AMERICAN CHAMBER OF COMMERCE EXECUTIVES

BOARD OF DIRECTORS MEETING

TUESDAY, NOVEMBER 5, 2013

ALEXANDRIA, VA

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Board Meeting & Event Schedule

Events-at-a-glance schedule for those who are attending the meeting:

Sunday, November 3

6:30 pm Dutch Treat dinner at Seagar’s Restaurant (inside Hilton Old Town)

Monday, November 4

2:00 pm - 3:30 pm Finance Committee Meeting (ACCE Office)

4:00 pm - 5:30 pm Executive Committee Meeting (ACCE Office)

5:00 pm - 6:30 pm Cocktails at ACCE Office

7:00 pm until… Dinner at Flat Iron Restaurant – Old Town, Alexandria

Tuesday, November 5

7:30 am – 8:30 am Breakfast at Hilton Alexandria

8:30 am – 11:00 am Board Meeting at Hilton Alexandria

11:30 am – 3:00 pm Strategic Planning Retreat

Schedule of upcoming meetings is also posted at: www.acce.org/boardsite

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ACCE Board of Directors November 5, 2013

Alexandria, VA

AGENDA

WELCOME & SELF-INTRODUCTIONS

i. GOVERNANCE

Review & Approval of Minutes from September Conference Call

Nominations – Fill Open Seat (Pat Sheeran, Cincinnati, to replace Tracee Troutt)

ii. RESOURCES

Audit Presentation from McGladrey & Pullen

Proposed Changes to Revenue Model

Fringe Benefits Inc. Annual Meeting

CGEF & Education Grant Activity

iii. CURRENT AFFAIRS (CONTEXT) DISCUSSION

Shutdown/Deficits/Obamacare/Election ’13 & ‘14/Cyber Snooping/ Palin’s Easter Celebration

iv. UNDERWAY AND UNDER DISCUSSION

Strategic Planning (retreat to follow Board meeting)

ACCE Branding: Presentation and Discussion re. New Name and Logo

Chamber Revenue Models and the Horizon Initiative

Conversion to New Research Software

Conventions & Education:

2014 – Cincinnati / 2015 – Montreal / Region for 2016? / Webinar Growth

v. COMMITTEE & STAFF REPORTS

Community Peer Groups:

Metro Major

Emerging Hometown

Divisions:

Membership Development Government Relations

Communications Professionals Diversity-Inclusion

Economic Development Education Attainment

Information Committee – HERO, Chamber Executive, etc.

vii. OTHER BUSINESS

ADJOURN TO BEGIN PLANNING RETREAT

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BEFORE WE BEGIN – Please take time, or engage your CFO, to update your organization’s compensation info. Participation by the Board is very important! Thanks.

President’s Report Executive Summary, November 2013

Theme for this Board briefing? As you know, I often take idea from recent activities in my life. After trips to

British Columbia, Germany and Texas, only one thing is on my mind . . . air travel.

Mileage Rewards

Right before our board meeting, Chairman Betty Nokes is taking leisurely 26-mile jog around the five

boroughs in the New York City Marathon. Good luck Madame Chairman!

Take-Off

You may have noted a new task force of the board related to the “Horizon Initiative.” This working group

will be looking at the next 10-20 years of chamber life. David Brown is chairing the task force, which may

expand beyond the board at some point. Joe Roman will be taking the issue one step farther, looking for

funding to drive a formal research project on the “what next?” question.

The first step for the Horizon project was to figure out where chambers are today, which is not easy. A

comprehensive white paper on chamber revenue models is being completed as I write this report. It more

resembles a book than a paper, examining everything from events to economic development campaigns. You

will get a first look in Alexandria next week. Thanks to WACE for their financial and data support on this

project.

Put On Your Own Mask Before Assisting Others

For ACCE to help all of you and your peers, we must remain healthy financially ourselves. We’re doing that,

but not without a lot of effort. I thought stress might account for CFO Jacqui Cook’s recent hospitalization,

but they tell me near-rupture of an appendix is not caused by money worries. She is fine now.

ACCE’s finances remain solid. The complexity of the report makes it more difficult for analysis and

predictions. Grants for specific projects, our year-old alliance with the Los Angeles Chamber Foundation,

sponsors choosing exotic options . . . it’s all hard to put into the right columns and rows. Thank goodness

Jacqui, Debi and Kim are on the job! (See separate finance memo). Audit is complete and clean, but with a

couple of notes we can discuss in person with the auditor from McGladrey, who is attending our meeting.

