Florida State Convention

Denise Hollywood

July 2017

• EVP Role (ie - What keeps me up at night!)

• Current Revenue Initiatives

• Mitchell & IT Update

• Help Needed

• Thank you State of Florida !

Agenda

Larry Spencer

President

Frank Zaborowski

Rachel Zimmerman

Rebecca Dalton

Emily Rauer

Gamail Mohammed

Lisa O’Loughlin

Melissa Thayer

Doug Birkey

Mason Carpenter

Nicole Kirsch

Abby Gillett

Peter Huessy

Marc Schanz

Barb Taylor

Denise Hollywood

Executive Vice President

Resa Lewis Amanda Grandel

Katie Storm

Henry Sanders

Member & Field

Sharon Kayira

Member Relations:

Janee Williams

Virgie Garzon

Erika Salesses

Field Relations:

Nia Reeves

Airmen & Family

Programs:

Whitney Distaso

Alex Edgar

Aerospace Education:

Christine Brown

Brian Everstine

June Kim

Juliette Kelsey

Eric Lee

Elizabeth Moore

Amy McCullough

Frances McKenney

John Tirpak

Mike Tsukamoto

Chequita Wood

Wilson Brissett

Gideon Grudo

Bridget Dongu

McKinnon Pearse

Nate Davis

Alexandria Browning

Jeneathia Wright

Adiam Habte

Danielle Hawkins

Donna Lang

Diane Rowan

IST: Isaiah Taylor

Ed Cook

Mike Davis

David Huynh

Chris Saik

Ted Yorkshire

StellarXplorers

Alex Edgar

Manager

Executive

Services &

Board Support

Amalia Otero

Manager

Mitchell

David Deptula

Dean

CyberPatriot

Bernard Skoch

Commissioner

Finance

Joe Stangl

Chief Financial

Officer

jHR & Admin

Tonya Childers

Sr. Director

Government

Relations

Keith Zuegel

Sr. Director

Development

Wes Sherman

Sr. Manager

Corporate

Relations

Fred Ullman

Director

Meetings &

Events

Meghan

McClelland

Sr. Director

Member &

Field Relations

Kari Voliva

Vice President

Graphic Design

Zaur

Eylanbekov

Creative

Director

Publications

Adam Hebert

Editor in Chief

Communications

Chet Curtis

Sr. Director

Information

Technology

Falar Fatmi

Chief

Information

Officer

• 2017 Budget:

– $18M Revenue - $19.3M Expense = Budgeted LOSS of $1.3M

• 2018 Budget:

– President tasked by BOD to balance the budget

• “Savings” Account:

– ~ $10M balance

– If AFA continues to lose $1M a year, we could be out of business in 10 years

– BOD approved policy to ensure we have at least 6 months of operating

expense in the “savings” account ( = $10M)

Balancing the books

Change is necessary if AFA is to be sustainable in the future

2017 Revenue Plan - $1M

YTD 2017 Budget

Add’l Budget

Towards $1M

Revenue Increase

Total = Budget +

Additional BudgetYr End Forecast

Delta

Forecast vs Tot

Budget

Advertising 449,837 636,966 10,000 646,966 550,000 -96,966

Corporate Membership 258,500 560,000 10,000 570,000 500,000 -70,000

Exhibit Sales 3,107,660 2,650,000 200,000 2,850,000 3,130,000 280,000

Sponsorship - @ Conf 550,705 480,000 145,000 625,000 625,000 0

Sponsorships – Non Conf 27,000 0 50,000 50,000 50,000 0

Development 599,135 1,180,000 85,000 1,265,000 1,265,000 0

Aerospace Educ Sponsorships 0 10,000 100,000 110,000 50,000 -60,000

AFP Grants/Sponsorship 30,000 57,500 285,000 342,500 100,000 -242,500

Merchandise 5,138 2,500 15,000 17,500 17,500 0

Facility 732,834 1,755,000 100,000 1,855,000 1,755,000 -100,000

TOTAL 5,760,809 7,331,966 1,000,000 8,331,966 8,042,500 -289,466

2017 push – increase revenue by $1M

Background:

• Print media expected to decline between 10-30% over next 2 yrs

• AFA ad sales on steady decline

• New website (fall timeframe) will attract more digital advertisers but

digital does not generate as much revenue

Actions:

• RFP for new Ad Company

• Bundling with other military non profits for non-endemic advertisers

(Walgreens, etc)

• Native Ads

Advertising

BLUF: Ad revenue projection – RED

Corporate Membership Background: • 2017 CM budget = $570,000 (includes $100k stretch goal)

• Paid in full = 42 companies• Renewals in work = 43 companies • 2017 Yr End Projection = $500,000 (85 active corporate member companies)

Pipeline:• 39 companies expired within 12 months = $200K potential revenue• 88 companies expired between 2011-2015 = $424K potential revenue• 128 pure prospects

Actions: • Rescoped CM categories:

• Doolitte $8,000 (Companies with $ 1M - $ 50M Revenue)• Rickenbacker $5,500 (Companies with $50M - $300M Revenue)• Arnold $2,500 (Companies with > $300M Revenue)

• AFA President Letter • Sales & Marketing Plan

BLUF: CM revenue projection – RED

Exhibit Sales

Background:

• Projected to exceed budget by ~ $300K

Actions:

• Moving non profit booths off the main floor to capitalize on paying

customers

• Aggressive Sales & Marketing Plan using our exhibit partner, NTP

• AFA booth relocated by registration

• Evaluating ways to recoup “free registrants” food & beverage costs

beginning with AWS 2018

BLUF: CM revenue projection – GREEN

Sponsorships

Conference / Non-Conference

Background:

