1. Worcester Chapter Presentation
2017 Goals
AMC Economics
AMC “Reserves”
Chapter Financial Observations
Considerations
Worcester Chapter Economics
Worcester Chapter Financial History

2. NOTE: We’re going through the same process with the VCCs!
2017 Goals
Hold Treasurer webinar covering the Finance & Administration Manual
Fixed Asset & Capital Planning
Meeting with each chapter’s leadership to help answer chapters’ finance-related questions
NOTE: We’re going through the same process with the VCCs!

3. AMC Economics – AMC’s Funding Sources
$13.4M – Philanthropy
$2.5M – Program Fees,
Contracts & Other Revenue
$10.9M – Lodging Revenue
$2.0M – Merchandise & Publications
Annual Fund – $3.4M
Membership – $3.1M
Endowment – $2.5M
Grants – $1.9M
Capital Campaign (LGI) – $1.9M
Support Funds – $0.5M
NH/NJ/NY Facilities – $4.4M
Huts – $4.1M
Maine Facilities – $0.8M
Volunteer Led Camps & Cabins – $1.7M

4. AMC “Reserves” Rationale for AMC “Reserves”
For “risks” within rigorous budget discipline
To protect against the variability and unpredictability in revenue and expenses
Where is the budget “variability”?
Outdoor Program Centers
Weather, economy, consumer trends
Philanthropy
Year-end donations, grant success, competition, government funding, investment returns
Operating Surplus Fund (OSF)
Composed of annual surplus and bequests
Board determined $1.5m (approx. 5% of revenues)
“Strategically” spend excess (V2010, V2020)
$2m spent

5. Chapter Financial Observations
Significantly improved financial conditions
Buildup of “Cash & Reserves”
Operations are generating surpluses
Conservative spending? Fewer newsletters? Other?
Investment returns on endowment and invested reserves
Total Chapter Cash & Reserves = $1.85m
OSF = $2.3 current ($1.5m floor)
What is the appropriate level for chapter contingency funds given…
Reserves at the AMC level
Mission needs
Fiduciary responsibility
We are engaged in a process to determine the appropriate level of “Reserves”

6. Considerations Stewardship Appropriate Spending Contingency
Long-term sustainability
Fiduciary responsibility
Appropriate Spending
Publicly Charitable
Mission-oriented
Contingency
Covering net fixed costs (vs. variable costs)
Protecting against unexpectedly lower revenue and expenses
Existing AMC reserves
AMC Operating Surplus Fund, as an example

7. Worcester Chapter Finances
FUNDING SOURCES
“Stable & Recurring” Revenues
Endowment Allocation
Membership Allocation
“Variable & Recurring” Revenues
Program Income
Other Income
Other Funds
Excess Cash
Invested Reserves
FUND DEPLOYMENT
“Stable & Recurring” Costs
Publishing & Promotion
“Variable & Recurring” Costs
Program Costs
Other Costs
Strategic Projects

8. Worcester Chapter Financial History

9. Worcester Chapter Financial History
Note: The decline in cash assets in 2012 is due to a $23k capital purchase