Draft Minutes of the 2012 Soaring Society of America
Winter Board of Directors Meeting
February 3rd & 4th, 2012
Reno, Nevada

1.0
Called to Order at 9:00am

Attending. Chair Al Tyler, Vice Chair Dianne Black-Nixon, Vice Chair Ken Sorenson, Vice Chair Frank Whiteley, Director Gerry Molidor, Director Jay McDaniel, Director Howard Banks, Director Phil Umphres, Director Tim Hanke, Director John Lubon, Director Steve Northcraft, Director Peter Smith, Director Jim Garrison, Director Cindy Brickner, Director Burt Compton, Honorary Vice Chair Bernald Smith, Honorary Vice Chair Sterling Starr and Chief Administrative Officer Denise Layton.
Absent, 1st Vice Chair David Pixton with apologies for being unable to attend.
1.1
Welcome and remarks from SSA Chairman Al Tyler

Welcome To Reno Convention comments.

1.2
Introduction of guests

Chair Tyler welcomed Soaring Safety Foundation Chair Rich Carlson.

0918am John Godfrey, Secretary, SSA Foundation
0925am Misti LeBreton, SSA Accounting Manager
0932am Bill Daniels, Chair, SSA Growth and Development Committee

1.3
Request for confirmation of accuracy of email addresses and other contact information for the current list of Officers and Directors

2.0 (Parenthetical items available on the SSA web site)
Consent Agenda -- Action Item

[The Consent Agenda is to be considered as a “block” of items submitted to the board for approval or disapproval as a group.A simple majority is required to pass Consent Agenda. Prior to the vote any Director may request that a specific item be removed from the Consent Agenda, in which case that item will be considered separately during the Board meeting. The purpose of the Consent Agenda is to deal with as many non-contentious items as possible in an expeditious manner, thus allowing more time for discussion and decision making on policy issues that require more deliberation.]

2.1
Approval of Past Minutes
(September 29, 2011ExComm conference call)
(October 21, 2011 Board of Directors' Meeting)
(December 8, 2011 ExComm conference call)

Director Molidor moved to accept the consent agenda, Director Brickner seconded, carried unanimously.

3.0
Chairman's Report (report from Chairman Al Tyler)

Chair Tyler made additional comments regarding the Let’s Go Gliding promotion announced at the convention and meetings with others about this and the World Gliding Championships.

4.0
Chief Administrative Officer's Report(report from Denise Layton)

No numbers yet on convention attendance. We have a good turnout so far, and two planes have been sold and perhaps a third. Director Umphres watched news interview (Neita Montague) on local TV News. CAO Layton commented that live coverage expected today (Friday). Laurie Hardin and Fred LaSor coordinated publicity. Honorary Director Bernald Smith complimented CAO Layton on the staff support over the past year.

5.0
Treasurer's Report (2011 Forecast) (2012 draft Budget) (Treasurer's report) (November 2011 Balance Sheet) (November 2011 Income Statement)
Deferred until Accounting Manager LeBreton returns, 0942am,