Friendly Skies

As you know, we had to re-schedule the fall meeting of the Board, in part to accommodate the dozens of

members (including directors) traveling with our generous Central Holiday friends and their peers to Istanbul

and Torino. I spent time with representatives of both cities during my World Chambers Federation meetings

in Hamburg Germany in mid-October. Among other topics on the table during the WCF General Council

session was a review of nominees for limited seats representing the chambers of the world. The US already

has two seats, including mine, but we’re campaigning for a third – electronic vote to occur in November.

Star Alliance

Almost everyone in the country expresses the opinion that business and educators must work together to

repair and advance the nation’s education model (perhaps to more closely resemble the German system?).

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ACCE’s Education Attainment Division has become one of our most vibrant subgroups. Certainly the

foundation support we’ve received, in part because of our Alliance with the LA Chamber’s Foundation, is

providing us with both funds and expertise to help chambers improve education attainment in their regions.

“Please Refer to the Instruction Card in the Seatback Pocket”

The other way we use the word “education” around here regards professional development of chamber

leaders and staffs. Webinars remain very popular across virtually all divisions, with 60-100 participants on

every topical call. These peer and expert-led teleconferences are included in the membership package.

Enrollment in online courses remains disappointing. Every association has migrated all or most of its training

to on-demand web-based delivery, but we’re having trouble generating significant use of our online courses.

Business Class

ACCE’s future business model has been examined a great deal over the last two years. Let me re-state -- our

revenue streams are not in trouble. Dues are coming in, the retirement plan is growing, convention revenue

was okay (almost), sponsorships continue to grow and new foundation resources have been found. So, why

are we digging into the business model? By now, you know that some of ACCE’s core expense lines,

including some growing budget items, have been subsidized by non-recurring revenue. We have relied on

campaign funding over the last three years to create and maintain products like HERO, the University, econ

development programming and chamber brand enhancement. They have become part of the overall

perceived and real value of ACCE membership, but they don’t generate the revenue required to pay for them.

Those dollars must be found elsewhere, or otherwise monetized.

We have drafted a viable growth scenario (attached), which will rely in part on a “concierge” level of membership (yet to be named), in conjunction with pay-to-play elements, both of which would be new

for an all-inclusive organization like ACCE. We’ll need your input on the adjusted model before, during and

after the strategic planning retreat on November 5.

Booking

The 2014 Convention and culmination of our centennial celebration will be a blast. Cincinnati is a great

conference city, located in ACCE’s densest membership corridor. The recently announced MLB schedule

shows the Reds at home, and new attractions by the Ohio River continue to blossom. Modifications are

anticipated in the daily convention schedule. Meanwhile, behind-the-scenes planning is already underway for

2015 and beyond. Montreal folks are champing at the bit to begin their prep work. ACCE’s strategic

planning exercise will include a deep examination of the purposes, timing, customer, pricing and content.

Fuselage Emblem

The globe painted on the tail is already taken, as is the American flag, so we’re selecting from a small number

of other possible logos for ACCE. The selection will be part of a broader rebranding effort.

Thirty Thousand Feet

The view and conversation about ACCE’s new strategic plan on November 5 will be a high level overview,

not the on-the-ground crafting of a finished plan. A separate briefing packet is on the boardsite for those

participating or interested in the Strategic Planning Retreat. This will be my fourth multi-year plan. You can

count on a similar approach for the next 3-year period – aspirational but realistic. The boardsite also includes

more background on specific ACCE programs (origins/purposes). They are contained in the board book

from July 2013. ALSO, PLEASE COMPLETE THE BRIEF PLANNING SURVEY on the BOARDSITE.

See ACCE Strategic Planning Questionnaire.

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Thrust

Nothing about this place is static; we’re not waiting around for a new plan before we take meaningful action.

The new offices have improved efficiency, visibility and, frankly, self-image for all of us on the team. We can’t

wait to show it off to those who pay for it! The team itself is in transition, with talented new folks replacing

those recently departed. Ever more prestigious partners are clamoring for the chance to work with us and you

through ACCE’s unique distribution model. ACCE is swamped with work and it’s all good. We know we

can’t delay in our constant drive to move . . . ONWARD.

Mick’s Micro Notes:

Chris’ book is done and undergoing final editing.

We lost my assistant Rachel Feinstein and Community Advancement Director Chaaron Pearson.

Tamara is just a course away from completing her master’s degree as a counselor (then I can really put her to

work on all you abnormal types).

