[DeTomaso] POCA

[Jeff Detrich]

I've gotten some feedback from members regarding the $100,000 cash balance
in the treasury and the issue about reducing the dues. I am taking a strong
stand on the issues because someone needs to let the Members know what is
going on. A lot takes place behind closed doors when we have Board
meetings. You should know and understand the issues.

Here's my reply to one of the member's question.

Jeff
6559



>
>     A local sports car club has way more money in their bank account than
>> POCA....
>>
>
> >>>So what? It all depends on the circumstances of that particular club
> and that doesn't mean that don't have too much money as well.
>
> The Board has legal responsibility to manage your money responsibly.
> Consider the purpose of a cash balance, particularly for a non-profit club.
> From a business prospective, there are three reasons you need a cash
> balance in excess of your monthly expense needs:
>
>     1. To cover a downturn in club membership dues renewal. We currently
> have yearly expenses of around $45,000, and this could be reduced $20,000
> to around $25,000 per year if they would deliver the Newsletter by email.
> Let's assume it's $45,000. We have enough free cash to run the club for a
> full 2 years even is everyone stopped paying dues - *everyone*. Does that
> sound reasonable? And if we reduce expenses by delivering the Newsletter
> electronically, it would be 4 years. Realistically, $20,000 would be more
> than adequate.
>
>     2. To cover any risks that the club may be exposed to. Thanks to Bob
> Reid, POCA has good insurance coverage. It even covers events held by the
> Chapters and includes Directors and Officers liability coverage.
> Furthermore, the club does no racing events and those would be covered by
> insurance if they did. Other clubs may or may not be so simple in their
> activities. The bottom line is that what risk we have is covered by our
> insurance. To be safe, let's say we keep an extra $10,000 for this.
>
>     3. To cover any needed capital outlays. The only capital outlay that
> the club needs is to develop a working and sustainable web-site. Probably
> about $10,000.
>
> So do we need $100,000? That's your money. The Board is the custodian of
> your money. Do want them to be spending $100,000 of your money? For what, I
> ask. It is just sitting there doing nothing. *My proposals to reduce dues
> by $15  and deliver the Newsletter by email would still provide a positive
> cash flow each year and it would do nothing to reduce the $100,000 balance,
> not counting the website redevelopment cost of $10,000. *
>
>
>
>
>
-------------- next part --------------
   I've gotten some feedback from members regarding the $100,000 cash
   balance in the treasury and the issue about reducing the dues.A I am
   taking a strong stand on the issues because someone needs to let the
   Members know what is going on.A A lot takes place behind closed doors
   when we have Board meetings. You should know and understand the issues.
   Here's my reply to one of the member's question.
   Jeff
   6559

   A A A  A local sports car club has way more money in their bank account
   than POCA....

   >>>So what? It all depends on the circumstances of that particular club
   and that doesn't mean that don't have too much money as well.
   The Board has legal responsibility to manage your money responsibly.A
   Consider the purpose of a cash balance, particularly for a non-profit
   club. From a business prospective, there are three reasons you need a
   cash balance in excess of your monthly expense needs:
   A  A  1. To cover a downturn in club membership dues renewal. We
   currently have yearly expenses of around $45,000, and this could be
   reduced $20,000 to around $25,000 per year if they would deliver the
   Newsletter by email. Let's assume it's $45,000. We have enough free
   cash to run the club for a full 2 years even is everyone stopped paying
   dues - everyone. Does that sound reasonable? And if we reduce expenses
   by delivering the Newsletter electronically, it would be 4 years.
   Realistically, $20,000 would be more than adequate.
   A  A  2. To cover any risks that the club may be exposed to. Thanks to
   Bob Reid, POCA has good insurance coverage. It even covers events held
   by the Chapters and includes Directors and Officers liability coverage.
   Furthermore, the club does no racing events and those would be covered
   by insurance if they did. Other clubs may or may not be so simple in
   their activities. The bottom line is that what risk we have is covered
   by our insurance. To be safe, let's say we keep an extra $10,000 for
   this.
   A  A  3. To cover any needed capital outlays. The only capital outlay
   that the club needs is to develop a working and sustainable web-site.
   Probably about $10,000.A
   So do we need $100,000? That's your money. The Board is the custodian
   of your money. Do want them to be spending $100,000 of your money? For
   what, I ask. It is just sitting there doing nothing. My proposals to
   reduce dues by $15 A and deliver the Newsletter by email would still
   provide a positive cash flow each year and it would do nothing to
   reduce the $100,000 balance, not counting the website redevelopment
   cost of $10,000.A