Chair Tyler explained since work precluded Director Pixton’s attendance, Accounting Manager LeBreton will give the treasurer’s report.
End of year budget for 2011 is a negative, mostly due to Philadelphia. We’ve nearly made up most of that. We had a bad debt write-off, which we’ve never done before. That was a four year accumulation of just under $12,000. Some of that was not actually money and included some software issues and errors. Director Umphres asked who didn’t pay us. AM LeBreton said two accounts went out of business with advertising debts just under $12,000. Director Umphres asked if we had policy to prevent future events. AM LeBreton replied we do now have a monthly report and she works with Mechelle Radcliff and Cheri Long, on merchandise and magazine advertising and now have 30/60/90 day policies; 30 day letter sent, 60 days cash only, and 90 days collection calls. Director Umphres asked that it becomes part of the accounting manual. AM LeBreton confirms if will be part of the accounting manual.
Chair Tyler comments that 2011 saw a 361 member loss. He also noted that SSA Editor Coyne and change of [printer] and mailing saved $56,000. Forecast is to break even in 2012.
Accounting software replacement is being looked into by AM LeBreton, important to do this in 2012. Director Brickner asked if others recall last time we had a dues increase, 6 years at least according to Director Umphres. Director Brickner commented that we resist, we use Eagle Fund streams, the members love us, but it’s a business decision. CAO Layton commented that when the board approved the dues increase, it was pre-approved to be done in stages eventually up to $75.00. The first increase was from $55.00 to $64.00, it caused so much trouble and member loss, the other two steps were never taken by Sanderson and Wright. I have a notebook of the comments, ugly letters, notes from Sanderson and Wright and why we never implemented it. Director Brickner suggests we had a different flavor of management and leadership. Membership wouldn’t find it palatable. It’s never a good time for an increase, but we should look at our choices. Director Northcraft agrees with Director Brickner, when we propose an increase of $10, we’re told it wasn’t enough, then we don’t do anything. As I recall the real problem at the last increase was members thought we were paying Sanderson too much and didn’t want to pay the staff at all, thinking we could run the SSA from Hobbs with volunteers. A certain number of people will send you a letter. Are you going to respond to that? Director Starr commented about the Eagle Fund solicitations are successful and there’s a willingness to build up the contributions more than an increase in dues. There’s a trade-off there in what we do. It would be interesting to know what is going on with the Eagle Fund. Are we getting an increase? Is that an alternative to increasing dues at this time? Chair Tyler asked Director Northcraft about the Eagle Fund and endowments. Past discussions and research showed that in organizations of SSA size, earnings from endowments should equal or be greater than dues. Long term would try to use the Eagle Fund to grow the endowment so you wouldn’t have to raise dues and set a dues level that services the direct costs of servicing members. Director Peter Smith noted that as Eagle Fund has become more aggressive, it has made affiliate fund raising more difficult. Director Sorenson commented on AOPA dues at $45 and EAA dues are $30. Director Hanke mentioned he is asked about this. Can we PDF the magazine or find a way to leverage classifieds, no one advertises a glider in Soaring. Director Lubon mentioned that Hang Gliding magazine is $75, sticker shock if raising the dues too much but maybe small moves without causing a problem. Director Bernald Smith commented that in a 501(c)(3) donations are deductible, dues are not. Director Brickner bringing the dues issue will arise again, not asking for action, need to have the discussion in committee, was are asking for approval of this 2012 budget without changing this particular income stream. It gives the Budget Committee freedom to have this discussion. Director Molidor shared that, declining membership is the real problem and feels energy at the board by increasing the membership. Director Banks suggests this is a terrible time to think of raising prices on anything. We have an aging membership, hoping for involving youth. Some are aging out with no interest in the magazine any longer, others for economic reasons. Director Banks suggests that increasing the dues will increase the rate of decline. Chair Tyler will refer the issue to finance committee, Director Pixton and Accounting Manager LeBreton for consideration.

5.1
Action item: Approval by Board of Proposed Budget
Director Brickner moved to approve the proposed budget. Director Black-Nixon seconded. Motion carried unanimously.

6.0
Committee Reports

6.1
Chairman Al Tyler (Foundation, Growth)
Foundation meeting yesterday, happy to report after six years the foundation finally has Directors and Officers Liability Insurance.

