Every time I hear about IABC these days, I suffer a continuing feeling of sadness.
The news this past week about the professional association for communicators does little to change that feeling where that news is all about financial loss (again), leadership issues, and an unclear future.
On June 4, long-time IABC commentator David Murray – often seen by IABC’s leadership as its nemesis by asking questions the leadership don’t like being asked, never mind answering – published a guest post by former IABC Executive Director Julie Freeman on the state of IABC’s financial affairs as revealed in its 2013 financial statement that Murray says was leaked to him a month ago.
And IABC critic Jack O’Dwyer posted a stark report on June 5:
International Association of Business Communicators lost $529,073 in 2013 as revenues dipped $692,486. A loan of $250,000 was taken to fund a new website.
[...] Revenues declined 10.8% to $5,666,483 from $6,350,927 in 2012. Net assets declined 43.7% to $680,013 from $1,209,086. Its deferred dues account, representing services owed to members over the course of the dues year, was $1,499,364 or about half of dues income of $2,917,858.
Julie Freeman’s post summarizes the key financial metrics in the financial statement and continues by setting out eleven specific questions she says IABC members ought to be asking at the association’s AGM on Tuesday June 10 during the 2014 IABC World Conference taking place in Toronto, Canada:
- Where did revenues fall short of budget and why?
- What were IABC’s major expenditures in 2013? How did these expenses serve members?
- General and administrative expenses increased 56% in 2013. What was the reason for this huge increase in expenses in this area?
- Board expenses increased 25%. Faced with declining revenues, how can the Board justify this increase?
- At the end of 2013, IABC’s cash and cash equivalents were $42,172, a decline of $495,117 from 2012. Does IABC have sufficient cash to make its debt payments and pay ordinary operating expenses in 2014? How will it do so?
- The Consolidated Statements of Financial Position (the Balance Sheet) includes Intangible Assets of $552,067. What does that include? How was that determination made?
- Several years ago the IEB approved establishment of an operating reserve and a special project reserve. How much should be in each of those funds? How much is currently there?
- What is the contract dispute related to the website development? How can members be assured that new web developer will not have the same issues? When can members expect a new website?
- What impact will the association’s current financial position have on its ability to recruit a qualified Executive Director? What is the status of that search?
- What is the current IABC membership? How does that compare to prior years?
- What is IABC’s current financial situation? What is the IEB doing to ensure that IABC will finish 2014 with a positive net? And will it keep members updated about finances before June 2015?
In my view, these are reasonable questions under the circumstance, ones I would expect members to receive credible answers on without obfuscation, fudge or dodging, and in a spirit of genuine openness and transparency.
Will that happen? Well, we’ll see on Tuesday although incoming IABC chair Russell Grossman offers a sense of optimism about this and what the new Executive Board will be doing in the nature of his response to Freeman’s guest post on David Murray’s blog in a comment to it, even if that response contains a few thinly-veiled barbs directed at Julie Freeman.
A key comment in that response:
[...] IABC’s International Executive Board is focused on creating alternate business models as part of our 2014 – 2017 Strategy (which has been open to member consultation during the last year) and our new Executive Director, when onboarded, will also be required to focus on short-term revenue generation as a primary objective, to help us make up the difference on lower income from membership dues and conference income.
Finally, the one thing we continue to need to get better at is, ironically, communication.
Our member communication is now much better than it was – and thanks to our hard working staff for that. The journey continues however – there is way more to go – and I personally am committed to further and rapid improvement.
Ah, yes, a search for a new Executive Director – the role Freeman had – in the wake of the awful debacle surrounding Chris Sorek whose short-lived tenure ended when he quit that role in May 2013. The good news is that one has been found and hired – Carlos Fulcher’s appointment will be announced at the Toronto conference.
Given that I’m not an IABC member, you may wonder why I’m writing this post.
I used to be an IABC member. Indeed, I was a member for 23 years – an accredited member (ABC) for 19 of those years – until November 2012, and served the association and the profession in a wide range of volunteerism roles during this time.
You don’t just dismiss a 23-year association, a belonging, with a group of people whose values you believed in and whose professionalism and friendships you admired, no matter what’s currently going on. I still care enough to devote some time and thought to writing this post which, if nothing else, will serve as a personal bookmark on my website along with the other things I’ve written about IABC over the past decade.
Organizations can (and do) go through crises – just read the business pages on any day. I recall the part I played for IABC in a crisis in Europe when I took on a rebuilding role as Director of the then Europe/Africa Region in 2002, a role I fulfilled until 2004. It’s the kind of task that requires you to have a pretty thick skin, frankly, a clear belief in the heart of something (IABC in this case), and clear vision if you work with similar believers as I did at that time (notably, IABC members like Barbara Gibson, Marcus Ferrar and Allan Jenkins; and staff leaders like Julie Freeman and the team at the San Francisco headquarters).
So I trust that the AGM on Tuesday also serves the higher essential purpose of uniting voices – unlike last year’s town hall meeting, although I believe the circumstance aren’t exactly the same today – perhaps taking a literal embrace of the slogan of this year’s conference:
I hope that reboot bar I mentioned isn’t set too high.