On solid ground: NRPA works to meet financial challenges - NRPA Perspectives

Parks & Recreation, Oct, 2002 by David Lose

Like so many other nonprofit organizations, NRPA has experienced a tough year financially. There are a variety of causes for this, and some key solutions. Below I'll explain our situation and what we're doing about it, but I want you to know at the outset that your NRPA is as stable as ever and as committed as ever to our mission.

The slumping economy and the terrorist attacks on Sept. 11, 2001, have helped to create our current financial situation. The convention that took place the next month wasn't nearly as well-attended as it normally is--members in the armed forces were forced to withdraw, while many other members just didn't feel comfortable about traveling then. This resulted in a significant loss of registration fees. Even more significantly, the drops in the stock market have devalued NRPA's portfolio to a degree that we've had to use some of our operating funds to cover pensions and other expenses that are normally funded through investments.

Of course, the market downturn and sluggish economy have affected all enterprises, profit and nonprofit alike. But for-profit organizations are driven by one thing, and one thing only--profit. In contrast, nonprofit organizations like NRPA are motivated by a much broader slate of issues, all of which are important to our leadership and our membership. This makes our challenge much greater. In our enthusiastic efforts to address all those issues at once, we didn't adequately forecast how those efforts would affect our changing financial situation.

Fortunately, NRPA has enjoyed many years of staff and member leadership in the financial area, so we are well-equipped to meet these challenges. As I wrote in this space in the July 2002 issue, the mortgage on our beautiful national headquarters has been paid off. Our financial committee, headed by NRPA Treasurer Ron Lehman, is meeting once a month, working hard to improve our financial situation. The committee has created a plan to improve our major income areas, which include dues, conference registration fees, advertising and education. They are creating detailed budget forecasts, tracking what's coming in versus what was projected. Their efforts are already paying off. In addition, the NRPA leadership is taking a close, hard look at our budget, carefully prioritizing all our initiatives to ensure that our expenditures are in line with our revenues.

I'm delighted to report that, as I write, this month's National Congress & Exposition in Tampa, Fla., is shaping up to be a huge success in every way, including financially. At press time, we had signed up 435 fine exhibitors, bringing in more than $1.4, million. What's more, our show has proved so popular that it sold out in May, and we have a significant waiting list. Those on the waiting list have been invited to sponsor signs, purchase advertising in the program, pay a fee to distribute literature or otherwise sponsor the conference, thereby bringing in even more revenue. To take advantage of the great momentum we're building, we're already selling exhibition space for the 2003 Congress & Exposition.

NRPA staff report that the host professionals in Tampa are extremely enthusiastic about the conference, and that their enthusiasm is contagious! Registrations and housing are well ahead of where they were this time last year, showing that our membership is enthusiastic, too. It's easy to understand why--there will be more than 327 CEU accredited educational offerings, including one by a parks professional from Puerto Rico.

I want you to know that your NRPA is strong, stable and looking forward to an even brighter future!