1. C.A.R. 2013-2015 Strategic Planning Presented by Joel Singer September 2012

2. CAR’s Strategic Planning Approach Zero-based Objective-Focused Actual Resource Allocation

3. CALMLS RERS 100% REBT, Inc. 100% CREIEC REBS C.A.R. CREPACIMPAC CREPAC Federal Scholarship Foundation Housing Affordability Fund Education Foundation zipLogix 64.4% REBOS 50% NHD X X REBT, LLCSAREC X X REMT 100% X X Organizational Chart X

4. CREIEC REBS C.A.R. CREPACIMPAC CREPAC Federal Scholarship Foundation Housing Affordability Fund Education Foundation REBT, Inc 100% zipLogix, LLC 64.4% California Holding Co. Inc Current Organizational Chart

5. 2012 Projections and Long- Range History

6. Membership 158,000 Dues Revenue$ 17.5 million Non Dues Revenue*$ 8.4 million Net Deficit$ (1.6) million 2012 Revised Projection * Investment income included. * No REBS transfer

7. $ Millions 14 49 41 36 C.A.R. & Subsidiaries Combined Revenue 36

8. REBS. Revenue $3.8million Net Surplus $243,700 REBT, Inc. Revenue $354,200 Net Surplus $307,200 Before Transfer zipLogix (64.4%) Revenue $6.3 million Net Surplus $1.5 million 2012 Projection for Profit Entities

9. Combined Revenue REBS & Subsidiaries $ Millions 5.5 10.9 11.1 10.5 10.1

10. REBS & Subsidiaries Combined Net Income 2000 1996 $ Thousands 2010 2012 P2011 1,523 1,541 (351) 1,587 489 1,045 (1,081) 360 (177) 244 54

11. .7 1.0 1.1 1.5 1.7 1.9 2.0 1.4 2.0 1.0 1.8 1.5 3.5 REBS Transfer to C.A.R. ($ Million) 2.0 0.0 3.5 1.5 Total Dividend Transfer to CAR 1996 to 2011- $27.6 Million. No REBS transfer in 2012

12. Million REBS Inc. and Subsidiaries Projected Cash Balance – December 31, 2012

13. Initial investment $398,000 Total dividend $ 8.5 million excluding tax distribution since inception Total dividend and tax distributed to REBS $14.6 million since inception Current equity 10 million (C.A.R. Portion $6.5 million) zipLogix

14. 2013 Budget Analysis Revenue Expenditures Membership

15. 2013 Budget vs. 2012 Projection * Note: 2012 projection includes the proposed augmentations and no REBS transfer

16. 2013 Core Program Budget Expenditures vs. 2012 Projected Expenditures by percentage 2012 Projected Expenditures 2013 Core Program Budget Expenditures

17. 10 Largest Core Program Expenditures in 2013 & 2012

18. Number of Budgeted Staff Positions Number of Staff In 2012 added four Field Representatives, one Membership and one Sales Rep. In 2013 eliminated one Field Representative, one Political Analyst and one Contact Center; two new staff added for new programs

19. Member-to-Staff Ratio

20. Dues Per Member & Total Dues Collected California Association of REALTORS ® 115 90 115 $ Millions 115

21. Dues Per Member (Current Dollars vs. Inflation-Adjusted Dollars) (Base Year = 1990) 1995 IAF + $10 2000 PAF + $10 2011 RAA + $49 In 2013 the member benefit provided per member is $187 vs $115 actual dues

22. Membership Dues Reduction in 1995 The Membership Dues was reduced in 1995 from $77 to $64 Same year the Issue Action Fund (IAF) $10 was implemented

23. Political Assessment included in Membership Dues In 1995 Issues Action Fund (IAF) $10 In 2000 Political Action Fund ( PAF) $10 In 2011 Realtor Action Assessment (RAA) $49

24. RevenuePercentage Dues Revenue as Share of C.A.R. & Subsidiaries Total Revenue

25. Member Benefit Dollars Provided In 2013 the member benefit provided per member is $187 vs. $115 actual membership dues

26. New Member Services Added Last 10 years Forms Advisor/Tutor ZipForms ® Digital Ink ZipVault ePUBS C.A.R. Online Redesign Consumer Advertising Campaign Customer Contact Center Field Program Housing Affordability Legal Hotline Expansion Strategic Defense Communication Video Content Statewide Ombudsman Young Professionals Network Local Candidate and Campaign Field C.A.R. Electoral Services

27. REALTOR® Advertising Media: Radio Television Online Video Social Media Core Program Cost$2,007,500

28. Cycle 1: 1980 148,346 (peak) to 1983 102,655 (trough). -30.8% Cycle 2: 1990 146,025 (peak) to 1997 90,500 (trough). -38.0% Cycle 3: 2006 211,254 (peak) to 9 Years 3 years 7 years 9 years 6 years Membership Comparison

29. Liquid Reserves

30. 2013 Proposed Core Budget Summary

31. 2013 New Programs Summary Approved by SPF Committee

32. 2013 New Programs Summary Not Approved by SPF Committee

33. 2013 New Programs (One-time Impact) Homeownership Matters/IDA Program Real Estate Research Symposium Trends Database Upgrade REALTOR® S.W.A.T. Market Opportunity Conferences Strategies for Thought Leadership Conference Enhanced Local Association Services

