AOPA Dues going up again

I'm insured my plane through Travers, their quote was the cheapest, and they give AOPA members a discount that's the same as AOPAs membership fee. So AOPA was pretty much free for me.
 
paflyer said:
Then it sounds like good business management.
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Then it sounds like you know nothing about business management.

There are the main reasons for cash reserves.

First, reserves can smooth out fluctuations in revenue. In a seasonal business (think Christmas trees), cash flow can vary from hugely negative to hugely positive over a year. In most cases, businesses will finance most of this with a bank credit line but financing it themselves is a nice luxury for the few that have adequate reserves. AOPA is not a seasonal business and its 2017 revenue could be fairly accurately forecast by a fourth-grade arithmetic class. Note: The purpose of cash reserves is NOT to permit expenses to remain high during a period of declining revenue. "Good business management" cuts expenses or finds ways to increase revenue when things get tight.

NRA is often cited as an association comparable to AOPA. It's quite a bit bigger, but its revenue is similarly predictable. AOPA's ratio of reserves to revenue is 26% vs AOPA's 160%. (Figures from guidestar.org tax returns.)

Second, reserves can cover large unexpected expenses. An organization that responds to natural disasters, like the American Red Cross will maintain higher reserves in order to be able to respond quickly. The biggest potential disaster at AOPA. OTOH, is probably when someone spills red wine in N4GA and the leather interior needs to be refreshed.

The American Red Cross's ratio of reserves to revenue is 70% vs AOPA at 160%.

Third, reserves can enable organizations to exploit opportunities like strategic acquisitions. Warren Buffet/Berkshire Hathaway is the poster child for this. His cash fluctuates but is in the range of 30%-35% of revenue vs AOPA at 160%. AOPA has no need and no potential for significant acquisitions. In fact, it is impossible to "acquire" a non-profit like EAA.

Fourth, reserves may exist because of external factors. If you read the news you have seen a lot of discussion about corprate profits being "marooned" overseas because they would be taxed at 35% if they were brought home. There are no external factors that would required AOPA's cash reserves to be high.

How much is too much? Well, Apple regularly gets beat up by the financial press for holding roughly 100% of revenue in cash, even with external tax issues and the potential to need cash for acquisitions is there. Microsoft and Google aka Alphabet also get beat up for holding cash in the neighborhood of 100% of revenue. So it's hard to see that AOPA is exhibiting good management by hoarding 160% of revenue.

Coming at it another way, let's guess AOPA's membership at 300,000. (They seem to be quite shy about providing a number. I could not find one. The Pilot magazine circulation is advertised to b e 284,000.) Divide $68,000,000 by 300,000 to see that they are holding over $200/member in cash. Why? Not due to "good management," that's for sure.
 
The canned answer from their website:

"AOPA’S TAX RETURNS SAY YOU HAVE MILLIONS OF DOLLARS OF RESERVES IN THE BANK. SO WHY AREN’T YOU USING THAT?
Maintaining a healthy reserve is important for any organization, especially one like AOPA that may be called on to fight off a threat like user fees or unwarranted stops and searches with little or no warning. AOPA does use its reserve when circumstances call for it. In fact, AOPA dipped into the reserve when additional funds were needed in the fight for third class medical reform. But, by design, the reserve needs to be available for extraordinary circumstances, and that means avoiding using it on an ongoing basis for routine operations."

Currently trying to un-sign up for automatic renewal....
 
Guess the ADSB mandate and the ECI debacle, both of which stand to ramp a good chunk of the fleet, thsts not really as important as unwarrented stops. Which rarely occurred and which perhaps fall into the ACLUs wheel house a little more.
 
Joshuajayg said:
The canned answer from their website:

"AOPA’S TAX RETURNS SAY YOU HAVE MILLIONS OF DOLLARS OF RESERVES IN THE BANK. SO WHY AREN’T YOU USING THAT?
Maintaining a healthy reserve is important for any organization, especially one like AOPA that may be called on to fight off a threat like user fees or unwarranted stops and searches with little or no warning. AOPA does use its reserve when circumstances call for it. In fact, AOPA dipped into the reserve when additional funds were needed in the fight for third class medical reform. But, by design, the reserve needs to be available for extraordinary circumstances, and that means avoiding using it on an ongoing basis for routine operations."

