Hossfly
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Joined: 12/3/2001
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From: New Caney,
TX, USA
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quote:
ORIGINAL: Top_Gunn
If I understand the OP, which isn't easy, he's suggesting that Model Aviation has been losing money. But, if you look at ''Note A'' to the financial statements, you will see that the AMA reported a profit in both 2009 and 2010 from its unrelated business activities, the largest of which seems to be Model Aviation. (These profits were not taxed because there was a loss carryover from earlier years.) So it looks to me as if the AMA was making money on MA in 2009 and 2010. To be sure, the calculation of the ''profit'' on just some of an organization's activities is somewhat arbitrary, as it depends upon allocations the accountants make of various expenses like overhead, so it takes a lot more than the ability to ''read a very basic Financial Audit Report'' to be confident of that conclusion.
But, as I said earlier, I can't really tell what the point of the original post was supposed to be. Some of the posts in this thread, however, seem to assume that Model Aviation is a revenue loser, which it isn't, at least for these two years. Whether it would make or lose money by itself, if it weren't something AMA members have to pay for with part of their dues, is a question no one can answer; certainly not from these financial statements.
Al, you must be from the "New Math" that rose up some years ago.  Model Aviation does not make a profit and loss carryovers are common in business as well as Long Term Capital Gains & Losses for anyone that have such. Same goes for various amounts of Investment Interest Expense, BTDT but not in a number of years.
The 2011 Audit Report does not have the pages of previous reports defining exact amounts of MA Expense, however right before the eyes of anyone reading the report are thse figures:
Model Aviation magazine direct costs ....($1,711,226.00) ...... Up from 1,655,029 2010. About 3.4%. Not Bad!
Model Aviation advertising .....................815,405
Model Aviation subscriptions,,,,,,,,,,,,,,,,,,,,,34,675
Total Income: ....................................... ....$ 850,080.00
Net Income / (Loss) ................................ ($861,146.00) If over 3/4 million yankee $$ loss is a PROFIT then someone must be government Trained. 
Not included is the staff, As of 05-03-2012, the Publications Staff had 11 persons assigned. Their expense is NOT in the cost of MA.
Membership had 9 persons assigned, 2 of which seems to be out of place as 1 Telephone operator and 1 shipping clerk.
Could they be there to make the Membership look a little closer to the Publications Department? ???? 
AMA Audit Reports are about as simple as an Audit Report gets.
And to johnshe, you too have a wrongful position. Monies from an "Unrelated Business" of an IRC 501 (C) (3)Non-Profit can be used like any other funds, other than distributions, etc. yet moneies have a way to fill in where other monies can be used.
Have you read the last EC Meeting, 4/'12?
Those boys used your funds to gather in Muncie to discuss and approve one item: Paraphrased, to approve the principle of a separate administration and accounting for the charitable donation of non-dues revenue. The audit showed, IIRC. $120 for that item. Heck, I donated more than that and what about all those lists of donors in the past 6 months of folks donating monies. That must have been included in Membership monies, but now no breakdowns are displayed. 
To the rest of you: Aren't you glad I got you away from that boring crap about letters to airports drivel?
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Horrace Cain AMA L-93
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