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Presentation on theme: "STATE OF THE APPRAISAL INSTITUTE November 2010 1."— Presentation transcript:


2 FINANCIAL STATUS As of August 31,

3 Statement of Activities Comparison to Prior Year As of August 31, 2010 ($ in 000s) Favorable (Unfavorable) $% Total Revenue$ 12,568$ 11,564$1,0049% Total Expense 12,113 12, % Net Operating Surplus (Deficit) $ 445 $ (774)$1,229159% Non-Operating Expense - TAF 178 (178)(100%) Net Surplus (Deficit) $ 277 $ (774)$1, % 3

4 Statement of Activities Comparison to Budget As of August 31, 2010 ($ in 000s) Favorable (Unfavorable) ActualBudget$% Total Revenue$ 12,568$ 12,977$ (409)(3%) Total Expense 12,113 13, % Net Operating Surplus (Deficit) $ 445 $ (105)$ % Non-Operating Expense - TAF 178 (178)(100%) Net Surplus (Deficit) $ 277 $ (105)$ % 4

5 Total Membership* As of August 31, % Variance Renewals and New Members20,735 21,580 (4%) Budget 23,150 24,029 (4%) % of Budget 90% 90% *Includes only dues paying members. 5

6 New Members* As of August 31, Actual1,3782,343 Annual Budget3,0003,450 % of Budget 46% 68% *Includes only dues paying members. 6

7 Current Reserve Position As of August 31, 2010 Reserve Fund Balance$6,066,084 Number of Months 3.7 YTD Investments Earnings: $ 107,245 Rate of Return 1.9% 7

8 PERFORMANCE SHAPSHOT As of September 30,

9 Member Demographics –Median age is 51 –83% have at least a 4-year college degree –18% are female –7% are ethnic minorities –60% are commercial property oriented and 40% are residential property oriented –44% have been members for 20+ years –36% make more than $100k per year 9

10 AI Image/Reputation –Members and nonmembers have positive image of Appraisal Institute –Members and nonmembers agree that AI plays a leading role in charting a positive course, direction for profession –Appraisal Institute: best known for quality education programs (especially classroom) 10

11 New Designated Members Trend Line 11

12 New Members Trend Line 12

13 2010 Goals 25,750 total members 3,750 new members 280 new designations conferred –140 MAI and 140 SRA 45,400 students enrolled 1,350 educational programs delivered 14,000 publications sold 13

14 2010 Recruitment & Designations Results As of Sept. 30, 2010 –24,016 members total –1,557 new members (52% of 2010 goal) * –1,208 new Associate members –191 new Trainees –158 new Affiliate members –123 new MAI and 96 new SRA designated members in 2010 (78% of the 2010 target) * The 2010 recruitment goal is 3,750 for marketing budget purposes and 3,000 for dues revenue forecasting purposes. Proportion calculated on the revenue target. 14


16 Government Relations Federal Successes –Dodd-Frank Act: biggest reform in two decades –Defeated proposed increase of SBA appraisal threshold State Successes –Helped enact 20 AMC registration bills –Defeated BPO expansion bill (Miss.) –Developed model bill to retain licensing fees with state appraisal boards (2011 goal) 16

17 Government Relations Recent Official Letters –Federal Reserve Supporting recognition of VA Fee Schedule Customary and reasonable fees And appraisal independence –Securities and Exchange Commission Supporting Asset Backed Securities proposed rule Recognizes MAI Certified appraisals 17

18 Government Relations Recent Congressional Testimony –Before House Financial Services subcommittee –Commercial real estate market conditions –In Chicago 18

19 Other Items of Note –Washington Appraisal Summit –CFA Institute Global Investment Performance Standards –FASB Fair Value and Lease Accounting Standards Government Relations 19

20 What to watch for … Dodd-Frank implementation IRS penalties BPO legislation in the states Chapters in mandatory states: must be active and on high alert Government Relations 20

21 Resources –Dodd-Frank FAQs –Official Comment letters –Webinars on Dodd-Frank and other hot topics 21

22 Contacts –Bill Garber , –Scott DiBiasio , –Brian Rodgers , 22


24 Online Revenue Sharing Continued source for enhanced chapter revenue in 2011: $15 per student/chapter if the chapter fulfills the minimum criteria for promoting online education. 24

25 Professional Practice Center 25

26 2010 Publications Visual Valuation: Implementing Valuation Modeling and Geographic Information Solutions (Aug.) An Insiders Guide to Home Buying (Sept.) Real Estate Valuation in Global Markets, second edition (Dec.) 26

27 2011 Publications Appraising Land Conservation Easements (Jan.) Quality Control in Appraising (March) Self-Storage Economics (April) Cost Approach to Value (June) Hotels & Motels, International Edition (Aug.) Business Enterprise Value Anthology, second edition (Oct.) 27