34. 2013 New Programs (Ongoing Impact) MLS-Connect CE Credit Thought Leadership Initiative Enhanced Survey Research Initiative Lender Ombudsman Financing Resource for REALTORS® Industry & Broker Relations Program Property Management & Investment Section Statewide Ombudsman Program Local Association Mobile App Champion of Home Heroes REALTOR® Rating 360 (Peer-to-Peer) Pilot Program Microtargeting Strategies Local AOR Incentive Program

35. REALTOR® Action Fund: Fundraising Program $524,500 CREPAC Local Candidate Field Program $375,300 REALTOR ® Receptions $197,100 C.A.R. Electoral Services $39,500 Federal Governmental Relations $25,100 for Officers travel to lobbying trip Communications $20,000 for design of membership value campaign materials Total Funded by RAA - $1,181,500 Programs Funded by REALTOR® Action Assessment (RAA)

36. Worst Case Dues Adequacy Scenario $ (Thousand)

37. Worst-Case Scenario Reserves

38. CREPAC IMPACCREIEC CREPAC Federal Political Action Committees

39. Membership Dues $184 $115 (62.5%) Support Programs $69 (37.5%) Support Political Activities Membership Dues and Assessments

40. Percentage of Members Making RAF Contributions

41. C.A.R. Membership Dues Housing Affordability Fund (HAF) $10 and up Voluntary Contribution Voluntary Contribution Membership Dues Assessments & Voluntary Contributions REALTOR® Action Fund (RAF) $1 to $5,000 C.A.R. Member Dues $184 IAF $10 RAA $49 C.A.R. Dues $115 PAF $10

42. Political Activities Fund Political Activities Fund (PAF) $10 IMPAC-Local Matching 10% of RAF IMPAC- State Matching 5% of RAF Remaining Balance Political Activities Fund support

43. Issues Action Fund (IAF) $10 Issues Action Fund IMPAC/CREPAC/LCRC Program Cost Remaining Balance Allocate 30% to Local IMPAC Allocate 70% to State IMPAC

44. REALTOR® Action Assessment REALTOR® Action Assessment (RAA) $49 Program funded by RAA CREPAC 45% LCRC 30% CREIEC 25%

45. REALTOR® Action Fund (RAF) $1 to $5,000 Personal Contribution REALTOR® Action Fund LCRC 30% $1 to $200 Personal CREPAC Federal 70% $1 to $200 RAF $1 to $200 RAF Personal $201 to $5,000 to CREPAC/FED

46. REALTOR® Action Fund (RAF) $1 to $5,000 Corporate Contribution REALTOR® Action Fund LCRC 30% $1 to $200 Corporate CREIEC 70% $1 to $200 RAF $1 to $200 RAF Corporate $201 to $5,000 to CREIEC

47. CREPAC State $2,687,979 CREPAC State $2,687,979 CREIEC $1,493,322 CREIEC $1,493,322 RAF Receptions $175,000 Fed Gov’t Relations (Officer’s Lobbying Trip) $25,100 Fed Gov’t Relations (Officer’s Lobbying Trip) $25,100 Campaign School $50,000 Campaign School $50,000 RAF Fundraising/RPC $663,500 RAF Fundraising/RPC $663,500 Program Costs $1,384,713 Program Costs $1,384,713 2012 REALTOR® ACTION Assessment Allocation LCRC $985,592 LCRC $985,592 IMPAC Local $806,394 IMPAC Local $806,394 PAF Field Program $4,313 PAF Field Program $4,313 47 70% of RAA after program costs 30% of RAA after program costs C.A.R. Electoral Services $39,700 C.A.R. Electoral Services $39,700 Member Mob Phone App $35,000 Communications Membership Value Campaign materials $20,000 Communications Membership Value Campaign materials $20,000 CREPAC Local Candidate Field Program $372,100 CREPAC Local Candidate Field Program $372,100 Based on 2012 Budget

48. CREPAC State $2,709,405 CREPAC State $2,709,405 CREIEC $1,505,225 CREIEC $1,505,225 Fed Gov’t Relations (Officer’s Lobbying Trip) $25,100 Fed Gov’t Relations (Officer’s Lobbying Trip) $25,100 Program Costs $1,181,500 Program Costs $1,181,500 2013 REALTOR® ACTION Assessment Allocation LCRC $812,822 LCRC $812,822 IMPAC Local $993,449 IMPAC Local $993,449 48 *70% of RAA after program costs *30% of RAA after program costs Based on 2013 Proposed Budget CREPAC Local Candidate Field Program $375,300 CREPAC Local Candidate Field Program $375,300 C.A.R. Electoral Services $39,500 C.A.R. Electoral Services $39,500 Communications Membership Value Campaign materials $20,000 Communications Membership Value Campaign materials $20,000 RAF Receptions $197,100 RAF Fundraising/RPC $524,500 RAF Fundraising/RPC $524,500

49. Political Fundraising 3.8 4.6 5.8 $ Millions 6.6 California Association of REALTORS ® 7.4 5.8 5.1 5.0 11.8 12.2

50. Political Contribution Revenues

51. Political Action Committee- Fund Balance As of August 31, 2012 California Association of REALTORS ® Million

52. FOUNDATIONS Scholarship Endowment $1.2 million Education Endowment $96,929 Housing Affordability Funds Funds Available $2.9 million Foundations As of July 31, 2012 $4.2 million

53. $ Millions Housing Affordability Fund Since Inception, as of July 31, 2012

54. $ Millions 158 500 420 240 208 317 286 300 415 189 209 265 305 280 216 178 Housing Affordability Fund 162 194 116 155

55. Questions?