|Fri., Oct. 25, 2013|
|PRSA Posts $467K Operating Loss for 9 Months|
|By Jack O'Dwyer|
|PR Society of America has posted a $466,869 operating loss for the nine months ended Sept. 30.|
Sale of investments at a profit of $177,250 cut the loss to $289,619.
The Society had boosted dues $30 in 2012 in a move to cut the losses but is still operating in the red.
Total income for the nine months was $7,333,049 but expenses were $7,799,918 including $4,081,079 in salaries and fringes, the biggest expense item.
The operating loss for the same period in 2012 was $357,496.
Cash has grown to $7,168,197 from $6,277,782 at the beginning of the year but includes $2,076,726 in unearned revenue.
The Society’s annual conference starts tomorrow in Philadelphia when the Assembly will meet for a half day session. The only item on the agenda besides the election of officers and board is removing the title of CEO from a member of the Society and giving it to William Murray, who has been president and COO since 2007.
Joseph Cohen of MWW Group will serve in 2014 with the title of chair.
The title switch is a first for the Society. Leaders including Cohen have said that the change only reflects the way the Society has been governed in the past few years and is not a “real” change.
Dues income was $4,416,475 vs. $4,327,579 for the same 2012 period, a gain of $88,896.
Net assets are $3,864,332 vs. $4,153,951 as of Dec. 31, 2012. The Society counts as assets virtually all of its dues income except for a small portion ($322,035) allocated to its two publications, Tactics & Strategist.
Deferring about half its dues income would cut net assets by at least $2 million.
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|Stephanie Cegielski, VP of PR for PRSA (Oct. 31, 2013):|
Jack: Once again your editorial/reporting on PRSA misses the mark. As we already informed our members both on our blog and during our recent Leadership Assembly, our financial results for the first nine months of 2013 are better than budget; the operational deficit you report as a "loss" is simply due to the fact that we incur conference expenses before we realize income from Conference, something we plan for every year.
You've also incorrectly interpreted our investment gains - they are not the result of a sale of securities, but the result of gains from our investment portfolio.
A more accurate and complete picture is that we have met or exceeded our budgeted goals for each of the past six years, which has enabled us to significantly grow our net assets. We again expect to meet or exceed those goals for 2013. I invite anyone who may be interested in learning more to read about the numbers for themselves on our web site.