Transcript Chapter/Branch Task Force - American Society of Appraisers

American Society of Appraisers
The State of ASA…Where We
Are
Where We’re Going
James O. Brown, ASA
Governor –Region 5
May 14, 2009
Size and Demographics
Membership
3/31/09
ARM
BV
G&J
MTS
PP
RP
35
2,076
107
1,065
596
928
0.7%
43.2%
2.2%
22.2%
12.4%
19.3%
Total
4,807 100.0%
3/31/08
32
2,097
109
1,073
599
995
0.7%
43.6%
2.3%
22.3%
12.5%
20.7%
4,920 100.0%
3/31/07
30
2,077
117
1,056
608
1,067
0.6%
43.2%
2.4%
22.0%
12.6%
22.2%
4,956 100.0%
Membership
Associate
Candidate
AM
ASA
FASA
Applicant
929
820
221
2,701
54
184
18.9%
16.7%
4.5%
55.0%
1.1%
3.7%
Total
4,909
100.0%
As of 3/31/09
Financial Condition
FYE 6/30/08 by Discipline
Total
ARM
BV
Revenue:
Dues
Conf.
Discipline
Other
Tot. Rev.
2,580.1
251.6
2,837.6
331.3
6,000.7
15.6
0.0
0.7
2.1
18.4
1,098.0
43.8
1,910.3
139.3
3,221.5
Tot. Exp.
5,696.2
63.7
2,596.3
Net
304.5
(45.3)
GJ
PP
RP
60.3
552.6
20.3
87.2
10.3
500.7
7.0
74.8
97.7 1,215.3
314.0
63.1
231.0
36.4
644.5
539.6
37.1
154.6
71.7
803.0
221.6 1,132.2
821.0
861.4
625.2 (123.7)
MTS
83.2 (176.5) (58.4)
Balance Sheet
June 30, 2008
Total Assets
$3,408,823
Total Liabilities
$2,115,704
Net Assets
$1,293,119
Cash and Equivalents
$1,759,466
Governance
Governance
Notable decisions last 5-years
Reorganize along discipline lines
Alliance with AI and ASFMRA
Discipline-Centric
Board of Governors:
2 From each discipline = 10
5 Region
Pres, SVP, Sec/Treas./Past Pres. = 4
Total = 19
Parliamentarian
Legal counsel
Governance
Recent transfer of advancement process
to ASA HQ
California Coalition of
Appraisers
Don Risner – Lobbyist
By law, he cannot represent a group
with less than 10 members
Combined lobbying opinion of ASA,
ASFMRA and maybe, NAIFA
California Coalition of
Appraisers
Don Risner – Lobbyist
Need to establish a “committee” to
provide a common opinion to Don
Don must contract separately with
each organization
Status of Chapters
American Society of Appraisers
Chapter/Branch Task Force
Report to
Board of Governors
August 1, 2008
Members
Jim Brown, ASA -
Business Valuation, San Jose, CA
Hatsy Cutshall, CPA - ASA Chief Finance & Operations Officer, ASA, HQ
Bruce Kerr, ASA -
Machinery & Technical Specialties, Portland, OR
Edith Yeomans, ASA - Personal Property, Toronto, ON, Canada
Mark Penny, ASA Bonny Price -
Business Valuation, Haddonfield, NJ
ASA Director of Membership and Reaccreditation
Task Force Purpose

Study chapter/branch relationship

Analyze status of chapters


Clarify purpose and mission of
chapters and branches
Study chapter legal structure
Fundamental Questions
Purpose of ASA
What is the purpose of American
Society of Appraisers?
Purpose of ASA