Upcoming roadwork includes Carolina’s meeting in Asheville and an extended visit in the KC area.

To accommodate a subtenant and ensure adequate space for growth, we have contracted for an additional

200 square feet of space in our building.

CEO turnover remains a challenge. Several jobs – Hampton Roads, etc. – still open after several months.

Memphis and Spokane are the latest big chamber openings to be announced.

By coincidence, I’ve been in touch with several past chairs in recent weeks – Hadley, Toebben, Cole,

Steinbacher, Gray, Kinsinger, v’Soske, etc. All are still hard at the work and still big fans of ours.

It’s really hard to get to Kelowna, BC.

The good side of mega-data spying on the electronic communications of the entire world is that it is creating

a new cyber cluster in the economy – complete with a Silicon Valley 1993 feel about it, according to

Washington BOT CEO Jim Dinegar. Location? Where else, near the NSA north of the Beltway.

My granddaughter Lilah is doing better – still has growth and eyesight problems but being three makes her

feel very grown up and important.

I am doing fine. The personnel committee of the Board met recently and decided to keep me employed for

another year. Thanks to them and to you.

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ACCE Board of Directors Meeting September 13, 2013

Conference Call MINUTES

Present: Tom Baldrige, Matthew Ballard, Ken Brengle, John Brewer, Kelly Brough, David Brown, Rebecca Brubaker, Ray Burns, Cathy Burwell, Chip Cherry, Jim Chesshir, Dan Colantone, Bill Connors, Kit Cramer, Mike Dalby, Richard Dayoub, Rob Engstrom, Ginny Fanning, Tim Giuliani, Wendy Gramza, Oz Griebel, Kelly Hall, Chip Hallock, Dave Hauser, Cindy Larsen, Adam Legge, Eddie McBride, Leonardo McClarty, Troy McLellan, Barbara McNees, Jean McPheeters, Chuck Meadows, Bob Morgan, Pat MulQueeny, Aaron Nelson, Betty Nokes, Wendy Northcross, Julie Pastrick, Gary Plummer, Joe Reagan, Bob Rohrlack, Joe Roman, Rob Simpson, George Swift, Jim Tollefson, Tracee Troutt, Steve Van Dorn, Michael Varney, Marianne Virgili, Roy Williams, Blake Wilson. Regrets: David Adkisson, Rick Baker, Francoise Bertrand, Jay Byers, Shannon Full, Jim Heeter, Chris Messina, Ralph Schulz, Todd Shimkus, Ellen van der Horst. Staff Present: Mick Fleming, Tamara Philbin, Crystal Moore, Brad Holt, Chaaron Pearson. Chairman Betty Nokes called the meeting to order. Governance & Administration Crystal Moore, ACCE’s VP of Professional Development, reviewed the upcoming board meetings:

November 4-5, 2013 – Alexandria, VA

April 24-25, 2013 – New Orleans, LA

August 12, 2013 – Cincinnati, OH The minutes from July 23rd were reviewed.

The motion was seconded and approved. Chairman Nokes recommended that Jacob Stuart be elected to fill 5th Board 1-year at-large seat.

The motion was made, seconded and approved. Committees and task force assignments were discussed by Nokes and Fleming. Some board members requested clarification of assignments and goals [some subsequently changed committees].

Strategic Planning Process

Chairman Nokes directed Board members to complete a strategic planning survey that has been posted on the Board web page.

o Action Item: Complete survey for staff to collect feedback for our November 2013 Board meeting.

Joe Reagan will facilitate a strategic planning session during the Board retreat on November 5, following the Board meeting.

ACCE Business Model Refinements

Chip Cherry gave an update on possible refinements and new revenue streams for ACCE, some of which will be incorporated in the new strategic plan.

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Staff and Committee Reports

Foundation Grants & CGEF—Fleming gave a report on grants received recently by ACCE, which

include a Lumina payment of more than $1 million. Dan Colantone talked about the Education

Attainment Division’s efforts.

Information Office – Jay Chesshir and Kit Cramer gave a report on HERO. Cramer requested Board

members to submit content to the Information Office, especially to the Chamberpedia section.

Networks – Joe Roman gave a report on networks, especially the Diversity and Inclusion Council.

Roman announced the following meeting dates:

o December 8-10, 2013 – Houston, TX: Metro Government Affairs Senior Staff

o January 19-22, 2014 – Sarasota, FL: Major Cities CEOs

o January 22-24, 2014 – Austin, TX: Metro CEOs

Tamara Philbin reported on Personal Networks and mentoring.

o Action Item: Directors were asked to enroll as mentors on this self-service site.

