This is the second year that I have written a series on the financial status of the non-profit organizations associated with the massage therapy profession. I am not an accountant or a financial expert. All the information in my blogs on this subject is available for public viewing on www.guidestar.org, which is a clearinghouse of information on non-profit organizations.
There’s good news, and there’s bad news. The bad news is that like some of our other non-profit organizations, the National Certification Board for Therapeutic Massage & Bodywork has taken a substantial financial hit during the past reporting year. In this particular instance, it can’t be blamed entirely on the recession; the MBLEx has taken a big chunk of change out of the exam revenues of the NCBTMB–over one million dollars in the past year alone.
Income from the sale of the mailing list decreased by over $30,000, which may also be indicative of the financial status of other businesses and organizations who have previously purchased the list. There’s always a trickle-down effect during a recession.
The good news is that recertification revenues actually rose by over $187,000; it’s good to know that I’m not the only one who values my National Certification enough to keep it up.
I also have to applaud the NCB for the way they have cut expenses. Their belt-tightening is nothing short of impressive. When revenues go down, expenses should go down (albeit not at the expense of customer service), and apparently not all our organizations get that concept, as I have pointed out on a previous blog or two. I think the general public relates well to that…when you earn less money, you have to spend less money.
Compensation to officers, directors, trustees and key employees was decreased by $418,000. Other salaries and wages were decreased by almost $160,000. Legal fees were down by more than $321,000. Advertising and promotional fees, office expenses, conference and convention expenses, printing expenses and other expenses decreased. Altogether, the NCBTMB cut expenses more than 2.4 million dollars from the previous year.
Paul Lindamood, CEO, drew a salary of $230k. Board members are also compensated at the NCBTMB; Chair Neal Delaporta is listed as devoting an average of 17 hours per week to the NCB and was compensated $55,000 for that service. Other Board members received anywhere from $3000 to over $13,000 for their part-time service. Former COO Laura Edgar Culver received more than $128,000.
Lindamood had personally stated to me earlier this year that the organization was doing everything possible to cut expenses, and I am happy to see that has in fact been done. Assets have increased and liabilities have decreased.
When the economy goes down, charitable contributions go down. I am particularly glad to report that in spite of the harsh financial hit the NCBTMB has taken, they still managed to donate $10,000 to the Massage Therapy Foundation. I think that shows commitment to the good of this profession. They could have easily said “we can’t afford it this year,” but they didn’t. Kudos to them.
I hope the recession is winding down for everyone, all the small business owners, all those who work in our profession and support industries, and our non-profit organizations as well.
- The Financial Health of Our Organizations: FSMTB