TEN YEARS WENT
WAY TOO FAST
Money Matters
By Keith Sessions, AMA Chief Financial Officer | amacfo@modelaircraft.org
Ten years went by way too fast. Because this is my last column, I want to thank all of the employees at AMA Headquarters. We ask a lot from this group, and they deliver repeatedly. I also want to thank all of the volunteers who work to support their passion.
I wish I could tell you who my replacement is, but, as I wrote this, that person had not been announced. There are several candidates, so I am sure we will have a great person to take over the organization’s finances. I plan to be available to help the transition for as long as I am needed. In addition to my changes, we have also hired a new comptroller, Sue Ahlbrand. She brings a lot of experience from the corporate finance world. I was able to meet her at the fall Executive Council (EC) meeting. I am sorry I will not be working with her more, but I am happy that we have found a highly qualified person for this role.
2023 is not quite over, but we are tracking well regarding our budget. Part way through the year, we changed how we account for AMA Life members. This initially created a revenue hit but things will even out over time. Our membership numbers were slightly down, which was expected and in the budget. Membership revenue was flat because of the dues increase last year. We will be able to gain the full benefit of the dues increase in 2024 and 2025 as multiyear members renew.
The inflation that we saw in 2022 was lower in 2023 but still impacted our costs. For 2024, our budget was approved at the last EC meeting. Our second largest expense is insurance. The industry continues to be in a “hard” environment, meaning that premiums increased. Ours has been steady for several years. In fact, when we look back over the long term, the increase is substantially below inflation. Our agent has fought to keep our rates low, a job which is becoming increasingly difficult.
Another large expense is Model Aviation. Many years ago, the magazine was a source of non-dues revenue, which exceeded the cost to produce the magazine. Today—and for several years—the magazine has been an expense. Our organization needs to communicate with our members, so the magazine is necessary. For 2024, a new, lower rate was negotiated for the printing help reduce the expenses. Still, at some point, we will
need to switch communication to an electronic platform similar to other news sources. Initially, this will be more expensive than printing, but, in the long run, it will reduce costs and increase communication.
For example, there are approximately two months from column deadline (which I consistently miss) to print. In an electronic communication format, it would be minutes. Additionally, searching for information would be easier. One of my most popular articles was on how to set up a 501(c)(7) and I compared it to a 501(c)(3). That is still on the website for reference, but imagine if all of this information was easily searchable.
What’s next for me? I still have my day job, which seems to demand more and more of my time. We welcomed our first grandchild in August. She is precious and I want to spend a lot of time watching her (and hopefully others) grow up. Of course, I will still be flying RC. I have a new Elite Aerosports BDX on my workbench. With luck, I will get a few flights on it before winter hits.
I hope to see many of you at the field or at an event. Finally, thank you for allowing me the opportunity to serve this great hobby.
Gone flying!