Examination and accreditation

Valuation education

Valuation standards and standards of
ethical conduct
Purpose of ASA



Legislative communication/advocacy
Forum for inter-communication
between appraisers
Promotion/marketing of ASA and its
members
Fundamental Question
What is the purpose and mission
of chapters?
Fundamental Question
Is American Society of Appraisers
the sum of its chapters?
Fundamental Question
Does the success of ASA depend on the
success of its chapters?
Fundamental Question
Are chapters a distribution channel
through which ASA carries out its
mission and purpose?
Successful Organization
Requires
Clarity and commitment to mission
Observation
The mission of ASA chapters is neither clear
nor possessing strong commitment
Observation
ASA HQ assistance seems to be
activity oriented not content oriented
Observation
Current requirements make it difficult to
form chapters and attract chapter
officers.
ASA Membership
“All members of the Society must be
affiliated through a chapter.”
Bylaw VIII, Section I,D
Chapter Meetings
“The chapter governing body shall meet
in person or by teleconference in all
months in which the chapter does not
have a meeting.”
Administrative Rule IV, Section 13
Chapter Requirements
“A group of 25 or more members, 10 of
whom must be designated members,
may apply to the society for initiation
of a chapter.”
Bylaw IV, Section 1
Branch Requirements
“A branch must be geographically distant
from its chapter such that the branch
members have difficulty getting to
chapter meetings and/or participating
in the activities of the chapter.”
Administrative Rule IV, Section 17,A
Branch Requirements
(Continued)
“A branch must have at least five
members, with no fewer than two
designated as ASA or AM.”
Administrative Rule IV, Section 17,D
Chapter Legal Structure
Legal entity separate from ASA (the
Delaware corporation)
501(c)6 corporation
Unincorporated association
HQ - Chapter Relationship
ASA HQ has contract authority over a
chapter
ASA HQ authority is based on historical
protocol and voluntary cooperation
Survey Procedure
Contacted officers or members of 44
chapters (including 5 branches),
representing 62% of all 71 chapters
Interviewed by telephone to ask openended questions without introducing
our own opinion
Chapter Purpose & Mission
Survey Questions
Chapter Purpose & Mission
1. What is the purpose and mission of
ASA chapters?
2. What “yardstick” is used to measure
the effectiveness of carrying out their
mission?
3. What should be in the “play book”
for chapter officers to follow?
Chapter Purpose & Mission
4. If you started ASA today, what would
be the purpose and mission of
chapters?
5. Would you have chapters at all?
Chapter Purpose & Mission
Survey Results
Purpose & Mission
1. Education – In addition to POV
courses offered by ASA HQ
2. Mentoring – Assistance to candidates
going through the accreditation
process
Purpose & Mission
(Continued)
3. Testing – Local resources to proctor
exams
4. Recruitment – Introduce prospective
members to ASA
Purpose & Mission
(Continued)
5. Public Relations
6. Legislative Communication – Local or
state (province) issues not known to
or addressed by ASA HQ
Purpose & Mission
(Continued)
7. Networking – Appraiser to appraiser
8. Socializing – There seems to be a
need to belong to a special group
that is fulfilled by ASA
Purpose & Mission
(Continued)
9. Leadership Development – Chapters
are a venue from which potential
ASA leadership can make themselves
known
Current “Yardstick”
Number of meetings
Number of members
attending
Current “Yardstick”
Little is said about the
content of those meetings
New “Yardstick”
Numerical ranking based on frequency
of delivering services to members
Provides Services to
Members
5.
4.
3.
2.
1.
Regularly
Irregularly
Sometimes
Occasionally
None
Chapter Operating Status
Grade
5
4
3
2
1
Total
Count
2
8
12
5
17
44
Percent
5%
18%
27%
11%
39%
100%
50%
Chapter Operating Status



Member involvement at chapter events is
approximately 15% to 20%. A small number
may be higher.
Many chapters have difficulty identifying
officers willing to serve.
Discipline committees are not using chapters
as a distribution channel through which
services may be provided.
Chapter Operating Status



Few educational subjects cross
discipline lines.
Chapter function attendees seem to
be generally the same group over and
over.
The 80% to 85% not attending
chapter activities continue to renew
their membership.
2003 Allegiance Survey
Conducted by Strategic Planning Task
Force
60% of membership responded
2003 Allegiance Survey
Why do you belong to the American
Society of Appraisers?
Allegiance Survey
Responses
34% - Professional Accreditation
22% - Continuing Education
11% - Legislative advocacy, professional
standards, code of ethics
9% - Only interaction is by mail, fax or email
10% - If information is relevant or wants to
network, often attend ASA meetings
Chapter Cash Balances
June 30, 2008 & 2007
6/30/08
6/30/07
$806,910.11
$769,964.71
* 80 Chapters/Branches, including Hong Kong, Mexico ,Argentina and Australia
Chapter Cash Balances
June 30, 2008

