In last month's column, I focused on the rationale and process utilized in developing and implementing SLA's long-range financial plan. For this month's column, I will outline the actual financial plan and its specific goals and objectives. The most important of which is the association's ability to fulfill its strategic objectives and to provide cutting-edge programs and services to its members at affordable rates, while maintaining a sound fiscal position.

A recap of last month's column: Over the past three years, the Finance Committee has been working on a long-range financial plan to ensure the long-term financial stability of the association. As shown in the association's five-year financial forecasts: Without an influx of additional net income, the association would run in a deficit position by as early as 1998, with an estimated deficit of more than one-quarter million dollars by the year 2001. Over the past few years, the association has made significant gains in the following areas: promoting the value of the profession; providing significant distance learning opportunities; providing access to many leading speakers, authors, and instructors; developing the virtual association and electronic commerce; and positioning the association as the leader in global information policy.

Each year it becomes more and more costly to operate the association in the capacity to which we have become accustomed. Furthermore, SLA's financial base is jeopardized by increasing activity within the not-for-profit regulatory environment. It is, therefore, becoming more and more critical that SLA maintain a strong membership dues base. This is the most stable form of income an association can develop and maintain (according to the American Society of Association Executives 1997 Operating Ratios Report). The association's current dues income as a percentage of total income is 25 percent, much less than the 40 percent industry standard.

The plan: The long-range financial plan includes both cost reductions and increased income as a means to balancing the priorities of the association. The Finance Committee reviewed an exhaustive set of financial options and scenarios. The committee spent considerable time balancing the various options in relation to SLA's dues versus non-dues income ratio with findings from membership surveys and the IRS examination. The committee has reduced expenditures where strategic priorities were not jeopardized as a routine function of the program planning and budgeting processes. The costs reductions have primarily been aimed at the association headquarters on an administrative level (doing more with less) and will continue as such where prudent.

The Finance Committee, in examining all income options, sought to narrow the gap in the dues/non-dues ratio. After extensive analysis, the committee developed the specific recommendations of its long-term financial plan. The items which have been selected by the Finance Committee as viable options for long-term income growth and stability are expected to yield an overall additional income for each of the next five years. For simplicity, the committee did not specifically focus beyond the five-year period, although the options presented are expected to positively impact years beyond 2001.

The increased income will be derived from nine functional activities which are both dues and non-dues related: (1) An increase in the shipping and handling costs for nonserial publications to cover the actual costs to process and deliver orders (already in place). (2) An increase in the membership dues and fees for the first time since 1995. The allotments paid to the units will also increase, so the full income potential is decreased by such (slated for 1998). (3) An increase in the Information Outlook non-member subscription (in place for 1998). (4) An increase in vendor advertising rates. (5) An increase in the registration fees for the annual conference(slated for 2000). (6) An increase in the conference exhibit fees (in place for 1998). (7) An increase in the Professional Development fees for selected events and for the self-study courses, especially for the non-member price differential (in place for 1998). (8) An increase in the fees charged for listing jobs by 10 percent, and an increase the non-member price differential for participating in the Employment Clearinghouse (in place for 1998). (9) The generation of income in the Research program (slated for 1999).

The long-range financial plan allows for increased funding in the areas which you, the members, have deemed important to your professional interests and growth:

• Competency: Ensuring that SLA members have opportunities to develop their professional competencies and skills through dynamic, continuous learning, experience, and knowledge opportunities.
• Value of the Profession: Narrowing the gap between the value of the information professional and the perceived value of information professionals among decision-makers through the active promotion of and access to the profession.
• Virtual Association: Utilizing technology whereby all members have access to the association's products and services globally, equitably, and continuously.
• Member Benefits: Providing cutting-edge products and services to SLA's members.
• Annual Conference and Exhibit Hall
• Information Outlook
• Who's Who Membership Directory
• Educational Courses and Distance Learning
• Career and Employment Services
• Chapter and Division Networking
• SLA Homepage and Listservs
• Book Publishing
• Public Relations and Government Relations
• Research and Information Resource Center
• Leadership Development and Training
• Grants and Scholarships
• Awards and Honors
• Professional Policy and Standards
• Fax-on-Demand
• International Activities
• Voice on Association Matters

The Finance Committee and the Board of Directors have worked diligently and respectfully in developing the long-range financial plan. As a result, our future as an association and a profession is bright with promise. The plan will afford the association the opportunity to continue offering its many cutting-edge products and services and to advance the association's leadership role in our global information and knowledge-based society.

by Richard Wallace, SLA Treasurer. Wallace is manager, Technical Information Center, A.E. Staley Manufacturing Company, Decatur, IL. For more information on "Money Matters" or to contribute to the column, please contact Wallace at: 1-217-421-3283; fax: 1-217-421-2419; e-mail: rewallace@aestaley.com.