Post on 23-Feb-2016
description
C.A.R. 2012-2014 Strategic Planning
Presented by Joel Singer
September 2011
C.A.R.
CREPAC IMPAC CREPACFederal
ScholarshipFoundation
Organizational Chart
CREIEC
REBS
C.A.R.
CREPAC IMPAC CREPACFederal
ScholarshipFoundation
Organizational Chart
CREIEC
REBS
C.A.R.
CREPAC IMPAC CREPACFederal
ScholarshipFoundation
HousingAffordability
Fund
EducationFoundation
REBT, Inc100%
zipLogix, LLC64.4%
RERS, LLC100%
calMLS(calREED)
Current Organizational Chart
2012 Budget Analysis
RevenueExpendituresMembership
Revenue Expenses Net Membership
2011 Projection 25,908,100 25,879,500 28,600 162,000
2012* (note) 25,545,000 26,700,000 (1,155,000) 154,000
2012 Proposed 27,320,800 26,798,200 522,600 154,000
Budget Review
Note: Forecast based on 2011 projection with inflation adjustment before budget review
'96 '06 '10 '11 P 12 B0
10,000
20,000
30,000
40,000
50,000
60,000
RERS,LLC
zipLogix
REBT, Inc
REBS
C.A.R.
$ Millions
14
49
4036
C.A.R. & SubsidiariesCombined Revenue
37
25.9 26.824.7 24.1 24.8 25.8 26.727.3
25.927.427.1
28.9
33.833.9
0
5
10
15
20
25
30
35
40
2006 2007 2008 2009 2010 2011 2012
Revenues Expenditures$ Millions
Revenue vs. Expenditures ( Excluding Subsidiaries)
2011 Projected Expenditures
Legal21%
Commu-nication/
Marketing19%Governance
14%Zipform
13%
Member Info12%
Gov't Af -fairs9%
Operations7%
Digital Ink2%
ZipVault2%
others1%
2012 C.A.R. Sources of Revenue
Dues47%
REALTOR® Action Assessment16%
Admin Fee7%
Intercompany Transfer
5%
Investment Income
4%
PAF4%
IAF4%
Communication3% EXPO
3%
Others3%
New Member/Late Fee
2% CRE Magazine2%
2012: Where Your Dues Dollar Is Invested
Legal23%
Communi-cation18%Governance
15%
Member In-formation
13%
zipForm®13%
Governmental Affairs
9%
Operation6% Digital Ink
2%Others
1%
10 2012 10 2011RANK Program Description Budget RANK Projection
1 Member Legal Services 2,952,700$ 2 2,554,800$ 2 ZipForm® 2,696,100 1 2,842,200 3 Realtor® Advertising 2,026,700 3 2,025,900 4 Governmental Relations 1,823,700 4 1,856,300 5 Board of Directors 1,265,500 6 1,325,000 6 Corporate Legal Services 1,259,000 5 1,468,800 7 Research and Economics 954,100 7 905,800 8 Communications 657,800 9 659,400 9 Internet Development 617,300 8 884,700
10 Membership Development 588,000 10 658,900
10 Largest Program Expenditures in 2012 & 2011
Number of Budgeted Staff Positions
118
121120
121
124.5
128.5
118
112
114
116
118
120
122
124
126
128
130
2006 2007 2008 2009 2010 2011 2012
Number of Staff
Member-to-Staff Ratio
1,1001,198
1,663
1,406
1,301
0
200
400
600
800
1000
1200
1400
1600
1800
'00 '05 '10 '11 P 12 B
90,500
154,000162,000
211,254
146,025
102,655
148,346
58,749
-
40,000
80,000
120,000
160,000
200,000
240,000
1971 1980 1983 1990 1997 2006 2011 P 2012 FCycle 1: 1980 148,346 (peak) to 1983 102,655 (trough). -30.8%Cycle 2: 1990 146,025 (peak) to 1997 90,500 (trough). -38.0%Cycle 3: 2006 211,254 (peak) to
9 Ye
ars
3 years
7 years7 years
9 ye
ars
6 years
Membership Comparison
10 10 10
4939
115115115
9089
1010 1010 10 10 10
0
20
40
60
80
100
120
140
2000 2001 2002 2011 2012 B
Dues IAF PAF RAA
Membership Dues Per Member
Membership dues was reduced in 1995 from $77 to $64. IAF $10 was implemented in the same year.
