1. RLC Brief Sandra Magnus The American Institute of Aeronautics and Astronautics 15 August 2013

2. We live in challenging times….. Current economic environment is impacting everyone:  Budget cuts resulted in direction from most government agencies reducing participation in all conferences and discretionary travel. This affects us across the board – exhibits, sponsored events, speakers, and general attendance.  This will probably continue into next fiscal year and beyond  AIAA in collaboration with other associations (including non-engineering) has ongoing multiple actions in response, with some impact already evident –Working with OMB to level the playing field and soften the travel restrictions –Working with Congress to influence legislation (eliminated Coburn Senate Budget Amendment restricting agency participation to 25 attendees / conference) –Working with agencies to get waivers –Working with media to promote awareness 2

3. Impacts to AIAA Ended 2012 with a negative operating balance (471K) Budgeted 2013 anticipating negative operating balance (500K) Unexpected last minute cancellation of Missile Defense Agency conference (due to sequestration) means unbudgeted loss of ( 1.040M ) for 2013 Seeing an overall 15-20% decrease in conference attendance Some exhibits for JPC 2013 and SPACE 2013 have been cancelled 3

4. On the positive side…. NASA supports AIAA events for waiver approval for travel Support from government technical and management staff for our events is strong Exhibitors who are cancelling are willing to use funds for sponsorships or roll funds forward to next year. Staff expenses are under budget (active management by staff) New Event Model conferences have growth potential AIAA’s input is being actively sought on the policy front 4

5. AIAA Impacts: Revenue Trend 5 Revenue can no longer cover business expenses.

6. Financial Breakout 6 Financials grouped by Business Function Each area includes revenue, direct expenses, labor, and fringe Allocations renamed to Overhead and are separate

7. Things in work (or coming down the pipeline) New Messaging  Purpose: To ignite and celebrate aerospace ingenuity and collaboration and its importance to our way of life.  Promise: To be your vital lifelong link to and champion for the collective creativity, brainpower, and achievements of the aerospace profession. Enhanced on-line engagement capabilities Growth into new technical areas Engagement of sections/YPs/Students More engagement with policy issues Collaborations with other organizations 7

8. In Summary….. AIAA is a great organization! There is a lot going on! There are a lot of opportunities! We are going to come out of this stronger, more responsive and flexible to our environment! Hope you stay engaged! 8