Florida State Conventionafaflorida.org/meetings/2017 State Convention... · • Leveraging lease...
Transcript of Florida State Conventionafaflorida.org/meetings/2017 State Convention... · • Leveraging lease...
Florida State Convention
Denise Hollywood
July 2017
• EVP Role (ie - What keeps me up at night!)
• Current Revenue Initiatives
• Mitchell & IT Update
• Help Needed
• Thank you State of Florida !
Agenda
Larry Spencer
President
Frank Zaborowski
Rachel Zimmerman
Rebecca Dalton
Emily Rauer
Gamail Mohammed
Lisa O’Loughlin
Melissa Thayer
Doug Birkey
Mason Carpenter
Nicole Kirsch
Abby Gillett
Peter Huessy
Marc Schanz
Barb Taylor
Denise Hollywood
Executive Vice President
Resa Lewis Amanda Grandel
Katie Storm
Henry Sanders
Member & Field
Sharon Kayira
Member Relations:
Janee Williams
Virgie Garzon
Erika Salesses
Field Relations:
Nia Reeves
Airmen & Family
Programs:
Whitney Distaso
Alex Edgar
Aerospace Education:
Christine Brown
Brian Everstine
June Kim
Juliette Kelsey
Eric Lee
Elizabeth Moore
Amy McCullough
Frances McKenney
John Tirpak
Mike Tsukamoto
Chequita Wood
Wilson Brissett
Gideon Grudo
Bridget Dongu
McKinnon Pearse
Nate Davis
Alexandria Browning
Jeneathia Wright
Adiam Habte
Danielle Hawkins
Donna Lang
Diane Rowan
IST: Isaiah Taylor
Ed Cook
Mike Davis
David Huynh
Chris Saik
Ted Yorkshire
StellarXplorers
Alex Edgar
Manager
Executive
Services &
Board Support
Amalia Otero
Manager
Mitchell
David Deptula
Dean
CyberPatriot
Bernard Skoch
Commissioner
Finance
Joe Stangl
Chief Financial
Officer
jHR & Admin
Tonya Childers
Sr. Director
Government
Relations
Keith Zuegel
Sr. Director
Development
Wes Sherman
Sr. Manager
Corporate
Relations
Fred Ullman
Director
Meetings &
Events
Meghan
McClelland
Sr. Director
Member &
Field Relations
Kari Voliva
Vice President
Graphic Design
Zaur
Eylanbekov
Creative
Director
Publications
Adam Hebert
Editor in Chief
Communications
Chet Curtis
Sr. Director
Information
Technology
Falar Fatmi
Chief
Information
Officer
• 2017 Budget:
– $18M Revenue - $19.3M Expense = Budgeted LOSS of $1.3M
• 2018 Budget:
– President tasked by BOD to balance the budget
• “Savings” Account:
– ~ $10M balance
– If AFA continues to lose $1M a year, we could be out of business in 10 years
– BOD approved policy to ensure we have at least 6 months of operating
expense in the “savings” account ( = $10M)
Balancing the books
Change is necessary if AFA is to be sustainable in the future
2017 Revenue Plan - $1M
YTD 2017 Budget
Add’l Budget
Towards $1M
Revenue Increase
Total = Budget +
Additional BudgetYr End Forecast
Delta
Forecast vs Tot
Budget
Advertising 449,837 636,966 10,000 646,966 550,000 -96,966
Corporate Membership 258,500 560,000 10,000 570,000 500,000 -70,000
Exhibit Sales 3,107,660 2,650,000 200,000 2,850,000 3,130,000 280,000
Sponsorship - @ Conf 550,705 480,000 145,000 625,000 625,000 0
Sponsorships – Non Conf 27,000 0 50,000 50,000 50,000 0
Development 599,135 1,180,000 85,000 1,265,000 1,265,000 0
Aerospace Educ Sponsorships 0 10,000 100,000 110,000 50,000 -60,000
AFP Grants/Sponsorship 30,000 57,500 285,000 342,500 100,000 -242,500
Merchandise 5,138 2,500 15,000 17,500 17,500 0
Facility 732,834 1,755,000 100,000 1,855,000 1,755,000 -100,000
TOTAL 5,760,809 7,331,966 1,000,000 8,331,966 8,042,500 -289,466
2017 push – increase revenue by $1M
Background:
• Print media expected to decline between 10-30% over next 2 yrs
• AFA ad sales on steady decline
• New website (fall timeframe) will attract more digital advertisers but
digital does not generate as much revenue
Actions:
• RFP for new Ad Company
• Bundling with other military non profits for non-endemic advertisers
(Walgreens, etc)
• Native Ads
Advertising
BLUF: Ad revenue projection – RED
Corporate Membership Background: • 2017 CM budget = $570,000 (includes $100k stretch goal)
• Paid in full = 42 companies• Renewals in work = 43 companies • 2017 Yr End Projection = $500,000 (85 active corporate member companies)
Pipeline:• 39 companies expired within 12 months = $200K potential revenue• 88 companies expired between 2011-2015 = $424K potential revenue• 128 pure prospects
Actions: • Rescoped CM categories:
• Doolitte $8,000 (Companies with $ 1M - $ 50M Revenue)• Rickenbacker $5,500 (Companies with $50M - $300M Revenue)• Arnold $2,500 (Companies with > $300M Revenue)
• AFA President Letter • Sales & Marketing Plan
BLUF: CM revenue projection – RED
Exhibit Sales
Background:
• Projected to exceed budget by ~ $300K
Actions:
• Moving non profit booths off the main floor to capitalize on paying
customers
• Aggressive Sales & Marketing Plan using our exhibit partner, NTP
• AFA booth relocated by registration
• Evaluating ways to recoup “free registrants” food & beverage costs
beginning with AWS 2018
BLUF: CM revenue projection – GREEN
Sponsorships
Conference / Non-Conference
Background:
• Prior yrs - moderate focus on both conference and non-conference
related sponsorships
Actions:
• Restructured staff to put more focus on conference related sponsorships
• AFA Breakfast Series Sponsorships – 6 industry partners on board now
• Added additional conference sponsorships and bundled packages
• Corp Relations team leading up non conference sponsorships such as