Professional Development – Kelly Hall reported on products and programs, including recorded

convention courses, available via ACCE University.

o Action Item: Staff and committee were asked to focus specific attention on developing

more program specific to small chambers.

Current Year Resource Development – Chair-Elect Tom Baldrige reported on membership,

sponsorship, and partnerships. Stacey Breslin reported on FBI progress. Treasurer Jim Tollefson

reported on ACCE’s financial status thru July 2013 (4 months into the fiscal year), which showed a

surplus compared to budget year, even before the convention and Lumina grant had “hit” the

financial report. He noted that revenue was running as anticipated and expenses were under control.

Some major items, such as membership revenue and sponsorships were specifically highlighted on

the P&L. The balance sheet showed a healthy cash and short-term investment position, as nearly $2

million in unrestricted net assets.

o Treasurer Tollefson moved acceptance of the financial report. Motion seconded and

approved.

NOTE: DUE TO TECHNICAL DIFFICULTIES WITH THE CALL, THE OPEN DISCUSSION

PERIOD DID NOT TAKE PLACE.

Adjournment

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Network & Professional Development Report

Professional Development Upcoming Conventions:

Cincinnati 2014- Planning for Cincinnati is well underway and going well. We are developing several new series including Leadership, Small Business Development and Small Staff.

Also, are introducing a call for speakers process this year. If you would like to present or would like to recommend a speaker for this year’s convention, the form can be found on the convention page of our website.

Montreal 2015 - Convention Center and hotel contracts should be signed by the end of November. Seminars: The National Sales Training will be held in Kansas City, MO, March 27-28, 2014. It will be hosted by the KC Chamber. This event is in its 5th year and attendance remains strong, averaging 80-100. Online Learning: Track Packs are here! Visit our online store to purchase the best of the best from this year’s convention in OKC. Content includes video and audio support.

Divisions Update Divisions are peer groups based on professional discipline and are open to any member with responsibilities in that area. Alliance for Regional Stewardship (ARS) The first edition in a new quarterly newsletter was released featuring an in-depth profile of the Greater Des Moines Partnership. More organizational profiles are planned for upcoming issues. Volunteers and staff are revamping the nominations and application process for annual ARS recognition.

Division Chair: Paul Matthews, Executive Director, 495 MetroWest Corridor Partnership Staff Liaison: Chaaron Pearson

Communications Division Did you know… The communications LinkedIn group has 1,197 registered members. Social media best practice and event marketing dominate the dialog. Recent discussions include integrating texting into event communication and setting up a social media ambassadors program.

Division Chair: Cynthia Reid, VP – Marketing and Communications, Greater Oklahoma City Chamber Staff Liaison: Brad Holt

Diversity and Inclusion Division The division is in awareness building mode. Last month’s newsletter highlighted the diversifying marketplace, members are writing articles about their programs of work for the next two issues of Chamber Executive magazine, and work continues on a white paper outlining the business case for chambers to focus on D&I.

Division Chair: Sonya Hughes, VP, Diversity & Community Initiatives Grand Rapids Area Chamber Staff Liaison: Ian Scott

Economic and Community Development Division Did you know… The Chamberpedia page outlining Chamber-EDC Structure Options is the most tapped resource in response to economic development related questions. This page explains the various ways regions align traditional chamber of commerce and economic development functions. It focuses both on organizational structure and organizational brand.

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Division Chair: Jay Chesshir, President and CEO, Little Rock Regional Chamber Staff Liaison: Ian Scott

Education Attainment Division Next month the EAD will roll out a chamber self-assessment (version 1.0) intended to serve as a diagnostic tool for chambers analyzing how education and workforce development best fits within their overall strategic plan. Information resources and learning opportunities continue to expand based on member-demand. Recent content additions include a webinar on post-secondary education attainment and new Chamberpedia resources related to the Common Core State Standards.

EDWD Co-Chairs: Dan Colantone, Greater Akron Chamber and Ralph Schulz, Nashville Area Chamber Staff Liaisons: Alysia Bell and Jessie Azrilian

Government Relations Division/Policy Clearinghouse The division’s monthly peer conference call for October was hosted jointly with the Council of State Chambers and featured guest speaker Erskine Bowles, co-author of the bipartisan Simpson-Bowles Budget Plan. Also, staff and members will gather in Houston Dec. 8-10 for the 3rd annual Metro GR Round Table - Dec 8-10 in Houston.