3738
46
24
1418
3557%
44%
49% 48%44%
34%
42%
5
10
15
20
25
30
35
40
45
50
55
1990 1995 2000 2005 2010 2011 P 2012 B20%
30%
40%
50%
60%
70%
80%Total Revenue ($ millions)Dues as % of Total Revenues
Revenue Percentage
Dues Revenue as Share of C.A.R. & Subsidiaries Total Revenue
Member Benefit Provided in Terms of $ Amount
2012 Program Cost $24,512,000
Dollars spend per member in 2012 is $159
Compared to the $115 membership dues paid to support 2012 Programs.
REALTOR® Advertising
Media:• Radio• Television• Online Advertising• Video• Social Media
Core Program Cost $2,026,700
California Real Estate MagazineRevenue
2359
501 576469
0
500
1000
1500
2000
2500
2006 2010 2011 2012
Revenue
$ Thousand
149
511565
383
0
100
200
300
400
500
600
2006 2010 2011 2012
Revenue
Online AdvertisingRevenue
$ Thousand
New Member Services Added Last 10 yearsZipForms ® Digital InkZipVaultForms Advisor/TutorStatewide OmbudsmanYoung Professionals Network AORN TouchMember Mobilization Smart
Phone ApplicationC.A.R. Online Redesign
Consumer Advertising CampaigncalMLSREALTOR® Showcase Customer Contact CenterField Program Housing AffordabilityePubsLegal Hotline ExpansionStrategic DefenseCommunication Video Content
Liquid Reserves
5.21
40.3 40 41.1
5.57
4.4 4.7
20.1 19 18.9
05
1015202530354045
1990 2000 2010 2011 P 2012 B
Reserves ($ Millions) Months of Reserves
REBS.Revenue $3.9million
Net Surplus $244,300
REBT, Inc.Revenue $344,000
Net Surplus $297,000Before Transfer
zipLogix (64.4%)Revenue: $6.1 million
Net Surplus $1.4 million
RERS, LLC Revenue $37,000 Net Loss ($32,100) Before Transfer
2011 Projection for Profit Entities
Combined Revenue
0
2
4
6
8
10
12
1996 2000 2010 2011 P
RERS (100%)
zipLogix64.4%
REBT, Inc
REBS
REBS & Subsidiaries
$ Millions
REBS & Subsidiaries Combined Net Income
-2
-1
-1
0
1
1
2
2
3
3
4
4REMTRERS (100%)REBOSzipLogix 64.4%REBTREBS
20001996
$ Thousands
2010 2011 P
1
1.51.8
2
3.5 3.5
2 2
1
1.7
0
1
2
3
4
1996 2000 2005 2006 2007 2008 2009 2010 2011P
2012B
REBS Transfer to C.A.R.($ Millions)
REBS, Inc. 1.4$ REBT, Inc. 0.8$ zipLogix (64.4%) 4.6$ Total 6.8$
Million
REBS Inc. and SubsidiariesProjected Cash Balance – December 31, 2011
CREPAC
IMPAC CREIEC
CREPAC Federal
Political Action Committees
Membership Dues$184
$115 (62.5%)
Support Programs
$69 (37.5%)
Support Political Activities
Membership Dues and Assessments
Political Assessment included in Membership Dues
In 1995 Issues Action Fund (IAF) $10In 2000 Political Action Fund ( PAF) $10In 2011 REALTOR® Action Assessment (RAA) $492012 Proposed REALTOR® Action Assessment $39
C.A.R. MemberDues $184
C.A.R. Dues$115
PAFPolitical Activities Fund
$10
IMPAC-Local
Matching10% ofRAFVoluntary
Contribution
IMPAC- StateMatching 5% ofRAF VoluntaryContribution
Balance-PAF
Funds support
All Admin CostsFor IMPAC/CREPAC
& LCRC
Remaining Balance
Allocate 70% toState IMPAC
Allocate 30% toLocal IMPAC
RAA$49
Allocation
CREPAC45%
LCRC30%
CREIEC25%
C.A.R. Membership Dues
IAFIssues Action Fund
$10
REALTOR® Action Fund(RAF) contribution
Amount $50 to $5,000
Housing Affordability Fund(HAF)
VoluntaryAmount up to $10
RAF contribution$50 to $98
Voluntary Allocation
CREPAC45%
$50 to $98
LCRC30%
$50tof $98
CREIEC25%
$50 to $98
RAF contribution$99 to $5,000
To CREPAC Federal
RAF contribution with the corporate check
$99 to $5,000 allocated to CREIEC
VoluntaryContribution
Voluntary Contribution
Program funded byRAA
Current Dues, Assessments and Voluntary Contribution
RAA ($49)$7,530,000
CREPAC State$3,098,250
CREIEC$1,721,250
Communications Membership
Value Campaign Material$20,000
Federal Govt. Relations
Officer’s Lobbying Trip
$25,100
Political Affairs Fundraising$317,900
Member Mob.Phone App.
