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The 2018 990 tax return for Toastmasters International has been released. Total revenue was up 10.0%, and expenses were down 4.0%. Total salaries were down 12.9% (34% of all expenses, down from 37% in 2017), even though the number of employees is up from 181 to 236 (up 30%, partly a recovery from staff loss during the Denver move the previous year). <\/p>\n\n\n\n
Expenditures on club-building and leadership training by world (not \nTM) region are interesting, it does cost significantly more to support \nmembers outside of North America.<\/p>\n\n\n\n
The five largest vendors for Toastmasters were:<\/p>\n\n\n\n
24 more companies were paid at least $100K (each) in 2018.<\/p>\n\n\n\n
Staff paid over $100K\/year must be reported (per U.S. non-profit tax law), listed below. This year, some employees (not specifically identified) received relocation benefits (which were grossed up to cover taxes<\/a>) or retention incentives to stay on until the move (all included in the total compensation reported below).<\/p>\n\n\n\n This year, for the first time, it appears most of the people listed below received a bonus or incentive payment (in 2017, only Dan Rex and Jennifer Quinn received such payments). Interestingly, many of these staffers are showing flat or even a small decrease in base compensation, probably a result of the lower cost of living in Denver, compared to the former WHQ location in Orange County.<\/p>\n\n\n\n The CEO\u2019s compensation was established using a compensation board committee, the form 990 tax returns from other organizations, a written employment contract, a compensation study or survey, and approval by the board or compensation committee (per the tax return, Schedule J). (The tax form includes one other method for determining compensation which is not used by TI, an independent compensation consultant.)<\/p>\n\n\n\n Expenses did include paying for first-class or charter travel, travel for companions, and tax indemnification\/gross-up payments (per the tax return), following a written reimbursement policy, and requiring substantiation of expenses.<\/p>\n\n\n\n Total program revenue shrank by 4.6%, to a total of $37.8M. The Toastmasters district conferences globally took in $3.2M in revenue (down 34%, likely due to eliminating the October\/November district conferences, an average of about $9 per member). The annual convention pulled in $1.2M (down 2% from 2017). For materials sold, the sales revenue only covered half the cost, resulting in a 51% loss on sales. In 2017, the loss was 6.8%, while in 2016, there was an 18.2% profit margin<\/p>\n\n\n\n Total assets grew by 2.1%, to $52.9M, of which $24.9M is cash and investments, equal to 0.63 years of expenses (up from 0.52 years in 2017, 0.56 years in 2016, and 1.2 years in 2015), below the range of the recommendation for non-profits to have 1-2 years of expenses saved up in reserves. The land and building at WHQ is valued at a net of $25.9M (down 8.5%). Inventory has decreased by another 13% (after decreasing by 8% in 2016), to $691K.<\/p>\n\n\n\n Net assets grew by almost $4M (10.7%), mostly due to savings and temporary cash investments growing by $3.8M and accounts payable and accrued expenses shrinking by $3.6M (other smaller shifts canceled some of this out).<\/p>\n\n\n\n Donations to Toastmasters International totaled $104K, compared to $76K in 2017 and $40K in 2016 (likely a result of the new marketing of the Smedley Foundation). Donations over $5K must be reported, and two donors met the threshold. F. Dian Prasko of Colony, Kansas, donated $5K (she apparently passed on <\/a>in November 2018), and the Homer N Allen Charitable Trust of Madison, Florida, donated $25K (details on the trust here<\/a>).<\/p>\n\n\n\n Two organizations are identified as related, \u201cToastmasters International Singapore Ltd\u201d and “Toastmasters International (Hong Kong) Ltd”, both companies for \u201clegal and compliance administration\u201d (also controlled by TI).<\/p>\n\n\n\n Click here <\/a>for the full 2018 tax return.<\/p>\n\n\n\n 2017 tax return analysis<\/a> The 2018 990 tax return for Toastmasters International has been released. Total revenue was up 10.0%, and expenses were down 4.0%. Total salaries were down 12.9% (34% of all expenses, down from 37% in 2017), even though the number of employees is up from 181 to 236 (up 30%, partly a recovery from staff loss […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[134],"class_list":["post-1177","post","type-post","status-publish","format-standard","hentry","category-miscellaneous-toastmasters","tag-tax-returns"],"_links":{"self":[{"href":"https:\/\/mikeraffety.com\/blog\/wp-json\/wp\/v2\/posts\/1177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mikeraffety.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mikeraffety.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mikeraffety.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mikeraffety.com\/blog\/wp-json\/wp\/v2\/comments?post=1177"}],"version-history":[{"count":5,"href":"https:\/\/mikeraffety.com\/blog\/wp-json\/wp\/v2\/posts\/1177\/revisions"}],"predecessor-version":[{"id":1230,"href":"https:\/\/mikeraffety.com\/blog\/wp-json\/wp\/v2\/posts\/1177\/revisions\/1230"}],"wp:attachment":[{"href":"https:\/\/mikeraffety.com\/blog\/wp-json\/wp\/v2\/media?parent=1177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mikeraffety.com\/blog\/wp-json\/wp\/v2\/categories?post=1177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mikeraffety.com\/blog\/wp-json\/wp\/v2\/tags?post=1177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Revenue and assets<\/h4>\n\n\n\n
Related organizations<\/h4>\n\n\n\n
2016 tax return analysis<\/a>
2015 tax return analysis<\/a>
2014 tax return analysis<\/a>
2013 tax return analysis<\/a>
2012 tax return analysis<\/a>
2011 tax return analysis<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"