70for70 sponsorship ($20K - Harris Company), sponsorship for Direct
Mail Pin
BLUF: Sponsorship revenue projection – GREEN
Development
Background:
• Majority of Development efforts focused on successful Direct Mail
Campaign
Actions:
• Wounded Airman Cycling Challenge (WACC): raised $56K
(Goal is to get more chapters doing a local WACC in 2018)
• 70th Coin backend premium: additional + $18K revenue vs budget
• Strategy to convert AFM donors to AFA: 160 Converted Donors = $4.9K
• “Daily Report” donation: $650
• Silent Auction / Text to Give campaign for ASC
• Contract for Capital Campaign in work
BLUF: Development revenue projection – GREEN
Aerospace Education
Sponsorships
Background:
• Historically, AEC program
expenses are ~ $400-
$500K per year
Actions:
• Goal: offset expenses
with a new revenue
stream
• Developed Sponsorship
Program to target online
and military-focused
education institutes
• Next target set: AAFES
vendors, etc
• Pitch Rolls Royce as
Platinum Sponsor
BLUF: AE revenue projection – RED
Airman & Family Program
Sponsorships
Background:
• Wounded Airman Program is
restricted
• Historically, WAP did not cover
overhead or staff expenses
Actions:
• Goal: offset expenses with a
new revenue stream
• Developed Sponsorship
Program to target non-DoD
companies such as medical &
pharmaceutical
• Grant increase from Airpower
Foundation
• SkyBall sponsorship
• Donations to AFP to cover
staff/overhead
BLUF: AFP revenue projection – RED
Merchandise
Background:
• Merchandise sales limited to Hangar Store
Actions:
• Airman for Life logo contest
• Increased merchandise offerings
• Airman for Life shirts
• 70th Anniversary items
• Using Ebay and Hangar Store until new website transitioned
then we plan to incorporate E-Commerce store
• Andrews AFB 70th birthday Airshow display • Selling merchandise at Andrews BX – August 2017
BLUF: Merchandise revenue projection – GREEN
Facility
Background:
• AFA owns the HQ building -- $5M mortgage
• Currently, 94% of building suites are rented
• 2 office suites for rent (4,000 sqft and 1,111 sqft)
• Potential for additional $127,000 in revenue if all suites rented
Actions:
• New leasing company on board as of Jun 2017
• New advertising strategy
• Leveraging lease with “Vago” for video production services
• New tenant on board – renovations required in 2017 – additional
revenue to be realized in 2018
BLUF: Building revenue projection – RED
$1M Revenue Plan
Non- Restricted
• Mindset on staff has shifted to revenue generation
• New Finance software system (Intacct) provides more user friendly
and timely reports so managers can focus on Budget vs Actuals
and course correct as needed
• Communications efforts now include marketing tactics
• Old: “Thanks for attending the AFA breakfast”
• New: “Thanks for attending the AFA breakfast. If you are not a
member, here is how you can join.”
• Updated Membership proposal in work for delegate vote during
Convention
BLUF: Projected to see approximately $600K in additional revenue to offset $1.3M loss
Mitchell InstituteEvents:
• Hosted over 30 events with 9 more scheduled in July and August
• 5 “Mitchell Hours” with defense leaders addressing specific aerospace
topics; 5 Space Breakfasts and 17 Nuclear Deterrence events on Capitol
Hill; two roundtable dinners with AF leadership; two media roundtables
Publications: • Published three new studies: America's Nuclear Backbone: The Value of
ICBMs and the New Ground-Based Strategic Deterrent; Desert Storm: 25
Years Later; Consolidating the Revolution: Optimizing the Potential of
Remotely Piloted Aircraft
• Released two policy papers and six forum papers
Other: • Lt Gen Deptula testified before the SASC Subcommittee on the topic of All
Arms Warfare in the 21st Century
• Featured in print, radio, and TV media over 45 times
www.mitchellaerospacepower.org
IT Update
• Implemented technology policies to include training and cyber security best practices
• Launched meeting software Vidyo
• Migrated email and file server to Microsoft cloud
• Enhanced Internet infrastructure to 200 Mbs
• Centralized email blast systems to Pardot (Salesforce App)
• Implemented Financial Management System i.e. Intacct
• Going live with the new Association Management System i.e. Salesforce in August
• New chapter portal will be launched later this year
• New website on Adobe platform for AFA and Magazine will be launched in first quarter of 2018
• New AFA App on Adobe platform will be launched in first quarter of 2018
User data testing key to IT transition success
• Individual Membership recruitment & retention
• Community Partner memberships
• Aerospace Education and WAP Sponsors to offset expenses
• Focused grass roots efforts
– Should chapters donate to another non-profit when the overall organization is in the RED?
– Can we better align our efforts such as Wounded Airman Cycling Challenge to capitalize on
the reach of our 200 chapters and 92,000+ members
• The future– Standardizing the AFA brand via website and tools
– Incorporating IT tools at chapter level
– Should smaller chapters struggling with membership become Communities of Interest/Virtual
Chapters?
Help Needed
Change is necessary if AFA is to be sustainable in the future
Thank you
Florida Chapters!