6.1.1
SSA Foundation
Chair Tyler as if SSAF Secretary John Godfrey is prepared to report. Secretary Godfrey comments the SSAF Chair Penn Smith sends his apologies about not being able to attend. Meeting of the membership and trustees was held yesterday. The SSAF trustees and officers remain as before; Chair Penn Smith, Vice Chair John Lubon, Treasurer Peter Brown, and Secretary John Godfrey. We proposed a title for Trustee Phil Umphres, but that was rejected. Effective January 5th, Directors and officers liability insurance is in place in the amount of $3,000,000. You may recall from the Kitty Hawk meeting that there was an additional $175,000 to be transferred to the endowment from the $1,000,000 gift and that was done in November. Last two items are the treasurer’s report that on the investment tracker, buckets have been created and endowments are in there. Reading from Treasurer Brown’s report, the foundation’s assets are still 60/40 equity/fixed income. Balance sheet recognizes $645,000 received in May and $175,000 in November. Not reflected is the subsequent deposit of $80,000 in January. The overall performance fell in line with benchmark forecasts. There was a slight underperformance in fixed income and a lot of reluctance to take a longer position in bonds.
Director Hanke asked how to approach estate giving with regard to the membership. Director Banks suggested that unless there’s a technical correction before Christmas, there could be a real win-win, that is, if you have an IRA and a required minimum distribution, if you give any of the required minimum distribution to charity, there is no income tax on that distribution. Director Hanke asked how to advertise that opportunity? Secretary Godfrey explained that wasn’t an agenda item yesterday. There wasn’t any formal discussion in the meeting on what should the foundation's role be to develop giving. If you go to link on university web sites you will have these 35 giving opportunities explained, including the IRA distribution. While we do have some on the web site, we can make it better. Director Sorenson suggested a page with the top ten ways. Secretary Godfrey noted that we’ll be at the Eagle Fund reception tomorrow night we’ll be wearing our donor ribbons. One thing I learned from my wife when she became involved with fund raising officers was that you have to pony up to lead the way. Director Black-Nixon commented that this has been a subject of discussion for years, Sanderson would provide a list of people to contact within your region that might be willing to donate. At the time the foundation's role was on to manage the funds, not to raise funds. Many on the SSA board found solicitations distasteful. But maybe using the web site and the magazine to communicate giving opportunities is worth considering. We are getting donations. If that gets publicized, it might lead to further donations. Secretary Godfrey said discussion yesterday did mention that perhaps more donor exposure in the magazine might be useful. Director Peter Smith shared that he’d been a non-profit executive for 50 years now and yes it's distasteful, but I do it every day. Generally do better regarding endowments a major component of a wills and bequests program. People are more likely to contribute that way and give a larger amount. Perhaps put a reminder in the magazine, if you've remembered the SSA in your will, please tell us so we can thank you, and not your children. It helps put the notion in their mind also. Director Northcraft mentioned on some solicitations and membership forms it has a check box for requesting information on how to remember the organization in your will. Director Molidor recalled the discussion at the foundation meeting about the hard work done by Director Black-Nixon and Director Umphres to reverse the mistrust of the business acumen of the SSA and that it’s quite remarkable the amount that’s been done to restore confidence in the SSA, that the house is in order, so perhaps an article in Soaring. Director Starr thinks a half page article in Soaring on the IRA tax deductible situation. Director Banks advised that Congress is discussing this, so we may not know until late in the year if it will be available. Director Peter Smith advised it was valid through 2011, it has not yet been renewed. Director Umphres commented the issue of fund raising and who is responsible has been kicked around for a number of years. No one on the SSA board or the SSAF Foundation is really skilled or experienced in this. Despite the hand wringing, no one has stepped up. Secretary Godfrey requested direction on allocation of the $80,000 bequest to be placed in the endowment or the general operating fund.
Director Umphres made the motion that the entire amount of the Cliff Robertson $80,000 bequest be placed in the general endowment. Director Brickner seconded. Motion carried unanimously.
Chair Tyler called a ten minute recess at 10:15am.
Meeting resumed at 10:32am
6.1.2
Affiliates and Divisions
6.1.3
Clubs and Chapters (report from Frank Whiteley)
Director Whiteley commented that Penn Smith reported Connecticut Soaring Association has filed for a 501(c)(3) determination. The committee is also working with Marshall Soaring Club. Director Whiteley reported that members within chapters ranges between about 5950 and 6050 with the variation mainly from the chapter renewal cycles. Of the 670 total SSA youth, 450 are within chapters. Director Northcraft asked if there are any boilerplate templates regarding 501(c)(3)’s. Director Whiteley mentioned that they mainly do this on their own, but the committee recommends that organize for the core purpose of the scientific and educational study of motorless flight. Director Northcraft wanted to know if that was on the web site. Director Whiteley said we don’t have that yet, but are working in that direction. Director Whiteley mentioned Director Hanke’s chapter as an example of the process. Director Hanke commented that their documentation had been provided to the committee but that there is variance among states. Director Whiteley agreed, but that the IRS filing is very similar. Director Northcraft asked about availability. Director Whiteley commented that he’d discussed this with Doug Easton. By default, zip files are not allowed to be uploaded and the cases are quite large. Doug said to get the files to him and he’ll put them on the server.
6.1.4
Growth and Development - report from Bill Daniels
Presentation by Bill Daniels, Chair SSA Growth & Development Committee
Let’s Go Gliding PowerPoint.

We have to grow. We would need to quadruple in size to have political significance, which starts at 50,000.

FAA says we have 2500 CFI-G’s. I estimate we have 200 active CFI-G’s and about a dozen are doing 80% of the instruction. The good news is we have lots of instructors, we have to make them active.

I estimate we have 369 two-seaters in the US. Of that, roughly 200 could be considered trainers. In the last 18 months, we’ve lost 181 Blaniks, and about 105 2-33’s have dropped off the registry. In that period, we’ve added 39 tow planes. Not paying attention to their training fleet, but buying tow planes to launch their private owners.

Using these assumptions, we have a training capacity of 1200 students at any one time. About half are those are in this. So, we have capacity for growing the society of about 600 new people per year. That would only slightly improve on our losses.

Glider gene assumption, about 1 in a 1000 possess this gene. All we have to do is introduce those people and make them aware. I have hopes that graphics. I put a sticker on my car and had 3-4 parking lot contacts per week.

Mentioned Cloudstreet video project as a stalking horse. If it completes and draws viewers, the other cable channels will show interest. We have the ad exchanges, Let’s Go Gliding bumper stickers, and trailer banners. Key thing is to pull it together and that bring people to the web site. Notice the QR code on the graphics which direct the smart phone to the web site.

Would like to identify our best recruiters, possibly offer a reward, flight with JG or KS or DJ as a reward.

Where To Fly link. At that point we pass the ‘sale’ to the local club or commercial operator.

Had dinner with Reiner Rose and discussed getting the top five flights of the week filtered and a Google map overlay to demonstrate what gliders can do. Concept.

If this is tossed out to the Clubs & Chapters and they don’t respond, then we crash. Some of the web sites are great, others are hurting. Need to convince clubs that their web sites are outward facing to public, not inward facing to members. Clubs are notoriously hard to find and/or reach. My own club contact was deceased, the phone number was for a commercial operation, and the Google map was 30 miles off. The SSA has no way of correcting this, but it needs attention. Now we have a live volunteer that will take the calls. Use GPS coordinates to parking lot, not airport coordinates. Need to be willing to meet and greet visitors.