Why does AMIA need new fundraising capabilities?
Because we want to continue our essential services, such as
- annual conference
- scholarly journal
- newsletter
- directory
- website
- scholarships and fellowships
- Board and committee meetings
- professional development
And pursue new projects that fulfill our mission, such as
- book publishing
- enhanced web presence
- international outreach
- public advocacy
- regional professional development events
- job board
- special events and screenings
- increased staffing (to support all of the above)
AMIA can do these if we (1) update our organizational structure to reflect our maturation as a profession and (2) adapt to the growth of our field into digital technologies.
AMIA has been increasingly active over the past five years. We have expanded our role in the national and international communities and have continued to grow and expand our programs and essential services such as the annual conference, the journal, scholarships and fellowships, professional development and our Board and committee meetings. Our committees and Board are pursuing new projects that fulfill our mission; in addition, the membership has delivered a mandate to further international activities and broaden our role in the areas of education, access, and emerging technologies.
During the same five years, AMIA’s costs have risen substantially while combined income from membership dues, conference fees, and sponsorships has remained flat. AMIA’s expenses have increased as well, due to our expanded leadership roles and programs. New programs are exciting, but we are unable to pursue them without funding. Like any non-profit organization, generating income and fundraising is an ever-increasing priority.
AMIA has traditionally relied very heavily on sponsorship income. Our sponsorships have come from the traditional film and video post-production and film laboratory sector. They have been crucial to AMIA’s success. Yet, it is critical that we expand and diversify our revenue sources as emerging technologies continue to impact our traditional sources of support. The Board intends to create a culture of philanthropy within AMIA.
For the last three years, AMIA had projected deficits. Through opportunity and unique circumstances the organization was able to avoid deficits. Still, the underlying structural factors remain. This year, AMIA has a projected deficit of $113,000, which represents 30% of our reserves. If increased fundraising is not addressed in the near term, member benefits and services will need to be cut. In the longer term, continuation of the status quo will risk AMIA's marginalization. The AMIA Board has taken a number of important steps to address these issues, the most significant of which is the selection of an Executive Director with a considerable role to play in fundraising. The next step is expansion of the AMIA Board.
Why do we need a bigger Board?
An expanded Board is required to meet the fundraising responsibilities necessary for our survival and growth and to handle the increasing workload of a growing organization. To survive as a non-profit, it is necessary to compete for philanthropic funds. This requires a Board with diverse expertise, more financial resources, and a broad network of contacts.
How does a larger Board benefit the Association?
A larger Board will allow AMIA to expand its scope to meet our critical development needs while maintaining our current level of services and activities. A larger Board will allow us to build strategic alliances with persons and organizations beyond our existing environment to ensure the health and longevity of AMIA. This expansion is required if we are to survive, prosper, and grow.
But doesn't AMIA have significant cash reserves?
AMIA's assets include our cash reserves, restricted funds (such as the scholarships), and the current checking account balance. AMIA's cash reserve account is $350,000, approximately one year of Association expenses. Should we not succeed in additional fundraising, our projected budget will reduce our cash reserves by 30%.
What about our membership revenue?
Membership numbers have held steady, but AMIA's dramatic growth of the 1990s has reached a plateau in the last five years. Individual membership has hovered between 559 and 610 during that time. That is an 8% increase over five years, or a 1.6% increase per year. With inflation, we are falling further and further behind.
What about our sponsors?
For five years, conference sponsorship has held between $94,000 and $125,000, a 6% increase over five years, or 1.2% per year, which means we are falling substantially behind the inflation curve. Sponsorship funding for the conference has relied heavily on the development efforts of a single member who has generated half of all sponsorship funding. AMIA has depended almost exclusively on a loyal, core group of sponsors from the traditional film and photochemical lab sectors, yet as film preservation moves into the digital arena, giving in this area has reached a plateau. It is predicted that support from this sector, in its present form, will continue to decline. We must diversify our fundraising sources.
What about new sponsors?
This initiative will improve out ability to increase our fundraising potential by drawing new sponsors from allied fields. Emerging digital technologies are impacting our traditional sources of support. We must expand our leadership network to reach beyond the immediate AMIA member community for greater visibility and support.
Why not raise membership dues or conference fees?
The AMIA Board is committed to maintaining affordable fees for all members. Raising membership dues or conference fees will exclude significant constituencies from participation. To put things in perspective, a per-member annual dues increase of $175 (from $75 to $250) per member for membership dues would be required to address the projected deficit, and this would likely result in a drop in membership.
How will a larger Elected Board be integrated into the current election cycle?
Two new Board positions will be added to the slate of candidates in 2006. The Secretary, Treasurer, and three Directors will be elected to two-year terms; a fourth Director will be elected to a one-year term, to allow for returning in 2007 to the current system of staggered terms of office. (Five Board members elected in even numbered years, four in odd numbered years).
What is a Director’s job description?
There is a job description for members of the Board on the AMIA website at http://www.amianet.org/home/board/guide.pdf. In addition, officer duties and the powers of the Board are outlined in the Bylaws.
What is a Designated Director?
