I’ve received and reviewed the 2013 tax return for Toastmasters International. It appears to identify the Revitalized Education Program (at least in 2013) as NogginLabs of Chicago, “your guide to building the best e-learning in the world”, a “certified women-owned small business”. Toastmasters is included on their web site’s client list, and they appear to have a few employees in Toastmasters clubs, based on LinkedIn profiles.
Total program revenue increased by 6.0% from 2012 (roughly in line with club and membership growth), and total expenses increased by 9.1%. Net “profit” was almost the same as the previous year, up 7.8% (about $3M each year). The biggest expense, salaries and employee benefits ($8.6M), are 30.1% of all expenses, and went up by 11.4%. Revenue is mostly membership fees ($23.5M), followed by district conferences ($4.1M), other district income ($1.0M), annual convention income ($0.8M), and charter fees ($0.2M).
Sales (manuals, $1.8M) slightly exceeded cost of good sold ($1.7M), yielding a small profit on those items. Historically, items in the store are priced near cost, though it’s unclear where shipping fees are reported. Inventory levels decreased from start to end of 2014, from $979K to $778K, suggesting improved inventory management. Magazine advertising brought in $29K (which was unrelated business income, but tax-free, since the magazine costs more).
Cash and investments add up to $43M at the end of 2013, compared to $37M at the start. The liquid-assets-to-annual-expenses ratio moved from 1.4 years of expenses to 1.5 years of expenses in the bank, right in the middle of the recommended 1-2 year ratio for large non-profits. In addition to that, land, buildings, and other capital assets are valued at $4.5M after depreciation.
Total assets grew by 13.5%, while total liabilities grew by 11.1%; net assets grew by over $5M, or by 13.9%.
Employees
There are now 161 employees (up from 149 the previous year, and 136 the year before that), an 8.1% increase, which accounts for most of the 11.4% increase in total salaries and benefits.
Eight employees were paid over $100K and so are reported by name. Their compensation is 15% of the total organization compensation. In addition to the amounts listed below, they also typically received deferred compensation (like 401(k) matches) of up to $14K each, and other nontaxable benefits (like employer-paid health insurance) of up to $17K each. There was a separation payment to an employee, but is under a confidentiality agreement and details are not reported.
- CEO Dan Rex, $349K (increase of 14% over the previous year)
- Secretary/treasurer Sally Newell-Cohen, $203K (increase of 15%)
- Technology services director Hamidreza (Sam) Farajian, $153K (new hire in 2013, partial year)
- Controller John Bond, $147K (increase of 9%)
- Marketing communications director Monique Berry, $124K (not reported in 2012, new hire?)
- Member support director Darci Maenpa, $121K (down 6%)
- District services manager Kristen Rolapp, $107K (not reported in 2012, presumably was under $100K)
- Logistics manager Steve Loe, $103K (also not reported in 2012)
Vendors and expenses
The five vendors paid the most were:
- Walsworth Print Group (printing and mailing services), $1.6M (6% decrease from previous year)
- Asendia USA (shipping), $1.6M (23% increase)
- Cigna Healthcare of California (employee health insurance), $1.1M (22% increase)
- NogginLabs (educational material), $384K
- Freeman Audio Visual (A/V production services, incl. annual convention), $381K
- Plus 15 more (not named) that were paid at least $100K in 2013
Some of the other expenses include:
- $257K was paid for software
- $252K for training and development
- $109K for translations
- $75K for Internet services
- $23K for team development
Hi Mike, this is great, thanks for putting it together.
I have a couple of more questions – do you know who will have the answers?
The Annual report states a figure of $7M for communications – I assume the $1.6M for Walsworth Print is the magazine (or is that manuals?) any idea what the rest is made up of?
Member support – how is this different from support services?
Logistics $2.6M for what exactly?
On the investment side – do you know if the investment policy is published anywhere? That is what do toastmasters invest in, and NOT invest in. Some of our members have been asking.
Another comment – I would assume that the cost of the educational materials includes the costs of the CL and CC manuals which generally have no associated revenue (other than the new member fee).
It would be great to talk to get some of these answers, maybe we can arrange a call.
I have no inside information beyond what’s in the tax return, I provided information where I could. Yes, I think Walsworth handles the magazine, but it could include other printing, there’s no way to know.
I’m not sure what you mean by “support services”, there’s nothing by that name in my post or the tax return.
The logistics manager would likely be dealing with things like building upkeep, mailroom, things like that.
There is indeed an investment policy published here, policy 8.7. I’m VERY surprised members would be asking about that.
http://www.toastmasters.org/~/media/D9189C38841E412491167FC6C47F45F8.ashx#page=197 (large PDF)
I have no idea what they include in the cost of educational materials, but common sense would suggest that it includes all manuals, at a minimum, regardless of whether they’re individually sold. That $20 new member fee basically covers those manuals and a bit more, and remember, there’s also two free advanced manuals on completing a CC.
Remember, if it’s not in the tax return, I’m speculating, just trying to read between the lines. I have no additional information myself, beyond a lot of general business experience and education. If you REALLY need accurate answers, you should contact WHQ, but I’m skeptical they will provide any details beyond what’s already published.