16
$10,000 - $19,999

4
$20,000 - $29,999

2
> $30,000
Chapter Cash Balances
June 30, 2008
Does this mean members’ funds are not
being utilized for member benefit and
are sitting idle?
Chapter/Branch Task Force
RECOMMENDATIONS
Chapter Mission
Develop specific, action-oriented
mission, consistent with the mission
of ASA, that is common to all
chapters
(1) Voluntary chapter
membership
Make chapter membership
voluntary instead of
required. Only chapter
members would pay the $25
annual chapter dues
(1) Voluntary chapter
membership
Advantages:
Fairness – Only those interested in chapter
activities will pay for them
Subsidy – Those not interested no longer
subsidize the rest
Idle funds – May be depleted and put to positive
use to finance operations
Relevance – Would require chapter activities to be
relevant to members to generate interest. Poor
activities will lack both subsidy and cash balance
making poor activities less likely
(1) Voluntary chapter
membership
Disadvantages (cont.):
Subsidy – No longer available to finance
chapter activities
Idle funds – Likely to be spent down and no
longer available to support good programs.
Higher program cost per member
Relevance – Chapter officers who enjoy
“running something” regardless of
effectiveness will be disappointed and will be
less likely to volunteer
(1) Voluntary chapter
membership
Disadvantages (cont.):
Failed chapters – May increase number of
failed chapters if poor programs don’t attract
needed members and funding
Jim Brown’s Observation – I submit that
many more chapters have already failed. We
just have not admitted it.
(2) Reduce minimum
members to four
Advantages:
Encourage formation and continuation –
Easier to form and continue
Disadvantages:
Small group – May lack credibility with public
(3) Eliminate concept of
branch
Advantages:
Improved relevance – Branches tend to result
from poorly performing chapters which have
been “downgraded” but continue poor
performance
Disadvantages:
None
(4) Eliminate processing of
advancement/reinstatement
Ask local senior appraisers to
perform this function much like
proctoring an exam
(4) Eliminate processing of
advancement/reinstatement
Advantages:
Faster processing – Would identify volunteer
senior appraiser ready to act on it
immediately
No officers – When chapter has no elected
officers, Regional Governor substitutes and
may prolong process
Disadvantages:
None
(5) Eliminate requirement for
monthly board meetings
Leave frequency to discretion of
chapter board or legal
minimums
(5) Eliminate requirement for
monthly board meetings
Advantages:
Easier – Lower minimum requirement may
increase population of members willing to
volunteer
Disadvantages:
Less frequent communication among board
members
(6) Discipline-committeeprepared modular courses
Ask each discipline committee
to develop two modular courses
on current topics that can be
taught by a senior appraiser at
a “local” level
(6) Discipline-committeeprepared modular courses
Advantages:
Greater attendance – Avoids need for distant
travel
Relevant – Better programs enhance stature
of chapter and ASA at local level
Disadvantages:
Quality of instruction – Difficult to control
instruction quality
Online courses – May compete with online
courses using “distance learning” methods
(7) Practice management
modular courses
Ask ASA HQ to prepare modular
courses that can be taught by a
senior appraiser at a local level
on professional liability insurance,
accounting/bookkeeping,
engagement letters, marketing.
(7) Practice management
modular courses
Advantages:
Greater attendance – Avoids need for distant
travel
Relevant – Better programs enhance stature
of chapter and ASA at local level
Disadvantages:
Quality of instruction – Difficult to control
instruction quality
Online courses – May compete with online
courses using “distance learning” methods
Alliances/Merger
NAIFA
RICS
CFA
CICBV
American Society of Appraisers
The State of ASA…Where We
Are
Where We’re Going
James O. Brown, ASA
Governor –Region 5
May 14, 2009