American Society of Appraisers

American Society of American Society of AppraisersAppraisers

The State of ASA…Where The State of ASA…Where We AreWe Are

Where We’re GoingWhere We’re Going

James O. Brown, ASA Governor –Region 5

May 14, 2009

Size and Size and DemographicsDemographics

MembershipMembership

3/31/093/31/09 3/31/083/31/08 3/31/073/31/07

ARMARM 3535 0.7%0.7% 3232 0.7%0.7% 30300.6%0.6%

BVBV 2,0762,076 43.2%43.2% 2,0972,097 43.6%43.6% 2,0772,07743.2%43.2%

G & JG & J 107107 2.2%2.2% 109109 2.3%2.3% 1171172.4%2.4%

MTSMTS 1,0651,065 22.2%22.2% 1,0731,073 22.3%22.3% 1,0561,05622.0%22.0%

PPPP 596596 12.4%12.4%599599 12.5%12.5%60860812.6%12.6%

RPRP 928928 19.3%19.3% 995995 20.7%20.7% 1,0671,06722.2%22.2%

TotalTotal 4,8074,807 100.0%100.0% 4,9204,920 100.0%100.0% 4,9564,956100.0%100.0%

MembershipMembership

AssociateAssociate 929929 18.9%18.9%

CandidateCandidate 820820 16.7%16.7%

AMAM 221221 4.5%4.5%

ASAASA 2,7012,701 55.0%55.0%

FASAFASA 5454 1.1%1.1%

ApplicantApplicant 184184 3.7%3.7%

TotalTotal 4,9094,909 100.0%100.0%

As of 3/31/09

Financial ConditionFinancial Condition

FYE 6/30/08 by FYE 6/30/08 by DisciplineDiscipline

TotalTotal ARMARM BVBV GJGJ MTSMTS PPPP RPRP

Revenue:Revenue:

DuesDues 2,580.12,580.1 15.615.6 1,098.01,098.0 60.360.3 552.6552.6 314.0314.0 539.6539.6

Conf.Conf. 251.6251.6 0.00.0 43.843.8 20.320.3 87.287.2 63.163.1 37.137.1

DisciplineDiscipline 2,837.62,837.6 0.70.7 1,910.31,910.3 10.310.3 500.7500.7 231.0231.0 154.6154.6

OtherOther 331.3331.3 2.12.1 139.3139.3 7.07.0 74.874.8 36.436.4 71.771.7

Tot. Rev.Tot. Rev. 6,000.76,000.7 18.418.4 3,221.53,221.5 97.797.7 1,215.31,215.3 644.5644.5 803.0803.0

Tot. Exp.Tot. Exp. 5,696.25,696.2 63.763.7 2,596.32,596.3 221.6221.6 1,132.21,132.2 821.0821.0 861.4861.4

NetNet 304.5304.5 (45.3)(45.3) 625.2625.2 (123.7)(123.7) 83.283.2 (176.5)(176.5) (58.4)(58.4)

Balance SheetBalance SheetJune 30, 2008June 30, 2008

Total Assets $3,408,823

Total Liabilities $2,115,704

Net Assets $1,293,119

Cash and Equivalents $1,759,466

GovernanceGovernance


Notable decisions last 5-years

Reorganize along discipline linesAlliance with AI and ASFMRA

Discipline-CentricDiscipline-Centric

Board of Governors:

2 From each discipline = 10

5 Region

Pres, SVP, Sec/Treas./Past Pres. = 4

Total = 19

Parliamentarian

Legal counsel


Recent transfer of advancement process to ASA HQ

California Coalition of California Coalition of AppraisersAppraisers

Don Risner – Lobbyist

By law, he cannot represent a group with less than 10 members

Combined lobbying opinion of ASA, ASFMRA and maybe, NAIFA

California Coalition of California Coalition of AppraisersAppraisers

Don Risner – Lobbyist

Need to establish a “committee” to provide a common opinion to Don

Don must contract separately with each organization

Status of ChaptersStatus of Chapters


Chapter/Branch Task ForceChapter/Branch Task Force

Report to Board of Governors

August 1, 2008

MembersMembers

Jim Brown, ASA - Jim Brown, ASA - Business Valuation, San Jose, CABusiness Valuation, San Jose, CA

Hatsy Cutshall, CPA - Hatsy Cutshall, CPA - ASA Chief Finance & Operations Officer, ASA Chief Finance & Operations Officer, ASA, HQASA, HQ

Bruce Kerr, ASA - Bruce Kerr, ASA - Machinery & Technical Specialties, Portland, Machinery & Technical Specialties, Portland, OROR