Division Chair: Rob Bradham, VP - Public Strategies, Chattanooga Area Chamber Staff Liaison: Chaaron Pearson

Membership Development Division ACCE new hire, Min Lin, will take of the management of this division. Min will be receiving training from Crystal Moore and start her responsibilities to the division immediately. The division e-newsletter will be sent out the first week of November. Division Chair: Tim Giuliani, CEO Gainesville Area Chamber of Commerce Staff Liaison: Crystal Moore and Min Lin

Community Peer Group Report The uniting factor for Community Peer Groups is either community size and/or regional economic focus.

Each of the five Community Peer Groups has participation criteria. Membership is generally open only to the

organization’s top executive.

Metro Cities Council

Changing faces continues to be the dominate theme for the Metro Council. 18 out of 76 CEO members

either started or announced retirement in the past 12 months. All the new faces means the small group

roundtables have never been more important. 2014 meetings are January 22-24 in Austin and March 26-28 in

Boston.

Chair: Joe Roman, CEO, Greater Cleveland Partnership Staff Liaison: Ian Scott

Major Cities Council Because of community growth, chamber growth and career changes, the Major Cities Council has welcomed several highly-respected, long-standing ACCE leaders to its ranks over the past year including Betty Nokes, Kelly Hall, Dave Hauser, John Cox and Nancy Keefer. The council hopes that many new members will be able to make the roundtable meeting meet in Sarasota, Jan 19-21. They are also planning a May meeting to investigate the role of millennials in the chamber, community, and politics. Details and registration available soon.

Chair: Eddie McBride, President and CEO, Lubbock Chamber of Commerce Staff Liaison: Ian Scott

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Emerging Cities Council The Emerging Cities CPG members continue to build camaraderie and share valuable information using their invitation-only Google Group. Recent exchanges focused on: producing dashboard metrics for board meetings, local issue policy agendas, and HR policies and procedures. One council member found the group archives helpful when exploring membership software options at a new chamber. In the archives she found a ready-made list of her colleagues using the software vendors her new chamber was considering.

Chair: Linda Rabe, CCE, President and CEO, Rapid City Chamber of Commerce Staff Liaison: Tamara Philbin

Hometown Chambers Council The Hometown CPG continues to grow with 53 member CEOs and their online engagement is steadily increasing. Members gathered in Oklahoma City to strategize key directives for this new group and have begun to target topics for upcoming webinars.

Council Chair: Dennis Houston, IOM, President and CEO, Norfolk (NE) Area Chamber Staff Liaison: John Carlson

Submitted by Ian Scott, VP of Communications and Network Crystal Moore, VP of Professional Development & Convention

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Communications Report Centennial Celebration 2014 is ACCE's 100th year. To celebrate the milestone we're planning a multi-channel marketing campaign that will launch in early January and roll out in stages through the annual convention in August. Besides marking the anniversary, campaign goals are: 1) better market ACCE's core value and services to members, and 2) highlight/celebrate member chambers' accomplishments over the past century. We've retained a marketing firm to help conceive and stage the campaign. Organizational Brand/Name At the last in-person board meeting in Oklahoma City we opened the floor to discussion about ACCE's name and corporate brand. We've solicited and received lots of input since then, including results from a structured phone survey. As you'd expect, opinions about specific parts if the brand/image/name question are mixed. But consensus is emerging around a few key points:

At 12-years-old, the current mark is looking dated and nearing the end of its useful life.

The ACCE acronym has recognition and credibility worth preserving.

Adopting the term "Association" increases clarity about the organization's mission.

Removing the geographic descriptor "American" is low risk and may reduce role confusion. Armed with these conclusions, we set hired marketing consults loose to interview members and staff and develop fresh brand concepts for ACCE. Staff will present several options at the board meeting and hope to introduce a new look in January in conjunction with the start of our centennial year. Revenue Model White Paper The highly-anticipated, long-awaited revenue model white paper is nearly complete. More than 40 chamber execs were interviewed in the process. We will distribute to board members a print version of what will be an e-book PDF that members can download. Financial support and content advice for this project from WACE has been extremely helpful. Staff are working with several prospective sponsors to help defray production cost, primarily time for our contract researcher/writer Katherine House. Submitted by Brad Holt, Director of Communications

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Information and Research Report (HERO)

Salary Survey

We are just finishing a major promotion of our Salary Survey. The purpose of this promotion is to insure that we have enough accurate and updated data for a new Salary Survey e-publication that we plan to have for sale in December. Chambers can take the salary survey at any time, so even if you did not participate during the month of October, we would still like you to participate as soon as you can. Operations Survey For the 2013 Operations Survey cycle, the HERO team has prepared 26 Customized Operations Survey PowerPoint Presentations for ACCE members. We are continuing to offer these customized reports through the year. They are a great way for chambers to use the Operations Survey for board & staff retreats, planning sessions, and preparing for 2014. Email HERO@acce.org with any questions or to order the customized presentation. The 2014 Operations Survey cycle begins in February, so please mark your calendars.

