1. 2005-2006 Funding Proposal Carolinas District Kiwanis International Bev Martin, Governor May 18, 2005

2. Where do we get our money? The Process: Kiwanis Int’l bills clubs Clubs remit dues to KI KI transfers dues to District

3. Dues Collection for 2005-2006 Change in Collection Procedure Affects District Cash Flow

4. Comparison of Years 2004-2005 $10 per member collected twice a year October 1 April 1 2005-2006 $20 per member collected annually on either December 31, 2005 March 31, 2006 May 31, 2006

5. Impact of Annual Dues on the Carolinas District Affects cash flow We will have a “gap” from which we cannot recover. (No income every year from October – February.)

6. Transfer Experience 2004-20052005-2006 Payable Oct.1Payable Dec. 31 10 th Nov: $10,921 (11%*)10 th Nov: 0 10 th Dec: $35,239 (35%)10 th Dec: 0 10 th Jan: $23,550 (23.5%)10 th Jan: 0 10 th Feb:$18,320 (18%)10 th Feb: $7541.60** Totals:$88,030 $7,541.60 * % of total anticipated revenue ** 11% of $68,560 expected receipts for clubs billed December 31.

7. Transfer Experience Actual Cash Flow 2004-05Projected Cash Flow 2005-06

8. IMPACT February 10, 2005February 10, 2006 $88,030$7,542 $80,489 possible shortfall

9. CASH FLOW GAP SINCE WE WILL REMAIN WITH ANNUAL DUES BILLING, THIS GAP WILL NEVER BE ABLE TO BE REIMBURSED. WE WILL NEED TO USE MONEY RECEIVED IN JULY – SEPTEMBER TO COVER OCTOBER –FEBRUARY OF THE NEXT YEAR.

10. How Do We Cover the Gap in Cash Flow? Three Board proposals One of which needs House of Delegates approval

11. Proposal 1 One-time adjustment $7.00 per member Based on April 2005 membership Due and payable to District by October 1, 2005

12. Proposal 2 Withdraw needed funds (Up to $70,000 from reserve fund) One-half of reserve fund ($142,000)

13. Proposal 3 Withdraw up to $70,000 from reserve fund AND Permanently increase dues $2.00 per member effective October 1, 2005 to always go to the reserve fund

14. Impact on a 30 Member Club: –$210 on Oct 1 to District Office ($7 Adjustment) AND –$2,457 by December 31 to KI $20 District Dues $61.90 KI Dues Proposal 1: $7 Adjustment paid to District

15. Proposal 2: ($70,000 from Reserve Fund) Impact on a 30 member club: $2,457 by December 31 to KI ($600 of that amount transferred from KI to District)

16. Proposal 3 $2 Club Dues Increase AND a $70,000 withdrawal from the Reserve Fund How it affects the reserve fund: The District is predicting that reducing the reserve fund by $70,000 could result in a loss of approximately $35,000 at the 6% current return over the course of 7 years (time estimated to regain the $70,000 with $2 per member being returned to the fund each year). Factors affecting this prediction include District Membership Numbers as well as clubs timely payment of dues. Impact on a 30 member Club @$22 for District and $61.90 for KI $2,517 by December 31 to KI $660 transferred from KI to District $600 to operating budget $60 to reserve fund ($2 dues increase)