|August 8, 2011|
|PRSA Has $312K Loss in Q2|
|By Jack O'Dwyer|
|PR Society of America posted an operating loss of $312,797 for the second quarter of 2011 as expenses totaled $2,890,160 and income totaled $2,577,363.|
The Society, whose CFO is Phil Bonaventura, only posted second half results on its website today, an accounting trick that hides Q2 performance. Results for Q2 were obtained by subtracting Q1 results from first half figures.
Income for the first half rose $180,543, or 3.7%, to $4,984,187 while expenses rose $143,592 or 2.87% to $5,139,299.
PRS had reported revenues of $2,406,824 in Q1 and expenses of $2,249,139.
There was an operating loss of $155,112 for the half which was offset by profit of $84,671 from the sale of stocks, resulting in a net loss of $70,441.
PRS had $1,168,883 in common stocks as of Dec. 31, 2010 plus $749,385 in corporate bonds and preferred stocks.
With the stock market currently in shaky condition, members are worried about a repeat of 2008 when PRS lost $396,057 in the market.
Results Posted But No Story
The results have only been posted in a members-only area of the Society website from which reporters are barred.
Members in PRS e-groups say this website is acting unethically in reporting information meant for members only, but we don't agree.
PR reporters need access to financials of the Society, including the audit, if they are to report adequately on its performance.
J.R. Hipple, a member of the committee studying the need for a $30 dues hike, told a PRS teleconference last week that the Society "desperately needs" the hike so that it can "continue to lead the industry."
The Society best serves the industry, he said, "by serving its own members." Chapters are having a tough time renewing members and especially the "grey hairs," he added.
The committee said PRS now faces stiff competition in offering seminars and webinars whereas it once had a lock on such training vehicles.
Presidents of PRS's 50 biggest chapters have been asked if they intend to let their members vote on whether they want a dues hike. So far none has responded.
They have been given a link to the Cornell website that offers free, secure voting via e-mails.
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