$60,000
Program Costs$645,000
2011 REALTOR® ACTION Assessment Allocation
LCRC$1,136,025
IMPAC Local$929,475
PAF Field Program (KC, LL)
$222,000
33
*70% of RAA after program costs *30% of RAA after program costs
Projected as of December 31, 2011
RAA ($39)$5,698,000
CREPAC State$1,940,979
CREIEC$1,078,322
RAF Receptions $175,000
Fed Gov’t Relations (Officer’s
Lobbying Trip) $25,100
Campaign School
$50,000
RAF Fundraising/RPC
$663,500
Program Costs$1,384,713
2012 REALTOR® ACTION Assessment Allocation
LCRC$711,692
IMPAC Local$582,294
PAF Field Program
$4,313
34
*70% of RAA after program costs *30% of RAA after program costs
C.A.R. Electoral Services$39,700
Member Mob Phone App
$35,000
CommunicationsMembership
Value Campaign materials$20,000
CREPAC Local Candidate Field
Program$372,100
Based on 2012 Proposed Budget
RAA ($39)$5,698,000
CREPAC State$1,185,619
CREIEC$658,677
RAF Fundraising$743,500
Fed Gov’t Relations $211,400
CREPAC$252,700
Campaign School
$50,000
Program Costs$3,063,291
2012 REALTOR® ACTION Assessment Allocation
LCRC$434,727
IMPAC Local$355,686
IMPAC$133,800
35
*70% of RAA after program costs *30% of RAA after program costs
RAF Receptions$175,000
CREPAC Local Candidate Field
Program$372,100
Member Mob Phone App
$35,000
C.A.R. Electoral Services$39,700
CommunicationsMembership
Value Campaign materials$20,000
PAF Field Program $124,241
Gov’t Relations $905,850
Based on Task Force Recommendations
BASED ON TASK FORCE RECOMMENDATIONS
Program Total C.A.R. General Fund (%) C.A.R. General Fund ($) NAR (%) NAR ($) PAF (%) PAF ($) IAF (%) IAF ($) RAA (%) RAA ($)
Government Relations 4100 $1,811,700 50% 905,850 50% 905,850
Federal Govt. Relations 4110 $422,800 50% 211,400 50% 211,400
CREPAC 4700 $505,400 50% 252,700 50% 252,700
Campaign School 4701*** $50,000 100% 50,000
IMPAC 4800 $267,600 50% 133,800 50% 133,800
LGR/Legislative Committee 4140 $172,500 54% 83,106 18,600 13% 20,007 33% 50,787
RAF Fundraising 4121 $760,300 16,800 100% 743,500
PAF: Member Mob 4120 $406,400 100% 406,400
PAF: Field Program 4122 $653,900 81% 529,659 19% 124,241
PAF: Member Ed 9102 $505,000 100% 505,000
RAF Receptions 9104 $175,000 100% 175,000
PAF Overhead 9100 $7,000 100% 7,000
CREPAC Field Program $372,100 100% 372,100
C.A.R. Electoral Services $39,700 100% 39,700
Member Mob. Enhancement (4120A) $54,800 100% 54,800
Member Mob. Mobile Phone App (8260) $38,700 10% 3,700 90% 35,000
Communications, MVP (6000) $20,000 100% 20,000
$6,262,900 $1,204,056 $1,522,866 $437,287 $3,063,291 6,227,500
BASED ON 2012 PROPOSED BUDGET
Program Total C.A.R. General Fund (%)
C.A.R. General Fund ($) NAR (%) NAR ($) PAF (%) PAF ($) IAF (%) IAF ($) RAA (%) RAA ($)
Government Relations 4100 $1,811,700 100% 1,811,700
Federal Govt. Relations 4110 $422,800 94% 397,700 6% 25,100
CREPAC 4700 $505,400 100% 505,400
Campaign School 4701*** $50,000 100% 50,000
IMPAC 4800 $267,600 100% 267,600
LGR/Legislative Committee 4140 $172,500 88% 151,500 3% 6,000 9% 15,000
RAF Fundraising 4121 $760,300 2% 16,800 11% 80,000 87% 663,500
PAF: Member Mob 4120 $406,400 100% 406,400
PAF: Field Program 4122 $653,900 99% 649,587 1% 4,313
PAF: Member Ed 9102 $505,000 100% 505,000
RAF Receptions 9104 $175,000 100% 175,000
PAF Overhead 9100 $7,000 100% 7,000
CREPAC Local Candidate Field Program $372,100 100% 372,100
C.A.R. Electoral Services $39,700 100% 39,700