Edith Yeomans, ASA - Edith Yeomans, ASA - Personal Property, Toronto, ON, CanadaPersonal Property, Toronto, ON, Canada

Mark Penny, ASA - Mark Penny, ASA - Business Valuation, Haddonfield, NJBusiness Valuation, Haddonfield, NJ

Bonny Price -Bonny Price - ASA Director of Membership and ASA Director of Membership and ReaccreditationReaccreditation

Task Force PurposeTask Force Purpose

Study chapter/branch relationship Study chapter/branch relationship

Analyze status of chaptersAnalyze status of chapters

Clarify purpose and mission of chapters and Clarify purpose and mission of chapters and branchesbranches

Study chapter legal structure Study chapter legal structure

Fundamental QuestionsFundamental Questions

Purpose of ASAPurpose of ASA

What is the purpose of American Society of

Appraisers?


Examination and accreditationExamination and accreditation

Valuation educationValuation education

Valuation standards and standards Valuation standards and standards of ethical conductof ethical conduct


Legislative communication/advocacyLegislative communication/advocacy

Forum for inter-communication Forum for inter-communication between appraisersbetween appraisers

Promotion/marketing of ASA and Promotion/marketing of ASA and its membersits members

Fundamental QuestionFundamental Question

What is the purpose and mission What is the purpose and mission

of chapters?of chapters?


Is American Society of Appraisers Is American Society of Appraisers

the sum of its chapters?the sum of its chapters?


Does the success of ASA depend on Does the success of ASA depend on the success of its chapters?the success of its chapters?


Are chapters a distribution channel Are chapters a distribution channel through which ASA carries out its through which ASA carries out its

mission and purpose?mission and purpose?

Successful Organization Successful Organization RequiresRequires

Clarity and commitment to mission

ObservationObservation

The mission of ASA chapters is neither clear The mission of ASA chapters is neither clear nor possessing strong commitmentnor possessing strong commitment


ASA HQ assistance seems to be ASA HQ assistance seems to be activity oriented not content orientedactivity oriented not content oriented


Current requirements make it Current requirements make it difficult to form chapters and difficult to form chapters and

attract chapter officers.attract chapter officers.

ASA MembershipASA Membership

““All members of the Society must All members of the Society must be affiliated through a chapter.”be affiliated through a chapter.”

Bylaw VIII, Section I,DBylaw VIII, Section I,D

Chapter MeetingsChapter Meetings

““The chapter governing body shall The chapter governing body shall meet in person or by meet in person or by teleconference in all months in teleconference in all months in which the chapter does not have which the chapter does not have a meeting.”a meeting.”

Administrative Rule IV, Section 13Administrative Rule IV, Section 13

Chapter RequirementsChapter Requirements

““A group of 25 or more members, A group of 25 or more members, 10 of whom must be designated 10 of whom must be designated members, may apply to the members, may apply to the society for initiation of a chapter.”society for initiation of a chapter.”

Bylaw IV, Section 1Bylaw IV, Section 1

Branch RequirementsBranch Requirements

““A branch must be geographically A branch must be geographically distant from its chapter such that distant from its chapter such that the branch members have the branch members have difficulty getting to chapter difficulty getting to chapter meetings and/or participating in meetings and/or participating in the activities of the chapter.”the activities of the chapter.”

Administrative Rule IV, Section 17,AAdministrative Rule IV, Section 17,A

Branch Requirements Branch Requirements (Continued)(Continued)

““A branch must have at least five A branch must have at least five members, with no fewer than two members, with no fewer than two designated as ASA or AM.”designated as ASA or AM.”

Administrative Rule IV, Section Administrative Rule IV, Section 17,D17,D

Chapter Legal StructureChapter Legal Structure

Legal entity separate from ASA (the Legal entity separate from ASA (the Delaware corporation)Delaware corporation)

501(c)6 corporation501(c)6 corporation

Unincorporated associationUnincorporated association

HQ - Chapter HQ - Chapter RelationshipRelationship

ASA HQ has contract authority over ASA HQ has contract authority over a chaptera chapter

ASA HQ authority is based on historical ASA HQ authority is based on historical protocol and voluntary cooperationprotocol and voluntary cooperation

Survey ProcedureSurvey Procedure

Contacted officers or members of 44 Contacted officers or members of 44 chapters (including 5 branches), chapters (including 5 branches), representing 62% of all 71 chaptersrepresenting 62% of all 71 chapters

Interviewed by telephone to ask Interviewed by telephone to ask open-ended questions without open-ended questions without introducing our own opinionintroducing our own opinion

Chapter Purpose & Chapter Purpose & MissionMission

Survey QuestionsSurvey Questions


1.1. What is the purpose and mission What is the purpose and mission of ASA chapters?of ASA chapters?

2.2. What “yardstick” is used to measure the What “yardstick” is used to measure the effectiveness of carrying out their mission?effectiveness of carrying out their mission?

