1. Belgian Sheepdog Club of America Treasurer’s Report
Cindy Herman
2018

2. Summary Bank Regulations – Patriot Act Know your Customer
Membership trends affecting revenue
Expense trends which require we consider alternatives to control costs to better serve membership

3. Bank Regulations

4. Patriot Act And BSCA Know your customer
Requires banks to obtain documentation from the customer to verify identity
Prevents terrorism funding
Prevents money laundering

5. How the Patriot Act Affects BSCA
Changing Signatures when new officers are elected
Opening National Specialty accounts
Opening Accounts no longer simple
No true nationwide bank
Banks dealt with – Chase, US Bank, Wells Fargo
Paperwork must be present
Often Requires more than one trip to bank
Must be coordinated with all signatures
Signatures across the country & possibly in different time zones

6. Conclusion
New Board Members will have to be available during banking hours.
This could impact their work, taking time of work will be necessary.
Might require traveling
It will take weeks and possible months to get the bank accounts in order

7. Membership Trends

8. Recent Membership non-Renewal Trends (2017-2018)
A number of memberships have not been renewed over the last two years, with commensurate revenue loss for the club
Membership revenue – and commensurately revenue – loss has accelerated between 2017 and 2018
Pressures net income
The Board and Membership will have to identify & take proactive steps to better engage and retain new members
These numbers are as of 2/1/18

9. Lifetime Membership Trends (and impact on dues)
Members who will become Lifetime Members over the next 10 years
Year
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Total
Household 2 1 3 15
Single 7 6 4 8 17 13 83
Dues Revenue Loss
210
155
150
110
190
195
340
365
260
Over the next 10 years 98 memberships (83 single & 15 family) convert to lifetime
This needs to be addressed by the Club’s Board and membership in the next few years

10. New Membership Sign-up Trend (2007-2017)
Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Total
Household 7 1 2 5 25
Single 20 13 8 4 19 12 15 9
125 21 10 14 17
150
New member signups have varied widely over the last 10 years
Ranging from 9 to 21 per year
Average: 13.6/yr
Erratic new member signups
2017 tied for lowest year ( )

11. New Membership Non-renewal Trend (2007-2017)
New Members not renewing the next year
Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Total
Household 1 2 12
Single 4 16 8 10 6 3 58 5 17 11 70
Cumulatively 47% of all new memberships in the last 10 years did NOT renew, impacting dues; trends improving
Average 6/yr non-renewals

12. Long Term Membership (Lifetime vs New)
At the projected rate of Lifetime conversions, and the current rate of new member sign-ups and subsequent non- renewals, membership dues at risk after 2025
This is best case because it does not even account for membership losses of current members
Net loss of dues paying members
Average New Members/yr ( ): 14
Average New Members/yr not renewing ( ): 6
Average New Members renewing/yr ( ): 8

13. Financial Trends

14. Net Income (2008-2017) Information from the Statement of Activities
Year
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Revenue
61579
101916
56176
72457
90329
73084
167504
60963
106272
76636
Expenses
53874
94422
53267
75074
86701
63821
177058
70399
93788
79596
$ ,705
$ 7,494
$ 2,909
$ (2,617)
$ 3,628
$ 9,264
$ (9,554)
$ (9,436)
$ 12,484
$ (2,960)
Information from the Statement of Activities
Net income has been generally negative since 2014
This is an unsustainable trend

15. Misc. Expenses Drilldown (2008-2017)
Year
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Postage -Other
1094
1995
621
1530
1502
1507
1134
1075
884
1431
Print -Other
1847
1109 43
579
2026
1104
3589
3039
1015
Bank Fees 11
102
190
185
443
200
210
326
635
Ballot
499
Total
2941
3115
1265
2299
3713
3054
4923
4324
2225
3160
The bank fees are mostly PayPal fees
Print & postage associated with Dues Renewal, Judges and Officer Balloting dominate Misc Expenses (~$2K- $4.5K/yr):
These expenses could be lowered with electronic notices rather than snail mail.
Eliminating these print & postage expenses would significantly improve Net Income
Bank fees are mostly PayPal fees
Print & Postage expenses dominate Misc expenses