Online Resources

Aggressive updates to ACCE’s online resources continue. Since August 1st, 100 new documents have been

added to the Samples Library (including many new position descriptions) and nearly 200 new links added to

our Chamberpedia pages. A great way to get involved is to submit content, helpful websites and resources,

and new policies or plans in place at your chamber.

HERO

A new HERO column was launched in the Fall 2013 issue of Chamber Executive magazine. This

column will highlight frequently asked questions and will provide an in-depth look at the research

resources we use to answer members’ questions. We also have a new HERO blog to keep you up-to-

date on HERO resources on the web.

The HERO Team gave 10 Webinar tours of HERO & ACCE resources in September and October. We will continue to promote and offer the live webinars. We are also working on a recorded tour that ACCE members can access 24/7. Email HERO@acce.org to schedule a webinar.

AskACCE is a free service to ACCE members, and is staffed by our Co-Directors of Information & Research. It is common to receive over 100 questions per month. We answer every question or provide resources to help our members within 48 hours, most much sooner.

We are continuing to offer Custom Research and Services for a fee. For any research that takes more than 30 minutes, there will be a fee to support our HERO team.

Submitted by Audrey Imhoff and Sarah Myers, Co-Directors of Information & Research

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Revenue Report Overview Things have not changed greatly from the bright outlook reported to the board about seven weeks ago. Corporate and foundation interest in ACCE remains strong; membership is tracking slightly ahead of budget. Foundation Support As previously reported, Lumina Foundation has provided a nearly $2.3 million grant to the Community Growth Educational Foundation (the foundation associated with ACCE) for implementation of post-secondary education promotion initiatives over a period of about four years. The initial payment in excess of $1 million has come through. Our work with the Hewlett Foundation continues to move forward. We are exploring opportunities with other foundations and the Robert Wood Johnson Foundation has asked for a proposal from us. In addition, Pew has asked us for a proposal to renew our work there for three years, not one. Corporate Support American Express, Neustar, and Global Classroom are some of the new official corporate sponsors with which ACCE is working. Five or six other companies are talking with us about the possibility of similar relationships. We are likely to come to terms with more than one of them, but are taking our time with due diligence and making sure these firms have a good chance to be a fit for our members. Currently ACCE corporate support revenue trails the budget, but based on expected contract renewals and new business, we expect to beat the budget, perhaps handsomely, by the end of the fiscal year. Membership Membership revenue was $635,000 in the first half of the fiscal year, 2 percent ahead of budget and on track for a total for the year of $1.27 million. ACCE has been treading water at the roughly $1.2 million membership revenue level for a while and it appears we’re starting to move beyond that level. The reason is partially from a modest dues increase, which is starting to kick in, but also significant new-member acquisition, aided by ACCE Revenue Development Officer Dana Ketterling. Dana is bringing in roughly 200 new members per year, enough to replace our losses from attrition and then some. (ACCE has roughly a 90 percent renewal rate on about 1,480 members, of which about 1,220 are chambers of commerce.) Dana and ACCE are helped when board members make membership pitches for us. And one of the best is Pat MulQueeny of Eden Prairie, Minn.. Pat has helped us with several key wins in Minnesota and beyond. Be sure to congratulate him – and to ask him how he did it! Submitted by Chris Mead, Senior Vice President

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Finance Report

Balance Sheet

Cash is strong in CGEF ($1.2 million), primarily because of receipt of an initial payment for a four-year

Lumina Foundation program on post-secondary education. However, much of this money will be

transmitted to ACCE’s partner in the program, the Los Angeles Area Chamber of Commerce and its

associated foundations.

Pledge Receivable – This line item is the total amount of revenue yet to be received from written pledges

for the ITT campaign through September 30st. Please note that we are in the final year of the ITT campaign.

Due from related entities - This is the amount owed to ACCE from FBI and CGEF for ordinary

operational expenses and consulting. Please note that these amounts have been reduced since the September

statements due to a quarterly payments made against the balance by FBI and CGEF.

