International Association of Business Communicators lost $529,073 in 2013 as revenues dipped $692,486. A loan of $250,000 was taken to fund a new website.
IABC usually does not release the audit until the annual general meeting June 24 in Toronto.
Members must wait until almost seven months after the close of the year to see the finances. IABC does not publish quarterly reports.
IABC released the report today following a report by Dave Murray who operates the writingboots blog. It showed revenues declined 10.8% to $5,666,483 from $6,350,927 in 2012.
Net assets declined 43.7% to $680,013 from $1,209,086. Its deferred dues account, representing services owed to members over the course of the dues year, was $1,499,364 or about half of dues income of $2,917,858. PR Society of America books almost all its dues as cash, bloating its net assets total by about $2.5 mllion. Less than $400,000 is allocated to delivery of its publications.
Christopher Sorek had resigned last June as executive director after less than a year on the job. He had fired 16 staffers shortly after arriving last year.
IABC sold some of its investments, used $100,000 of its line of credit, and took a loan of $350k for the new website, reported Murray.
General and administrative expenses grew 56% and board expenses, 25%.
Cash and cash equivalents were $42,172, a decline of $495,117. Investments totaled $2,045,162 vs. $2,627,995. "Intangible assets-net" were listed as $552,067 vs. $88,125. The intangible assets include $386,400 in website development which is "currently on hold due to a contract dispute," and $211,250 for software. IABC contracted with a company owned by an unidentified previous board member to provide interim staffing on internal and external communications activities. Total payments to Dec. 31, 2013, were $91,350.
Ann Lazarus was installed as a temporary COO while IABC sought a new person for the post.
IABC president Robin McCasland last June likened critics of the group to “dogs humping in the park.”
The group switched its bi-monthly magazine Communication World to web-only in 2013. It also discontinued its “Accredited Business Communicator” program and is working on a new designation based on principles of the Int’l Standards Organization.