16. Newsletter Revenue & Expenses
Per Statement of Activities
Year
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Revenue
18445
20238
17377
14345
14775
14170
13018
13059
15547
14620
Expenses
5607
14788
11896
9345
6091
8300
20788
16143
15067
11777
Net
12838
5450
5481
5000
8684
5870
-7770
-3084
480
2843
Revenue: newsletter subscriptions, 1st class postage paid by members, and advertising revenue
Costs: Production costs, mailing fees.
Since 2014 the Newsletter expenses have largely been a drain on finances; reducing or eliminating these expenses would improve Club’s financial position

17. Newsletter Profit and Loss Per invoice for each newsletter

18. Cost of Newsletter per subscriber Includes lifetime member subscriptions
2018 Subscription Revenue
$13,510.00
1st class postage
$852.00
Reveue (assuming stays the same)
$1,160.00
Total Revenue
$15,522.00
Less cost of newsletter
-$13,101.03
Est. Surplus/(Deficit)
$2,420.97
2018 Lifetime newsletter cost/member calculation
Newsletter & Envelopes
Postage
Annual Newsletter Cost
Avg. cost/issue
$2,183.51
$229.10
$2,412.60
Divided by # of newsletters produced
360
Cost/Newsletter
$6.07
$0.64
Issues/Yr 6
Cost/Newsletter/Member
$36.41
$3.82
$40.23

19. Club Events ( )
Club Events
Year
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Revenue
24,567
64,915
28,038
43,609
59,116
44,274
52,010
29,063
75,270
44,751
Expense
26,569
62,375
32,418
46,308
55,447
39,838
44,233
33,314
68,958
42,708
Net
(2,002)
2,540
(4,380)
(2,699)
3,669
4,436
7,777
(4,251)
6,312
2,043
This is revenue and expenses from the national specialties received during the year.
Club events since 2008 have largely been a net financial positive

20. Supported Entries ( )
Regional Specialty and Supported Entries
Year
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Expense
900
350
183
700
300
625
1550
This is the amount the BSCA pays to regional clubs or individuals who put on regional specialties and/or supported entries to help cover the cost of trophies.
New Policy – Board will approve financial support for two shows/trials per year. Club or individual can have as many non financially supported shows/trials per year they wish.

21. Determination of Dues Recommendation
Critical Annual Expenses (must be paid every year)
Insurance
—General Liability
$600.00
—Director's & Officers
$976.00
AKC Fees
$25.00
State of Indiana Corp. Registration
$7.12
990 Prep & Filing
$500.00
Website Costs
$156.86
Total Critical
$2,264.98
How many single members need to cover
113
Clubs critical expenses

22. Determination of Dues Recommendation Con’t
Amount of Dues per single/household
$20.00
$35.00
member the club receives
Revenue received from dues Single
229
$4,580.00
Household 40
$1,400.00
Total paying menbers and revenue received
269
$5,980.00
Total left after crital expenses are paid
$3,715.02
Amount club receives for health assesment
$ ,345.00
Total from dues after critical expeses and
$5,060.02
health assesment

23. Determination of Dues Recommendation Con’t
Other club expenses
Merit Achievement Awards
$400.00
Title Medallions
$1,100.00
Supported Entry Trophy Support
$1,500.00
Judge Education
$1,000.00
Junior Program
$5,000.00
Dues plus Health Assesment will cover the
$5,060.02
Cost of these expenses

24. Dues Recommendation Newsletter price remain the same for another year.
Dues recommendation – Dues remain the same at $65 for single and $80 for household. To gain more usable revenue for the club recommend the health assessment be eliminated.
Members who wish can always add $5.00 donation for health assessment

25. Recommendations for BoD investigation
Cost savings recommendations to consider:
Increasing dues will alienate members, and place an undue burden on them. Instead cut expenses in ways that will have limited impact on the quality of the club experience; increase dues only as a last recourse
Move to Electronic Balloting & membership renewals for cost savings of ~$2500/yr (using 2017)
Electronic newsletter for cost savings of ~$4500/yr (using 2017)
Offer an additional cost non-electronic option at member discretion, to cover non-electronic expenses
Improve long term health of the club and its finances by determining how best to recruit, engage, and retain new members
Local & National levels need to participate
Need to engage & retain existing members as well
Board and Membership must study and develop a plan to address critical Club Health items in the coming years