3.3. What should be in the “play book” What should be in the “play book” for chapter officers to follow?for chapter officers to follow?


4.4. If you started ASA today, what If you started ASA today, what would be the purpose and would be the purpose and mission of chapters?mission of chapters?

5.5. Would you have chapters at all?Would you have chapters at all?


Survey ResultsSurvey Results

Purpose & MissionPurpose & Mission

1.1. Education – In addition to POV Education – In addition to POV courses offered by ASA HQcourses offered by ASA HQ

2.2. Mentoring – Assistance to Mentoring – Assistance to candidates going through the candidates going through the accreditation processaccreditation process

Purpose & MissionPurpose & Mission(Continued)(Continued)

3.3. Testing – Local resources to Testing – Local resources to proctor examsproctor exams

4.4. Recruitment – Introduce Recruitment – Introduce prospective members to ASAprospective members to ASA


5.5. Public RelationsPublic Relations

6.6. Legislative Communication – Legislative Communication – Local or state (province) issues Local or state (province) issues not known to or addressed by not known to or addressed by ASA HQASA HQ


7.7. Networking – Appraiser to Networking – Appraiser to appraiserappraiser

8.8. Socializing – There seems to be Socializing – There seems to be a need to belong to a special a need to belong to a special group that is fulfilled by ASAgroup that is fulfilled by ASA


9.9. Leadership Development – Leadership Development – Chapters are a venue from Chapters are a venue from which potential ASA leadership which potential ASA leadership can make themselves knowncan make themselves known

Current “Yardstick”Current “Yardstick”

Number of meetingsNumber of meetings

Number of members Number of members

attending attending

Current “Yardstick”Current “Yardstick”

Little is said about theLittle is said about thecontent of those meetingscontent of those meetings

New “Yardstick”New “Yardstick”

Numerical ranking based on Numerical ranking based on frequency of delivering services frequency of delivering services

to members to members

Provides Services to Provides Services to MembersMembers

5. Regularly 5. Regularly

4. Irregularly 4. Irregularly

3. Sometimes3. Sometimes

2. Occasionally2. Occasionally

1. None1. None

Chapter Operating Chapter Operating StatusStatus

55

44

33

22

1 1

TotalTotal

2 2

8 8

1212

55

1717

4444

5% 5%

18% 18%

27%27%

11%11%

39%39%

100100%%

Grade Count Percent

50%


Member involvement at chapter events Member involvement at chapter events is approximately 15% to 20%. A small is approximately 15% to 20%. A small number may be higher.number may be higher.

Many chapters have difficulty Many chapters have difficulty identifying officers willing to serve.identifying officers willing to serve.

Discipline committees are not using Discipline committees are not using chapters as a distribution channel chapters as a distribution channel through which services may be provided.through which services may be provided.


Few educational subjects cross Few educational subjects cross discipline lines.discipline lines.

Chapter function attendees seem to be Chapter function attendees seem to be generally the same group over and over.generally the same group over and over.

The 80% to 85% not attending chapter activities The 80% to 85% not attending chapter activities continue to renew their membership.continue to renew their membership.

2003 Allegiance Survey2003 Allegiance Survey

Conducted by Strategic Planning Conducted by Strategic Planning Task ForceTask Force

60% of membership responded60% of membership responded

2003 Allegiance Survey2003 Allegiance Survey

Why do you belong to the American Why do you belong to the American Society of Appraisers? Society of Appraisers?

Allegiance Survey Allegiance Survey ResponsesResponses

34% - Professional Accreditation 34% - Professional Accreditation

22% - Continuing Education22% - Continuing Education

11% - Legislative advocacy, professional 11% - Legislative advocacy, professional standards, code of ethicsstandards, code of ethics

9% - Only interaction is by mail, fax or 9% - Only interaction is by mail, fax or emailemail

10% - If information is relevant or wants to 10% - If information is relevant or wants to network, often attend ASA meetingsnetwork, often attend ASA meetings

Chapter Cash Balances Chapter Cash Balances June 30, 2008 & 2007June 30, 2008 & 2007

6/30/086/30/08 6/30/076/30/07

$806,910.11 $769,964.71$806,910.11 $769,964.71

* 80 Chapters/Branches, including Hong Kong, Mexico ,Argentina and * 80 Chapters/Branches, including Hong Kong, Mexico ,Argentina and AustraliaAustralia

Chapter Cash Balances Chapter Cash Balances June 30, 2008June 30, 2008

16 $10,000 - $19,99916 $10,000 - $19,999

4 $20,000 - $29,9994 $20,000 - $29,999

2 > $30,0002 > $30,000

Chapter Cash Balances Chapter Cash Balances June 30, 2008June 30, 2008

Does this mean members’ funds Does this mean members’ funds are not being utilized for member are not being utilized for member benefit and are sitting idle?benefit and are sitting idle?

