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Old 11-08-2009 | 12:41 PM
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Hossfly
 
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From: New Caney, TX
Default RE: MA Financing Issue Put to Rest

ORIGINAL: Robotech
ORIGINAL: KidEpoxy
MA Ops: $2.2mil Direct Costs out + $1mil AdRev In + $XXmil Gray18 MemberSubscription Xfer = $??mil MA profit
Sounds like a good formula and it happens to reflect a change in the formula that some have tried to use for years in arguing the MA profitabilty point.
The formula that disregarded member subcription tranfer $ was/is incorrect. That is the position many, including mtself, have held through this long and drawn out debate.
Second guessing and speculation has been eliminated.
Put to rest. Over.
Robo, et. al., I was there on the EC when the big MA was being developed. MA was to be a money making vehicle for AMA to not have to increase dues. MA was going to pay most of AMA's expenses. Then one of the first things that caused the brown nosed EC members to hate Horrace Cain surfaced. I was adamantly against the plan, because any person with any concept of associations could see the immense flaws.
In addition the AMA/EC has lied, side-stepped, avoided, and obscured information on a continuos basis. That is the way associations exist. I am an ardent supporter of the NRA. Yet, I have strong objections to their member operation which is as confused as anyone could even imagine. OTOH, they keep government at bay as there are so many politicians that will destroy everything about personal freedom. In fact look what happened the past evening, 11-07-09, another '07 date of infamy.

If you might remember, AMA hid the purchase of the Northrop trade show for months, because a dues increase was used to make the purchase.
Before AMA purchased the Muncie site, I prepared a large document concerning the plan and the area where AMA should locate. That study probably hit the File 13 before it was even opened, yet AMA spokes persons have testified that no one cared to send in any desires concerning AMA's intent to purchase acreage.

Now if you go back and research your old magazines, you will find that as soon as the 2003 dues increase passed, $48 Open dues to $58, Open dues. The gray figure immediately jumped from $12 to $18, a $6 increase - 60% of the total dues increase - was allocated to building up a frigging Association Media, which should be self supporting, as most are, and placed on the shoulders of the membership to bear.

Edited to add: Also you will find EC testimony that the dues increase was because of insurance expense, and to preclude another increase within a couple years. THE TRUTH is that the dues increase was simply to fatten the MA purse to increase the magazine bureaucracy. YOU keep electing these people. [sm=confused.gif]

So argue, P&M, formulate and do as you wish. The bottom line of MA is:

1.) MA Advertising is only a self supporting bureaucratic make-work activity that basically produces nothing of value as far as AMA's organizational message-media is concerned.

2.) The AMA Open membership dues provide the expense monies of the production of AMA's informational newsletter as sent to the membership labeled Model Aviation.

3.) As a member-paid product, the media "Model Aviation" would cost little or nothing more to the membership if it were just a magazine without advertising, and thus require much less of a bureaucracy. But then of course the Peter Principle would be sacrificed.

4.) Model Aviation, as a separate "unrelated business" as defined under the IRC 501 (c) (3), and exclusively owned by the Academy of Model Aeronautics, costs the membership over one million dollars per year as substantiated by the annual audits of AMA's financial position.

5.) Advertising in the magazine makes no difference as it stands. No advertising could possibly reduce the staff expenses and thus reduce production costs.

So that is the final epitaph for those desiring to put it all to rest.