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Board Approves Strategic Plan Programs, Funding Mechanism | NAIFA 21 | NAIFA
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Board Approves Strategic Plan Programs,
Funding Mechanism

As promised in my April 17 email message, I want to bring you up to speed on the latest developments on NAIFA’s strategic plan, titled "NAIFA in the 21st Century."

The plan to remake NAIFA and meet your needs in the 21st century took a significant step forward at the NAIFA Board of Trustees meeting, April 13-14. The board approved the products and services comprising NAIFA 21, along with measures to help pay for them.

The programs to be created represent major enhancements—which extensive research indicates our members desire—in the areas of education and sales training, advocacy, networking, and marketing and communication. The planning process focused on the delivery of this new and improved value.

The full report is available at the NAIFA 21 web page, www.naifa.org/naifa21.

Let me hit the highlights and tell you how NAIFA will leverage the latest technology to develop and deliver the following:

To fully implement NAIFA 21, the board has proposed changes to the NAIFA bylaws, which will be considered by NAIFA’s elected governing body, the National Council, at the 2007 NAIFA Convention and Career Conference in Washington, D.C., this September. Among the proposed changes will be the first national dues increase in five years—the board approved a dues increase of $49 (with annual inflation adjustments). Further study is being done to determine its effective date.

Other proposed amendments to the bylaws include an improved mission statement; individual membership at the local, state and national levels; and a reallocation of representation on the National Council.

Your national board and finance committee considered several options to fund the NAIFA 21 plan, including spending reserves, selling the headquarters building in Falls Church, Virginia, and creating a capital campaign. Most of these weren’t viable. Five years ago, when NAIFA faced serious financial challenges, the NAIFA board promised the National Council it would be responsible stewards of NAIFA’s finances. It instituted the reserve policy and strict fiscal discipline to put NAIFA on the strong financial footing it enjoys today. Dipping into those reserves or selling the building did not strike us as feasible given that promise.

Neither did it make sense to create a capital campaign—which would typically pay for a project that requires a one-time expense—when NAIFA’s funding needs will be ongoing. To augment the plan’s funding, NAIFA may use our reserves as collateral to borrow money. We will also determine how the current fiscal budget may be repositioned and perhaps seek grants from industry foundations.

The National Council will consider other proposals, including a requirement that all state and local associations adopt the name format "NAIFA-(location)." The board believes a consistent name across the federation will allow all associations to benefit from the planned national marketing communications initiative.

The plan is a great opportunity to bring NAIFA into the 21st century to meet your needs. We’ve done the research. We have the resources. We have the resolve. We have the talent. And we have the responsibility to make this the NAIFA we know it can be.

One final note: your comments on NAIFA 21 are appreciated and encouraged. Go to the NAIFA 21 web page at www.naifa.org/naifa21 to share your thoughts and ideas on the NAIFA blog.

John A. Davidson, FSS, LUTCF
NAIFA President

 


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