Thank you for your interest in my annual reports on the financial status of the major non-profit organizations of the massage therapy profession. I am not an accountant or a financial expert. This information was taken directly from FORM 990, the Return of Organization Exempt from Income Tax, which is published on Guidestar. This filing is for NCBTMB‘s fiscal year ending12-31-2012. Non-profits are on a different tax filing schedule than the rest of us.
This has not been a banner year for the NCBTMB. Revenues are down, no big surprise since they have been steadily declining every year since the MBLEx was introduced in 2007. During 2007, the revenue of the NCB was at an all-time high of $8,655,003. During 2012, the revenue was down to $4,616,227, a decline of over 4 million dollars in the past five years. If that isn’t the handwriting on the wall that it is past time for the NCBTMB to get out of the entry-level licensing exam business, I don’t know what is. AMTA, AFMTE, and ABMP have all supported the MBLEx as the licensing exam of choice. They just refuse to give it up.
In the past year alone, since my 2011 report, the examination revenue dropped over a million dollars. Recertification income actually went up by a little over $241K, but fees from the approved providers went down by almost $50K. Sales of their study guide for the exam is down by almost $33K as well. While sales of their mailing list remained stable at just over $40K, the revenue listed as “other” went down by $20K.
Executive compensation reflected then-CEO Mike Williams’ salary of $237,500, about $20K less than Paul Lindamood received on his best year. Board members at the NCB are compensated; the Chair during this period, Alexa Zaledonis, received $33,400. I won’t complain about that. In fact, I haven’t complained about any of the BOD compensation since the day Donna Feeley (now deceased) left office…during her two years at the helm, she got more than $100,000 a year. Legal fees were higher during Feeley’s term (2207-2008) than they have ever been before or since, hitting an all-time high of over $925K during her first term. That is attributable to a number of legal actions they brought against states who chose to use the MBLEx and to lawsuits from former staff members. During 2012, over $531K was spent on legal fees–my guess is for the same reasons.
Marketing and promotion, although it has gone down, seems to be disproportionately high to me, with $356K paid to their marketing firm, The Ohlman Group, and an additional $311K + spent on promotions and advertising. A little over $341K was spent on conferences and meetings.
The major expenditure is the exam administration fee paid to Pearson Vue, which is almost $900K. Another big expenditure is their rent, which is over $178,000–or almost $15K a month. I guess I am ignorant of real estate costs in the Chicago area, but it would have been smart a long time ago for the NCBTMB to purchase a property to house their offices; it may have been paid off by now or at least be building equity.
The net assets of the NCBTMB have declined by about $93K since last year, while their liabilities have increased by over $226K. The bottom line is, the NCBTMB has gone from showing a net of over $227K in 2011 to showing a loss of almost $174K in 2012.
I don’t think their losses are over. They have spent a lot of money during 2013 in rolling out the new Board Certification, which isn’t exactly setting the world on fire. I have heard the rumor that they appealed to the other massage organizations for financial aid at the recent Coalition meeting. As recently as a year or two ago, Rick Rosen and I were both calling on the FSMTB to offer the NCBMTB a financial incentive to get out of the entry-level exam business. It didn’t happen then, and it still has not happened. I doubt if the FSMTB is in any need of the NCBTMB’s test bank, and if they’re not, they really don’t have much to gain, if anything, by paying them off. Although the number of states that accept either the MBLEx or the Entry-Level State Licensing Exam from the NCBTMB are about the same in number, the public has spoken loud and clear about which exam is the exam of choice. The MBLEx is clearly at the head of the pack.
With net assets of a little over $2.5 million, the NCBTMB is not in immediate danger of closing the doors. Neither are they anywhere near being “in the money.” Any organization needs cash reserves in order to survive–and they also need positive cash flow. If the NCB is going to survive at all, it’s just my opinion that they had better commence with the specialty certification exams and sooner rather than later. If they don’t get on the ball with that, someone may beat them to the punch. The problem is that it takes a lot of money to develop such things, and it looks like they may not have it. Time will tell.