by Jennifer Cauhorn

We are pleased to provide our annual financial report. This report covers Fiscal Year 2019 which began October 1, 2018, and concluded September 30, 2019. Following is an explanation of the income and expenses for that period.

Jennifer Cauhorn
Transition & Event Consultant

Download Fiscal Year 2019 Financial Statement

Income

Overall, income decreased by $35,474. There are several explanations for this:

  1. A continued decline in membership renewal. Based on responses received to surveys of those not renewing, this is largely due to churches and schools either eliminating or reducing the available budget for handbell programs. Others reported retirement as a reason for non-renewal.
  2. Event registration was down just over $30,000. The postponement of Distinctly Bronze East due to Hurricane Florence led to a much smaller event than we normally hold. This event normally produces a modest profit for HMA but ended with a slight loss because of the lower attendance and additional expenses that came with the relocation. In addition, National Seminar registration, while still very good, was less than in 2018, which was one of the best-attended events for HMA in many years.
  3. Contributions were up significantly because of more targeted fundraising efforts and a very successful silent auction at National Seminar.

Expenses

  1. Expenses came in $36,019 under the previous fiscal year. While most line items contributed to that savings, a couple came in above past totals.
  2. Personnel changes such as John Behnke’s retirement, lead to a savings of just over $5000 in personnel costs.
  3. Office operations were more this year primarily due to the cost of having our attorneys review the national bylaws and area model bylaws to ensure both were compliant with state and federal statutes. Our trademark filings were also renewed this year. This only happens every 10 years.
  4. Member services in FY18 included the cost of providing Certification accreditation training to areas so they may more easily offer these courses at area events. That expense did not exist in FY19.
  5. Music publishing expenses were lower in FY19 because we approached the promotion of our new crop of music in a different way. We did not incur the cost of printing and mailing thousands of score booklets. Instead, we made those resources available online and promoted their availability through email, social media, and mailed postcards.
  6. Event expenses were down when compared to FY18 largely because of lower catering costs for National Seminar. There were incremental savings in other line items for events, but catering was the primary source of this savings.

Overall, our bottom line for Net Ordinary Income was about the same as the previous Fiscal Year. If Distinctly Bronze East had happened as planned, we would likely have ended the year at near break-even status. Other Income & Expense took a hit because of the volatile market situation at the end of the third quarter of 2019. However, our investments did perform well enough to end the year with a net income of $8462.

Looking forward to Fiscal Year 2020, it will be difficult to forecast a year-end under the current situation with COVID-19. The uncertainty of whether we will be able to hold National Seminar and how it will be impacted by this as well as the impact closures and the current economy will ultimately have on membership dues, present a unique financial challenge for Handbell Musicians of America. The national board and staff are diligently monitoring the situation and are acting quickly to take advantage of potential grants and loans that may be available to us through various federal relief and stimulus programs. So far, we have received a PPP (Payroll Protection Program) loan through the CARES act and fully expect that to be forgiven per the rules of the Small Business Administration. The safety and health of our members and all in the handbell community remains our priority and must be balanced against the financial stability and future of the organization.

Income

Overall, income decreased by $35,474. There are several explanations for this:

  1. A continued decline in membership renewal. Based on responses received to surveys of those not renewing, this is largely due to churches and schools either eliminating or reducing the available budget for handbell programs. Others reported retirement as a reason for non-renewal.
  2. Event registration was down just over $30,000. The postponement of Distinctly Bronze East due to Hurricane Florence led to a much smaller event than we normally hold. This event normally produces a modest profit for HMA but ended with a slight loss because of the lower attendance and additional expenses that came with the relocation. In addition, National Seminar registration, while still very good, was less than in 2018, which was one of the best-attended events for HMA in many years.
  3. Contributions were up significantly because of more targeted fundraising efforts and a very successful silent auction at National Seminar.

Expenses

  1. Expenses came in $36,019 under the previous fiscal year. While most line items contributed to that savings, a couple came in above past totals.
  2. Personnel changes such as John Behnke’s retirement, lead to a savings of just over $5000 in personnel costs.
  3. Office operations were more this year primarily due to the cost of having our attorneys review the national bylaws and area model bylaws to ensure both were compliant with state and federal statutes. Our trademark filings were also renewed this year. This only happens every 10 years.
  4. Member services in FY18 included the cost of providing Certification accreditation training to areas so they may more easily offer these courses at area events. That expense did not exist in FY19.
  5. Music publishing expenses were lower in FY19 because we approached the promotion of our new crop of music in a different way. We did not incur the cost of printing and mailing thousands of score booklets. Instead, we made those resources available online and promoted their availability through email, social media, and mailed postcards.
  6. Event expenses were down when compared to FY18 largely because of lower catering costs for National Seminar. There were incremental savings in other line items for events, but catering was the primary source of this savings.

Overall, our bottom line for Net Ordinary Income was about the same as the previous Fiscal Year. If Distinctly Bronze East had happened as planned, we would likely have ended the year at near break-even status. Other Income & Expense took a hit because of the volatile market situation at the end of the third quarter of 2019. However, our investments did perform well enough to end the year with a net income of $8462.

Looking forward to Fiscal Year 2020, it will be difficult to forecast a year-end under the current situation with COVID-19. The uncertainty of whether we will be able to hold National Seminar and how it will be impacted by this as well as the impact closures and the current economy will ultimately have on membership dues, present a unique financial challenge for Handbell Musicians of America. The national board and staff are diligently monitoring the situation and are acting quickly to take advantage of potential grants and loans that may be available to us through various federal relief and stimulus programs. So far, we have received a PPP (Payroll Protection Program) loan through the CARES act and fully expect that to be forgiven per the rules of the Small Business Administration. The safety and health of our members and all in the handbell community remains our priority and must be balanced against the financial stability and future of the organization.

Jennifer Cauhorn
Transition & Event Consultant

Download Fiscal Year 2019 Financial Statement


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