Chapter/Branch Task ForceChapter/Branch Task Force

RECOMMENDATIONSRECOMMENDATIONS

Chapter MissionChapter Mission

Develop specific, action-oriented Develop specific, action-oriented mission, consistent with the mission, consistent with the

mission of ASA, that is common mission of ASA, that is common to all chaptersto all chapters

(1) Voluntary chapter (1) Voluntary chapter membership membership

Make chapter membership voluntary instead of required. Only chapter members would pay the $25 annual chapter dues


Advantages:Fairness – Only those interested in chapter activities will pay for them

Subsidy – Those not interested no longer subsidize the rest

Idle funds – May be depleted and put to positive use to finance operations

Relevance – Would require chapter activities to be relevant to members to generate interest. Poor activities will lack both subsidy and cash balance making poor activities less likely


Disadvantages (cont.):Subsidy – No longer available to finance chapter activities

Idle funds – Likely to be spent down and no longer available to support good programs. Higher program cost per memberRelevance – Chapter officers who enjoy “running something” regardless of effectiveness will be disappointed and will be less likely to volunteer


Disadvantages (cont.):Failed chapters – May increase number of failed chapters if poor programs don’t attract needed members and funding

Jim Brown’s Observation – I submit that many more chapters have already failed. We just have not admitted it.

(2) Reduce minimum (2) Reduce minimum members to four members to four

Advantages:Encourage formation and continuation – Easier to form and continue

Disadvantages:Small group – May lack credibility with public

(3) Eliminate concept of (3) Eliminate concept of branch branch

Advantages:Improved relevance – Branches tend to result from poorly performing chapters which have been “downgraded” but continue poor performance

Disadvantages:None

(4) Eliminate processing of (4) Eliminate processing of advancement/reinstatemeadvancement/reinstateme

nt nt

Ask local senior appraisers to perform this function much like proctoring an exam

(4) Eliminate processing of (4) Eliminate processing of advancement/reinstatemeadvancement/reinstateme

nt nt Advantages:

Faster processing – Would identify volunteer senior appraiser ready to act on it immediately

Disadvantages:None

No officers – When chapter has no elected officers, Regional Governor substitutes and may prolong process

(5) Eliminate requirement (5) Eliminate requirement for monthly board for monthly board

meetings meetings

Leave frequency to discretion of chapter board or legal minimums

(5) Eliminate requirement (5) Eliminate requirement for monthly board for monthly board

meetings meetings Advantages:

Easier – Lower minimum requirement may increase population of members willing to volunteer

Disadvantages:

Less frequent communication among board members

(6) Discipline-(6) Discipline-committee-prepared committee-prepared

modular coursesmodular coursesAsk each discipline committee to develop two modular courses on current topics that can be taught by a senior appraiser at a “local” level

(6) Discipline-(6) Discipline-committee-prepared committee-prepared

modular coursesmodular coursesAdvantages:

Greater attendance – Avoids need for distant travel

Disadvantages:

Relevant – Better programs enhance stature of chapter and ASA at local level

Quality of instruction – Difficult to control instruction qualityOnline courses – May compete with online courses using “distance learning” methods

(7) Practice (7) Practice management modular management modular

coursescoursesAsk ASA HQ to prepare modular courses that can be taught by a senior appraiser at a local level on professional liability insurance, accounting/bookkeeping, engagement letters, marketing.

(7) Practice (7) Practice management modular management modular

coursescoursesAdvantages:

Greater attendance – Avoids need for distant travel

Disadvantages:

Relevant – Better programs enhance stature of chapter and ASA at local level

Quality of instruction – Difficult to control instruction quality

Online courses – May compete with online courses using “distance learning” methods

Alliances/MergerAlliances/Merger

NAIFA

RICS

CFA

CICBV


The State of ASA…Where The State of ASA…Where We AreWe Are

Where We’re GoingWhere We’re Going

James O. Brown, ASA Governor –Region 5

May 14, 2009

American Society of Appraisers

Documents

Transcript of American Society of Appraisers