Deferred Other – Included in this line item is the amount related to the CGEF grant from Lumina totaling

$1.176 million. We can’t include this amount as revenue on the Consolidated Statement of Activity until

certain portions of the work has been completed. As of September 30, 2013, ACCE’s consolidated net asset

balance is going strong at $3.5 million.

Consolidated Statement of Activity

Annual Convention has a net loss of $31k. The revenue for the convention came in strong but not as high

as predicted; instead, sponsor revenue came in as official corporate sponsorship (which is not reflected at all

in convention revenue). As in past years, the event would have made money if annual sponsor revenue

allocated to convention was reflected on the financials.

Membership Revenue – is going strong and is $13k (2%) higher than budget and we anticipate that we will

keep the momentum going!

National Sponsorship – Official corporate sponsor revenue normally does not look that great this time of

year because we book the revenue when it renews (typically in January). But this year, several major new

official corporate sponsors have come on board recently, including American Express, Neustar, and Global

Classroom. This category of sponsorship appears to have great promise for the rest of the year.

Chamber Education Expense has experienced an increase in salary allocations due to the following

unbudgeted professional development initiatives:

Chamber Executive Leadership Program (ELP) - Coming to ACCE is an exclusive leadership

program for ACCE members. The ACCE Chamber Executive Leadership Program (ELP) is based

on the Duke Leadership Program offered by the Fuqua School of Business at Duke University,

delivering a customized, in-person three-day session plus six months of follow-up with 1:1 executive

coaching and peer learning sessions.

Track Packs - We launched a new post-convention product call Track Packs which gives those who

did not attend the convention a valuable educational experience focused on specific interest areas.

Track Packs include video (if available), presentation visuals, audio and support documents.

Bottom Line

ACCE currently has a deficit bottom line but this is primarily attributed to expenses related to the ITT

campaign. Please note that the revenue from the campaign was included in the previous fiscal year.

10/29/13 American Chamber of Commerce Executives JC-09CONSBS

12:34 PM Consolidated Projects Page 1

For the Six Months Ending September 30, 2013

ACCE FBI CGEF Eliminations CONS

Consolidated Balance Sheet

ASSETS

Cash $73,603.03 $348,043.94 $1,260,559.27 $1,682,206.24

Investments 386,021.79 386,021.79

Investment in Subsidiary 422,412.23 422,412.23

Accounts Receivable - General (net) 224,892.82 132,489.38 357,382.20

Accounts Receivable - Trust 239,215.10 239,215.10

Grant Receivable 25,103.42 25,103.42

Due from Related Entities 499,390.12 (499,390.12) 0.00

Pledges Receivable 76,646.60 76,646.60

Prepaid Expenses 43,913.48 11,527.52 55,441.00

Prepaid Expenses - Convention 76,408.10 76,408.10

Deposits 28,001.75 975.00 28,976.75

Fixed Assets, Net 172,806.56 63,318.56 236,125.12

------------------------- ------------------------- --------------------------------------------------- -------------------------

TOTAL ASSETS $2,004,096.48 $795,569.50 $1,285,662.69 ($499,390.12) $3,585,938.55

============== ============== ============================= ==============

LIABILITIES

Accounts Payable & Accrued Expenses 83,111.88 27,838.46 110,950.34

Accounts Payable - Trust 32,229.90 32,229.90

Due to Related Entities 286,921.74 212,468.38 (499,390.12) 0.00

Deferred Dues 371,861.56 800.00 372,661.56

Deferred Other 39,639.99 8,163.00 1,176,047.64 1,223,850.63

Deferred Rent 0.00 0.00

Deferred Convention 0.00 0.00

Capital Lease Obligations 62,800.00 62,800.00

------------------------- ------------------------- --------------------------------------------------- -------------------------

TOTAL LIABILITIES $589,643.33 $322,923.20 $1,389,316.02 ($499,390.12) $1,802,492.43

NET ASSETS

Net Assets - Unrestricted 1,434,300.94 422,410.14 (113,827.84) 1,742,883.24

Net Assets - Temporarily Restricted 59,516.55 17,409.00 76,925.55

YTD Change in Net Assets (79,364.34) 50,236.16 (7,234.49) (36,362.67)

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TOTAL NET ASSETS $1,414,453.15 $472,646.30 ($103,653.33) $0.00 $1,783,446.12

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TOTAL LIABILITIES & NET ASSETS $2,004,096.48 $795,569.50 $1,285,662.69 ($499,390.12) $3,585,938.55

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American Chamber of Commerce Executives

Consolidated Statement of Activity

For the Year to Date Period Ending September 30th, 2013

2013-14 2013-14 2013-14

Actual vs.