Member Mob. Enhancement (4120A) $54,800 100% 54,800
Member Mob. Mobile Phone App (8260) $38,700 10% 3,700 90% 35,000
Communications, MVP (6000) $20,000 100% 20,000
$6,262,900 $2,364,600 1,717,787 773,000 1,384,713 6,240,100
REALTOR® Action Assessment2011 - $49/2012 - $49 2011- $49/2012- $39
RAA Revenue 2011 $7,472,500 $7,472,500RAA Revenue 2012 $7,105,000 $5,698,000
Total revenue $14,577,500 $13,170,500
RAF - 2011 State (LCRC & Federal not included) $550,000 $550,000RAF - 2012 State (LCRC & Federal not included) $650,000 $650,000NAR ( State Allocation) $364,210 $364,210
Administrative Cost 2011 -$645,000 -$645,000Administrative Cost 2012 -$1,400,000 -$1,400,000Less Local allocation 30% -$3,759,750 -$3,337,650Global Expenditure Plan -$8,820,000 -$8,820,000Excess $1,516,960 $532,060
Membership 154,000 154,000 Excess per Member $9.85 $3.45
Governors Reserve IE 1,000,000 Primary Incumbents & Candidates 780,000 General Incumbents & Candidates 780,000 Senate/Assembly Leadership 400,000 Coaltions & Causes 400,000
California Democratic Party (CDP) 250,000 California Republican Party (CRP) 250,000 Independent Expenditures 560,000 IE Campaigns 4,000,000 Polling (250,000) & Research ($150,000) 400,000 Total Expenses 8,820,000$
Global Expenditure Plan 2011-2012
Year 05-06 07-08 09-10
CREPAC 3,490,093$ 2,675,225 1,931,824 CREIEC $ 1,628,064 955,911 2,861,436
TOTAL 5,118,157$ 3,631,136 4,793,260
State PAC’s Expenditures In A Two Year Cycle
RANK Contributor PAC Total Contributions1 Pechenga Band of Luiseno Mission Indians 43,360,697 2 Morongo Band of Mission Indians 38,453,597$ 3 Tribes for Fair Play No on 94 95 96 & 97 24,754,413 4 California Teachers Association 22,621,067 5 Agua Caliente Band of Cahuilia Indians 21,650,925 6 Clean Energy Fuels Corp 18,811,350 7 PG&E Corp 16,229,562 8 Edison Internation 14,583,992 9 Service Employees International Union 13,408,998
10 Pala Band of Mission Indians 13,178,219 33 California Association of REALTORS® 2,562,300
Top 10 PAC Contributors 2007-2008 Election Cycle
FUNDS 2012 F 2011 P 2010 Actual
RAF 1,750,000 1,350,000 2,874,914 RAA 5,698,000 7,530,000 -
IAF 1,461,300 1,530,000 1,621,247
PAF 1,461,300 1,530,000 1,621,247 TOTAL 10,370,600 11,940,000 6,117,408
Political Fundraising
Political Fundraising
0
2
4
6
8
10
12
14
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD
RAAIAFPAFRAF4.9 5.1
6.5
$ Millions
7.89.3
8.56.8 6.0 6.1
11.5
Political Action Committee- Fund Balance As of July 31, 2011
CREPAC 4.9$ IMPAC 8.5$ CREPAC/Federal 0.7$ CREIEC 1.8$ Total 15.9$
Millions
FOUNDATIONS
ScholarshipEndowment$1.2 million
EducationEndowment
$89,500
Housing Affordability Funds Funds Available $2.7 million
FoundationsAs of July 31, 2011
$3.9 million
1.8
2.62.4
0.0
0.3
0.6
0.9
1.2
1.5
1.8
2.1
2.4
2.7
C.A.R. Contribution Direct Contribution Contribution through Dues
$ Millions
Housing Affordability FundSince Inception, as of July 31, 2011
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 P -
300,000.0
600,000.0
900,000.0
1,200,000.0 NAR Contribution
C.A.R. Contribution
Contribution Direct
Contribution-Dues
$ Millions
156
500
500
500500
500
420
240208317286
300
415
189
189209265305280
216
178
Housing Affordability Fund
117
194
SPF recommendations on the 2012 C.A.R. Budget and Augmentations tobe presented by Don Faught, Treasurer
Questions?