• Prior yrs - moderate focus on both conference and non-conference

related sponsorships

Actions:

• Restructured staff to put more focus on conference related sponsorships

• AFA Breakfast Series Sponsorships – 6 industry partners on board now

• Added additional conference sponsorships and bundled packages

• Corp Relations team leading up non conference sponsorships such as

70for70 sponsorship ($20K - Harris Company), sponsorship for Direct

Mail Pin

BLUF: Sponsorship revenue projection – GREEN

Development

Background:

• Majority of Development efforts focused on successful Direct Mail

Campaign

Actions:

• Wounded Airman Cycling Challenge (WACC): raised $56K

(Goal is to get more chapters doing a local WACC in 2018)

• 70th Coin backend premium: additional + $18K revenue vs budget

• Strategy to convert AFM donors to AFA: 160 Converted Donors = $4.9K

• “Daily Report” donation: $650

• Silent Auction / Text to Give campaign for ASC

• Contract for Capital Campaign in work

BLUF: Development revenue projection – GREEN

Aerospace Education

Sponsorships

Background:

• Historically, AEC program

expenses are ~ $400-

$500K per year

Actions:

• Goal: offset expenses

with a new revenue

stream

• Developed Sponsorship

Program to target online

and military-focused

education institutes

• Next target set: AAFES

vendors, etc

• Pitch Rolls Royce as

Platinum Sponsor

BLUF: AE revenue projection – RED

Airman & Family Program

Sponsorships

Background:

• Wounded Airman Program is

restricted

• Historically, WAP did not cover

overhead or staff expenses

Actions:

• Goal: offset expenses with a

new revenue stream

• Developed Sponsorship

Program to target non-DoD

companies such as medical &

pharmaceutical

• Grant increase from Airpower

Foundation

• SkyBall sponsorship

• Donations to AFP to cover

staff/overhead

BLUF: AFP revenue projection – RED

Merchandise

Background:

• Merchandise sales limited to Hangar Store

Actions:

• Airman for Life logo contest

• Increased merchandise offerings

• Airman for Life shirts

• 70th Anniversary items

• Using Ebay and Hangar Store until new website transitioned

then we plan to incorporate E-Commerce store

• Andrews AFB 70th birthday Airshow display • Selling merchandise at Andrews BX – August 2017

BLUF: Merchandise revenue projection – GREEN

Facility

Background:

• AFA owns the HQ building -- $5M mortgage

• Currently, 94% of building suites are rented

• 2 office suites for rent (4,000 sqft and 1,111 sqft)

• Potential for additional $127,000 in revenue if all suites rented

Actions:

• New leasing company on board as of Jun 2017

• New advertising strategy

• Leveraging lease with “Vago” for video production services

• New tenant on board – renovations required in 2017 – additional

revenue to be realized in 2018

BLUF: Building revenue projection – RED

$1M Revenue Plan

Non- Restricted

• Mindset on staff has shifted to revenue generation

• New Finance software system (Intacct) provides more user friendly

and timely reports so managers can focus on Budget vs Actuals

and course correct as needed

• Communications efforts now include marketing tactics

• Old: “Thanks for attending the AFA breakfast”

• New: “Thanks for attending the AFA breakfast. If you are not a

member, here is how you can join.”

• Updated Membership proposal in work for delegate vote during

Convention

BLUF: Projected to see approximately $600K in additional revenue to offset $1.3M loss

Mitchell InstituteEvents:

• Hosted over 30 events with 9 more scheduled in July and August

• 5 “Mitchell Hours” with defense leaders addressing specific aerospace

topics; 5 Space Breakfasts and 17 Nuclear Deterrence events on Capitol

Hill; two roundtable dinners with AF leadership; two media roundtables

Publications: • Published three new studies: America's Nuclear Backbone: The Value of

ICBMs and the New Ground-Based Strategic Deterrent; Desert Storm: 25

Years Later; Consolidating the Revolution: Optimizing the Potential of

Remotely Piloted Aircraft

• Released two policy papers and six forum papers

Other: • Lt Gen Deptula testified before the SASC Subcommittee on the topic of All

Arms Warfare in the 21st Century

• Featured in print, radio, and TV media over 45 times

www.mitchellaerospacepower.org

IT Update

• Implemented technology policies to include training and cyber security best practices

• Launched meeting software Vidyo

• Migrated email and file server to Microsoft cloud

• Enhanced Internet infrastructure to 200 Mbs

• Centralized email blast systems to Pardot (Salesforce App)

• Implemented Financial Management System i.e. Intacct

• Going live with the new Association Management System i.e. Salesforce in August

• New chapter portal will be launched later this year

• New website on Adobe platform for AFA and Magazine will be launched in first quarter of 2018

• New AFA App on Adobe platform will be launched in first quarter of 2018

User data testing key to IT transition success

• Individual Membership recruitment & retention

• Community Partner memberships

• Aerospace Education and WAP Sponsors to offset expenses

• Focused grass roots efforts

– Should chapters donate to another non-profit when the overall organization is in the RED?

– Can we better align our efforts such as Wounded Airman Cycling Challenge to capitalize on

the reach of our 200 chapters and 92,000+ members

• The future– Standardizing the AFA brand via website and tools

– Incorporating IT tools at chapter level

– Should smaller chapters struggling with membership become Communities of Interest/Virtual

Chapters?

Help Needed

Change is necessary if AFA is to be sustainable in the future

Thank you

Florida Chapters!