29 AI Communications Media relations –Messages, interviews, bylined articles Speaking opportunities –Seminars, workshops, conferences Publications –Valuation, ANO, Residential Update, Journal Member communications –Member recognition program 29

30 AI Media Coverage Third Quarter 2010 –Total AI stories:382 –Total AI media outlets:289 –Total AI publicity value:$235,797 –Total AI impressions:401,654,937 Publicity value = vendors proprietary formula, weighing factors such as equivalent advertising value, placement, audience size, etc. Impressions = number of times a story may have been read, seen or heard 30

31 National Speaking Opportunities Members have represented AI so far in 2010 by speaking on key topics at: –AARO Spring Conference –Environmental Bankers Association member meeting –National Settlement Services & Compliance Summits –Pan Pacific Conference 31

32 National Speaking Opportunities Members will represent AI later in 2010 by speaking on key topics at: – NCRIEF Annual Conference –California Assessors Association statewide conference –GreenBuild 2010 Residential Summit –United Nations Economic Commission for Europe green valuation forum 32

33 Volunteer of Distinction AIs member recognition program 1 member per region honored each month –Service to AI, profession, community So far: 29 members from 9 regions cited 33


35 Aug Meeting Voted to appeal Foundations suspension of AI (later voted to withdraw as sponsor) Funded Chapters for 2011 Set 2011 AI meeting dates, sites Approved project team re: Candidate member program OKd 45-Day Notice item re: Reg. No. 1 35

36 Aug Meeting Elected Rick Borges as 2011 vice president Elected 3 members to Audit Committee Sent 2 items to 45-Day Notice: –Core Competency Framework –International members 36

37 Sept. 17 Meeting Announced AIs new strategic vision First new business model since 1991 Goals –Higher levels of excellence, competency –Increased value of membership –Awareness of AI designations –Increased demand for AI designations 37

38 Sept. 17 meeting Discontinued free USPAP on Jan. 1 Placed Associate members on 5-year cycle Transition AI Forum to AI Communities of Practice Changed procedures at BOD meetings Sent to 45-Day Notice: Guide Note 10 38

39 Nov. 3, 5 Meeting Passed motions: –2011 budget: no dues increase in U.S. –Created external relations project team –Added to board/officer conflict of interest procedure –Changed certificate programs to professional development programs –Only Designated members names on professional development program registries 39

40 Nov. 3, 5 Meeting Other motions passed: –Amended Regulation regarding chapter government relations committees, panel –Funded research, project manager related to new business model –Accepted IRWAs proposal enabling MAI, SRPA members to earn IRWA certification 40

41 Nov. 3, 5 Meeting Passed 45-Day Notice items: –International members –Guide Note: post-disaster valuation –Minor language revisions to mirror Illinois legislative language –Specific changes to Regulations No. 1 and 2 –Core competencies 41

42 Core Competencies Core competency approach will: –Position AI Designated members as premier source for real estate valuation –Attract individuals to Designated membership AI otherwise unable to attract –Recognize individuals with various advanced skill sets Complement, broaden shared expertise of AI 42

43 Core Competencies Core competencies also will: –Expand field of individuals who could work toward Designated membership status –Enhance reputation of Designated membership; add highly qualified members –Offer additional options to assess the strengths of AI Associate members –Provide temporary equivalent measure for appraisers who lack college degree 43

44 OTHER TOPICS November

45 2011 AI Meetings SPC: Jan. 31-Feb. 1, Chicago Board Meeting: Feb. 2-4, Chicago National Nominating Committee: May 3, San Juan, Puerto Rico Strategic Planning Committee: May 4, San Juan, Puerto Rico 2nd Quarter Board Meeting: May 5-6, San Juan, Puerto Rico 45

46 2011 AI Meetings Joint Regional Meeting: Aug. 14, Las Vegas AI Annual Meeting: Aug 15-17, Las Vegas 3Q Board Meeting: Aug , Las Vegas Committee Meetings: Sept , Chicago Chapter Leadership Program: Sept , Chicago Strategic Planning Committee: Chicago 4th Quarter Board Meeting: Chicago 46

47 2011 Annual Meeting First time since 2005 Aug Cosmopolitan hotel in Las Vegas –Networking (social receptions) –Education (AI and state credit) –Celebratory events (awards) –Exhibit hall –Off-site entertainment events 47

48 AIs Withdrawal from Foundation What is the financial impact on AI? What is the effect on USPAP courses? On other AI courses? Will AI members still get free USPAP? What about AIs designations? What happens to our reputation? Will AI ever return to the Foundation? 48

49 AIRF, AIET AI Relief Foundation –Created after Hurricane Katrina in 05 –Helps AI members, others in need – ault.aspx AI Education Trust –Formed 50+ years ago –Funds Lum Library, grants, scholarships – 49

50 Questions? 50

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