United States J24 Association

2003 Proposed Budget

Discussion

2002 looks like it will end with almost 200 fewer members than anticipated. Hopefully, our finances will breakeven for the year. This presents us a great challenge for 2003. Our short-term solution is to increase dues and reduce the magazine expense by repositioning it as a single issue “yearbook”. The budget does provide an increase for the website as a method of replacing any communication lost due to the reduced magazine publishing.

While there may be many ways to reduce costs slightly, this does not address the key issue of the declining membership. This issue is addressed in a separate “White Paper”.

The budget is shown in two formats. The more detailed budget is itemized in the standard way, with expenses and revenue by function. The other itemizes revenue and expenses by the activity that they support. While this format is imperfect, at present time, it provides us with a view of the organization’s resources that should align with the member’s expectations. Hopefully, this format will help us as we design the future of our organization.

On behalf of the finance committee, I respectfully submit this budget.

David Anderson

Finance Committee Chairman

					2002 Budget	Projected Year End	2003 Budget
Regular Members					1200	1008	1000
Associate Members					120	76	70
Member Dues					50	50	60
Associate Dues					25	25	25
IJCA Dues					8	8	8
Ordinary Income/Expense
		Income
			Advertising
				Sponsorships
				Advertising - Magazine
				Advertising- Calendar	2,000	1,500	1,500
			Total Sponsorships / Ads
			Calendar		7,000	7,655	7,500
			Magazine - Editorial Payment		13,240	11,000	5,500
			Mailing Labels		250	1,060
			Membership - Junior		140	200	200
			Membership - USJCA		60,000	50,400	60,000
			Membership - USJCA Associate		3,000	1,900	1,750
			Royalties - USJCA		21,600	21,000	21,000
		Total Income			107,230	94,715	97,450
		Cost of Goods Sold
			Calendar Expense
				Calendar Printing	6,000	6,000	6,000
				Pre-press and layout	1,000	1,000	1,000
			Total Calendar Expense		7,000	7,000	7,000
			Cost of Goods Sold
				Royalty Tag Costs	7,200	4,980	4,980
			Total Cost of Goods Sold		7,200	4,980	4,980
		Total COGS			14,200	11,980	11,980
	Gross Profit				93,030	82,735	85,470
		Expense
			Advertising Expense			270	270
			Bank Service Charges		300	500	500
			Communications
				Internet Service	299	373	373
				Telephone	1,500	1,300	1,300
				Website Services	458	458	2,000
			Total Communications		2,257	2,131	3,673
			Contract Labor		240	100	100
			Credit Card Expense		320	500	500
			Dues and Subscriptions		75	75	75
			Equipment Rental
				Computer Rental	1,048	1,157	-
				Postage Meter Rental	1,155	1,155	1,155
			Total Equipment Rental		2,203	2,312	1,155
			IJCA - magazine		12,000	12,000	6,000
			IJCA Dues		9,600	8,064	8,560

			Magazine Expense
				Film and Processing		500	300	300
			Total Magazine Expense			500	300	300
			Office Supplies			3,000	1,500	1,500
			Payroll Expenses
				Payroll Taxes
					FUTA	434	434	434
					SS, Medicare	2,601	2,601	2,601
					State UT	240	243	243
				Total Payroll Taxes		3,275	3,278	3,278
				Ad commission		400	1,372	1,372
				ED Salary		34,000	34,000	34,000
				Insurance Reimbursement		2,400	2,400	2,400
				Payroll Expenses - Other		738	738	738
			Total Payroll Expenses			40,813	38,510	38,510
			Photographer/ Processing			250	250	250
			Postage
				Postage- Magazine		1,400	1,860	930
				Postage - Other		3,000	3,500	2,500
			Total Postage			4,400	5,360	3,430
			Printing and Reproduction			250	-	-
			Professional Fees
				Accounting		600	600	600
			Total Professional Fees			600	600	600
			Rent			4,800	4,800	4,800
			Repairs
				Equipment Repairs		500	500	500
			Total Repairs			500	500	500
			Shipping
				Scale Shipping		500	66	125
				Templates Shipping			120	120
				Shipping - Other		300	350	350
			Total Shipping			800	536	536
			Supplies
				Computer Equipment		1,200	1,200	-
			Total Supplies			1,200	1,200	-
			Travel
				Travel - ED		2,250	2,250	2,250
				Travel -Tech Comm Chair		400	400	400
			Total Travel			2,650	2,650	2,650
		Total Expense				86,758	82,158	73,909
	Net Ordinary Income					6,272	577	11,561
Net Income						6,272	577	11,620
Members to Breakeven						149	14	223

2003 Activity Based Budget
Activities	Income	Expense
Calendar	9,000	7,600
Magazine	5,500	7,330
Dues	61,950	8,560
Royalities	21,000	4,980
Website		10,191
Mid Winters		1,954
Nationals		1,954
Measurement		2,735
Regatta Support		1,954
Database requests		1,954
New Member Questions		1,954
Executive Committee		2,599
Scheduling		1,954
Promotion		2,199
Random Requests		1,954
Administrative		9,062
Bookkeeping		2,443
Miscellaneous		1,745
Total	97,450	73,124

Note that the expense total does not exactly tie out to the Functional Budget. Also the expenses can be better categorized, for example, some of the administrative costs should be allocated to the collection of dues. If this format is continued in the future, it will be improved with experience.

2002 Activity Based Budget
Activities	Income	Expense
Calendar	9,000	9,500
Magazine	13,240	15,100
Full Member	60,000	8,000
Royalities	21,600	10,300
Website		10,600
Mid Winters		2,500
Nationals		2,500
Measurement		6,000
Regatta Support		2,500
Database requests		2,500
New Member Questions		2,500
Executive Committee		2,700
Scheduling		2,500
Promotion		2,700
Random Requests		2,500
Administrative		7,700
Bookkeeping		3,100

Total	103,840	93,200