Author’s note: This is the third year that I have reported on the financial state of the non-profit organizations of the massage therapy profession. The information I use to write these is obtained from www.guidestar.org, which is a clearinghouse of information on non-profits. If a non-profit does not provide their own Form 990 filing to Guidestar, it will be provided by the IRS, providing the organization meets the obligation of public disclosure. I am not an accountant or a financial expert. I merely offer this series as a source of information.
Just like last year, there’s good news, and there’s bad news for the organization. The National Certification Board for Therapeutic Massage & Bodywork could be the poster child for cutting expenses when revenue drops. They have done a bang-up job of tightening the belt without making services suffer….I say that because people complain to me about any of our organizations all the time, and I haven’t gotten many complaints about the service from the NCBTMB in the past year.
The bad news is that revenue has taken another million-dollar hit, almost the same as the decline last year. $800,000 of that can be mainly chalked up to the MBLEx taking away exam revenue. The good news is that in spite of that, the organization managed to get back in the black, nothing short of miraculous since they were $1.9 million in the hole just a year ago. They reported a net revenue of a little over $469,000. The Approved Provider revenue was actually up by almost $100K over last year. Their assets increased by almost $500K, and liabilities decreased by over $200K as well. I’m very happy to see them back in the positive column.
The belt-tightening that went on at the NCBTMB, to me, is also telling of their getting back on track and letting go of the battle with the FSMTB over the MBLEx. Legal expenses dived by $185,000, since they realized the futility of interfering with the states in choice of examinations.
Marketing was scaled back to the tune of over $260K, another sign of improvement to me…instead of wasting money on an agressive anti-MBLEx campaign, their advertising efforts in the past year have focused on their own positives, and that’s a good thing.
Salaries and compensation went down over $300,000. CEO Paul Lindamood’s compensation was $228K, down slightly from last year. I’d have to say he deserves it for his pivotal role in cutting expenses and focusing on the good points of the NCBTMB instead of continuing down the path of destruction that led to legal and financial woes for the organization. The Board and volunteers are also to be commended. There were 8 less employees reported in 2010 than there were in 2009, and 10 less volunteers.
Bottom line: I applaud the NCBTMB for turning it around. Even though revenue on the whole was down, I will almost take bets that as I get through this series, I’ll find that the same has happened at some of our other organizations. The recession has affected organizations just like it has affected massage schools and individual practitioners. Kudos to the NCBTMB for adapting to the situation.