000 1,384,7136,240,100

REALTOR® Action Assessment

Global Expenditure Plan

State PAC’s Expenditures In A Two Year Cycle

Top 10 PAC Contributors Election Cycle

Political Fundraising

$ Millions

Political Action Committee- Fund Balance As of July 31, 2011 Millions

FOUNDATIONS Scholarship Endowment $1.2 million Education Endowment $89,500 Housing Affordability Funds Funds Available $2.7 million Foundations As of July 31, 2011 $3.9 million

$ Millions Housing Affordability Fund Since Inception, as of July 31, 2011

$ Millions Housing Affordability Fund

SPF recommendations on the 2012 C.A.R. Budget and Augmentations to be presented by Don Faught, Treasurer

Questions?