PR Society of America reported a net loss of $651,270 for the eight months ended Aug. 31 as income of $6,070,516 was exceeded by expenses of $6,721,786.
Biggest expense by far was salaries/fringes, which rose 5.3% to $3,657,353 or 60.2% of income.
Next biggest expense was “supplies,” which rose 23% to $694,254. There is no explanation of what constitutes “supplies” or what caused the increase.
Occupancy costs (rent, utilities and maintenance) rose 7% to $572,212.
Marketing was up 53% to $336,936 from $220,035.
The figures were posted on the Society website in the member area. Non-members including press do not have access to the figures unless members supply them.
No story or explanation accompanies the figures.
Delegates have been told that a nine-month report will be distributed just before the start of the Assembly on Saturday which will vote on a $30 dues jump to $255.
Society leaders are again withholding IRS Form 990 from the delegates. Originally due to be filed on May 15, it contains pay/benefits of the eight highest-paid staff members, legal expenses, stock trades and other information not in the audit. Extensions can be sought until Nov. 15.
Last reported pay/benefits of the PRS executives is for 2009.
Leaders have refused to provide details of a new three-year contract for COO Bill Murray starting in January. His pay/fringes package in 2009 totaled $373K
Income up 1%, Expenses up 4%
While income rose 1% to $6,070,516, expenses rose 4% to $6,721,786.
The Society drew $25,000 from “reserves” and added $4,000 from “investments” to achieve a loss of $622,270 “after investments.”
The loss after investments for the 2010 period was $424,383.
Dues income rose 1% to $3,496,492. “Registration” declined to $975,471 from $1,020,754. It could include annual conference fees as well as fees for seminars and webinars.
Advertising revenues grew 31% to $337,675 while sponsorship declined to $510,288 from $575,105.
Net assets as of Aug. 31 were $2,807,767, a decline of 18% from $3,455,037 a year earlier.
Lower Total Income Feared
Some members fear the dues increase may result in overall lower income because of non-renewals.
Chapters have stressed in the delegate e-group that their members are already sending almost five times as much to national as they do to their local chapters (chapter dues average about $55).
The Assembly, according to the agenda mapped out by leaders, is to discuss the dues hike in the morning after an hour and 15 minutes of presentations by leaders and staff and then split up into about 30 “roundtables” that will discuss what chair Rosanna Fiske calls are five “hot” topics—value of PR, strategic planning, measurement, social media, and integrated marketing.
The discussions will start at lunch at 11:45 a.m. and continue until 3 p.m.
The Assembly will reconvene and the 30 groups will report their conclusions and recommendations.
Fiske is to preside over a discussion of the results that is to run from 3 to 4:30 p.m. A PRS Foundation “Update” will be presented from 4:30-4:40 by Debbie Mason, president, and a town hall is set for 4:40 to 5:30.
Delegates will vote at the start of the Assembly on adopting this agenda. Once adopted, a two-thirds majority is needed to make any changes.