A Designated Director is one chosen through a vote of the full Board to serve the membership and organization by bringing financial, professional, and economic resources and skills underrepresented on the Elected Board. AMIA will seek Designated Directors who can assist in effectively garnering the resources to assure the longevity and health of the organization and to remain competitive in the fight for increasingly scarce philanthropic dollars.
We know AMIA needs to stabilize its funding situation, but we also know we need to do more to engage with the public. AMIA has had difficulty accomplishing these goals. The idea of the Designated Directors is rooted in accomplishing both. The Board has not identified particular individuals but does have a type of person in mind: one who comes from outside of the AMIA membership and has an interest in preservation or archival issues. This person might have financial or public contacts that would benefit AMIA ¾ contacts we do not currently reach.
How will Designated Directors be selected?
There will be a process to search for Designated Directors using specific selection criteria. They will join the Board through a vote of the full Board and will serve one-year, renewable terms. They will be asked to become AMIA members and maintain their membership throughout their term. Currently, we are seeking member support in creating a structure for the Board that will permit the appointment of Directors. However, the cultivation and appointment of Designated Directors will take time. Appointments certainly will not happen without the careful deliberation and discussion for which AMIA is known.
Why can't we look to our membership and our Board for fundraising?
Fundraising is not a core component of what most AMIA members do in their professional lives. Most members, as working professionals, have limited contacts outside of our field ¾ not only philanthropic contacts but contacts with people who have a wider influence and can ask others to assist in our endeavors.
In an environment where nonprofit organizations compete for limited dollars, fundraising is a profession of its own. AMIA made the decision to hire a leader with the experience and expertise in this area that we need as an organization. It is the judgment of the Executive Director and the Board that AMIA needs to strengthen its hand by expanding our influence. This Board Expansion Initiative will do that.
If Designated Directors are more likely to be major contributors, would that increase the likelihood of a conflict of interest? What would prevent that?
When designating directors, the Board will carefully evaluate candidates (much as the Elections Committee has always done when vetting AMIA’s annual slate of nominees). The Board will only appoint individuals clearly committed to AMIA’s mission and goals. A Designated Director’s potential for conflict of interest is no greater than an elected director’s.
Also, the proposed Bylaw amendments provide an additional safeguard: the Board may remove a Designated Director by majority vote.
Why are Designated Directors granted a vote?
They are legally liable for all decisions of the Board. Second, the right to vote is an important component in recruiting the best caliber of directors. Talented board members are heavily competed for in the non-profit community. Third, a vote accords respect for the ideas of those who bring their considerable resources to AMIA. They will be granted the respect of a vote if they choose to join another organization’s board of directors.
Why not appoint a separate fundraising board (an "Advisory Board")?
Recruiting others to do our fundraising as an "advisory board" is not feasible at this stage of AMIA's evolution. It will be a challenge to gain board members who will be effective and garner resources. The entire Board of Directors -- elected members and Designated Directors -- will work with the Executive Director on fundraising activities. All Board members are responsible for development.
What are Board members' financial obligations? Is there a standard commitment?
Each Director on the current Board has made a personal financial contribution to AMIA this year (a 'first' for the organization). By so donating, Board members demonstrate individual commitments to the Association. When all Directors participate in this collective commitment to giving, AMIA's Board reaches a critical threshold dictated by grant funders. Further, Board members can better solicit donations when they have made a commitment themselves.
The standard commitment will not be the same for Elected and Designated Board members. The Executive Director will determine an appropriate level of support required by Designated Board members and recommend that level to the Board.
Why are we moving quickly to get this done now?
AMIA Boards and committees have been discussing and addressing these concerns for several years. Now we are implementing.
The 2006 budget projects a loss of $113,000. Unless AMIA achieves additional fundraising, this will utilize 30% of AMIA's cash reserves. Components of a successful strategic development plan may take months and even years to see results. If fundraising is not addressed in the near term, member benefits and services will need to be cut. In the longer term, continuation of the status quo will risk AMIA's marginalization or even, eventually, dissolution
How critical is this change?
Building our fundraising through an expanded Board -- and training of the Board in fundraising -- is essential to our organization’s future. Your support for this initiative may well determine whether AMIA continues an era of leadership and growth or faces marginalization. The Executive Director and the Board intend to create a culture of philanthropy within AMIA. We can then better fulfill the mission we were founded to pursue.
Doesn’t this initiative require 2/3 of the membership to pass a Bylaws change?
Yes. If the AMIA Board is to include Designated Directors, 2/3 of the membership must approve a Bylaws change. That’s not just 2/3 of the membership voting, that’s 2/3 of the membership approving. Because of the critical importance of this vote, we are implementing online balloting.
How can I get more information?
The Board is planning a full education campaign to explain the history, rationale, and ramifications of this proposed change. A series of conference calls, face-to-face meetings, email updates, the Members Update blog (http://amia.typepad.com/members), the AMIA website, and Newsletter articles will give members the opportunity to learn more and to speak directly to the Executive Director and the Board about this topic. Watch your email for announcements.
What can I do to help?
For this initiative to pass, the entire membership must become informed and VOTE. If AMIA’s leadership, services, and financial future are important to you, please contact your colleagues to enlist their support and their vote.
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