I HOPE THAT THIS YEAR WILL
BE BETTER THAN THE LAST
Money Matters
By Keith Sessions, Chief Financial Officer | keithsessions@hotmail.com
By the time you read this, it will be 2021 and 2020 will be behind us. I hope that this year will be better than the last. The bar is certainly set low enough.
Financially speaking, AMA ended 2020 on a positive note and in better shape overall. We saw memberships increase each month during the latter part of the year. Historically, at the beginning of each year, we see a slight decline as memberships expire and members wait to renew. When you get your renewal notice, please send it in right away. It helps the revenue stream tremendously to not have a lapse in membership.
In 2020, we applied for, and were granted, funds through the Payroll Protection Plan. The AMA met all of the requirements for forgiveness of these funds. This helped to replenish some of the lost revenue from event cancellations, membership decline, and a decrease in advertising revenue. As I type this, the US Presidential election is not even concluded. There is an expectation of additional stimulus packages after that is settled, but we do not know how much will be available to help nonprofit organizations.
In compiling the 2021 budget, we took several extenuating factors into account. First, we budgeted for a slight decrease in membership. Please do not misinterpret this as a goal; it is simply a realistic view of the environment going into 2021. COVID-19 restrictions will likely continue well into the year. Our members’ discretionary income could be limited.
On top of all of that, we will likely see FAA testing put into place in 2021. Our counterparts in other countries have already had testing implemented. They each saw a decrease in membership followed by a return of members when people figured out that testing was not a big deal.
With non-dues revenue, we took a conservative approach as well. Advertising revenue will likely be flat or down. We did not budget for any additional stimulus assistance. Interestingly enough, we saw a significant increase in the sale of plans as people went back to building. The AMA Plans Service website has been updated. Please take a few minutes to see what is available. Maybe a new project is out there for you.
AMA is planning to host two world championships at AMA’s International Aeromodeling Center in Muncie, Indiana, this year. We are being cautious to not incur expenses until as late as possible because these events could still be canceled or postponed.
Many clubs had to cancel events in 2020 because of the pandemic. It is fair to say that 2021 will be a year with similar challenges. It is okay to plan these events then make a final decision when the date is closer. Most will understand the situation, but you can expect a few to complain and be upset. It is just the way things are these days.
It would not be a new year’s article if I did not remind you to review your club’s accounts and authorized signers. If your club changed officers, you should change who can sign checks. This year, you should be able to call your bank ahead of time and arrange for an appointment. Many have closed or restricted the access inside of their branches.
I wish each of you a very happy new year and I hope to see you at the field!