Budget YTD

Actual vs.

Budget YTD

YTD ACTUAL YTD Budget Annual Budget $$ Variance % Variance

FBI Total FBI Revenue 521,909.24 521,572.50 1,043,145.00 336.74 0%

Total FBI Expense 471,673.08 497,973.48 995,946.95 (26,300.40) (6%)

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FBI Net Income 50,236.16 23,599.03 47,198.05 26,637.14 6%

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CGEF/ARS Total CGEF/ARS Revenue 158,002.56 679,164.50 1,358,329.00 (521,161.94) (330%)

Total CGEF/ARS Expense 165,237.05 615,088.50 1,230,177.00 (449,851.45) (272%)

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CGEF/ARS Net Income (7,234.49) 64,076.00 128,152.00 (71,310.49) 986%

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ACCERevenue

Annual Convention 739,097.50 794,000.00 794,000.00 (54,902.50) 0%

Awards/COY Revenue 9,365.00 15,000.00 30,000.00 (5,635.00) (60%)

Certification 250.00 0.00 12,700.00 250.00 0%

Chamber Education 0.00 0.00 36,920.00 0.00 0%

Chamber Executive Magazine Rev 69,296.52 71,120.00 142,240.00 (1,823.48) (3%)

CPG 0.00 1,125.00 2,250.00 (1,125.00) 0%

Talent Search 9,122.18 7,500.00 15,000.00 1,622.18 18%

Membership Revenue 635,096.27 622,000.00 1,244,000.00 13,096.27 2%

Metro Cities Revenue 9,090.00 25,875.00 51,750.00 (16,785.00) (185%)

Misc Income 843.06 500.00 1,000.00 343.06 41%

National Corporate Sponsors Revenue 106,575.00 121,560.00 243,120.00 (14,985.00) (14%)

Publications & Research Revenue 5,898.85 5,500.00 11,000.00 398.85 7%

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Total ACCE Revenue from Operations 1,584,634.38 1,664,180.00 2,583,980.00 (79,545.62) (5%)

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Expense

Admin (Operations, Occupancy, Governance) 217,924.64 255,432.25 510,864.50 (37,507.61) (17%)

Admin Personnel Costs 215,932.07 246,462.91 492,925.82 (30,530.84) (14%)

Annual Convention 769,786.70 764,484.37 764,484.37 5,302.33 0%

Awards/COY Expense 10,382.90 19,988.41 39,976.82 (9,605.51) (93%)

Certifications Expense 9,211.27 14,034.48 28,068.95 (4,823.21) (52%)

Chamber Education Expense 16,453.65 11,113.53 22,227.05 5,340.13 32%

Chamber Executive Magazine Expense 37,862.32 53,137.80 106,275.59 (15,275.48) (40%)

Divisions Expense 20,513.70 18,389.68 36,779.35 2,124.03 10%

CPG Expense 3,040.42 5,107.31 10,214.62 (2,066.89) (68%)

Membership Expense 151,188.12 206,928.51 413,857.01 (55,740.39) (37%)

Metro Cities Expense 34,468.56 33,972.63 67,945.25 495.93 1%

National Corporate Sponsors Expense 29,706.87 37,070.05 74,140.10 (7,363.18) (25%)

Publications & Research Expense 11,852.01 9,541.84 19,083.68 2,310.17 19%

Web Expense 18,811.22 24,170.31 48,340.62 (5,359.09) (28%)

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Total ACCE Expense from Operations 1,547,134.45 1,699,834.05 2,635,183.73 (152,699.60) (10%)

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ACCE Net Income * 37,499.93 (35,654.05) (51,203.73) 73,153.98 195%============= ============= ============= ============= =============

Total ACCE & Affiliates Revenue 2,264,546.18 830,909.00 4,985,454.00 1,433,637.18 63%

Total ACCE & Affiliates Expenses 2,184,044.58 810,217.95 4,861,307.68 1,373,826.63 63%

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Total ACCE & Affiliates Net Income 80,501.60 20,691.05 124,146.32 59,810.55 74%============= ============= ============= ============= =============

In This Together (ITT) Revenue 2,364.00 5,833.33 35,000.00 (3,469.33) (147%)

In This Together (ITT) Expense 119,228.27 35,360.26 212,161.56 83,868.01 70%

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ITT NET Income (116,864.27) (29,526.93) (177,161.56) (87,337.34) 75%

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