Currently trying to un-sign up for automatic renewal....
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Change your CC number?
 
I'll go on record saying that this increase is small, the total cost is small, and AOPA does a tremendous amount for GA. The training and safety assets they provide are worth it alone. Sorry, I can't get too worked up about this.
 
George Mohr said:
I'll go on record saying that this increase is small, the total cost is small, and AOPA does a tremendous amount for GA. The training and safety assets they provide are worth it alone. Sorry, I can't get too worked up about this.
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That's what they count on. Lots of patsies who don't care that they are being ripped off and who don't care that their participation in the governance of this "membership organization" is exactly zero. There is enough of your money on hand in Frederick to provide "training and safety assets" completely free for several years. And you don't care? OK. To each his own.
 
airdale said:
That's what they count on. Lots of patsies who don't care that they are being ripped off and who don't care that their participation in the governance of this "membership organization" is exactly zero. There is enough of your money on hand in Frederick to provide "training and safety assets" completely free for several years. And you don't care? OK. To each his own.
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Nice. Insults aside, I'm pretty sure this 10 bucks isn't "ripping me off". 3rd class medical reform alone was worth a lot more than that, and AOPA was influential in that. But whatever, if the ten bucks means that much to you, feel free opt out.
 
hindsight2020 said:
I have "insurance" through them. They're just a brokerage turns out (Old Republic is my actual insurance; God I hope if the time comes to make a claim they're not some just some rotary phone on the floor of an empty office park building in Dallas LOL), but I'm sure they get their cut. I think my membership should be complimentary as an insurance customer. I have no interest in spending a fee on top of my existing retail patronage.
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Old Republic was founded in 1887. You can even buy some of their stock (ticker: ORI). They are, however, HQ'ed in Chicago, if that bothers you. ;)
 
airdale said:
That's what they count on. Lots of patsies who don't care that they are being ripped off and who don't care that their participation in the governance of this "membership organization" is exactly zero. There is enough of your money on hand in Frederick to provide "training and safety assets" completely free for several years. And you don't care? OK. To each his own.
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Ripped-off? No one's forcing you to join. But you and your ilk benefit from those of us that pay the freight.

You want to see a real rip off? Take a look at my 1040. I'm also paying the freight for a bunch of "non members".
 
rpadula said:
I was on auto-renew and cancelled over the phone in early September. They're still sending me "Yoo Hoo! You forgot to renew" emails.
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Yup they've been trying bribe me with a free hat! Woo hoo!
 
airdale said:
Then it sounds like you know nothing about business management.

There are the main reasons for cash reserves.

First, reserves can smooth out fluctuations in revenue. In a seasonal business (think Christmas trees), cash flow can vary from hugely negative to hugely positive over a year. In most cases, businesses will finance most of this with a bank credit line but financing it themselves is a nice luxury for the few that have adequate reserves. AOPA is not a seasonal business and its 2017 revenue could be fairly accurately forecast by a fourth-grade arithmetic class. Note: The purpose of cash reserves is NOT to permit expenses to remain high during a period of declining revenue. "Good business management" cuts expenses or finds ways to increase revenue when things get tight.

NRA is often cited as an association comparable to AOPA. It's quite a bit bigger, but its revenue is similarly predictable. AOPA's ratio of reserves to revenue is 26% vs AOPA's 160%. (Figures from guidestar.org tax returns.)

Second, reserves can cover large unexpected expenses. An organization that responds to natural disasters, like the American Red Cross will maintain higher reserves in order to be able to respond quickly. The biggest potential disaster at AOPA. OTOH, is probably when someone spills red wine in N4GA and the leather interior needs to be refreshed.

The American Red Cross's ratio of reserves to revenue is 70% vs AOPA at 160%.

Third, reserves can enable organizations to exploit opportunities like strategic acquisitions. Warren Buffet/Berkshire Hathaway is the poster child for this. His cash fluctuates but is in the range of 30%-35% of revenue vs AOPA at 160%. AOPA has no need and no potential for significant acquisitions. In fact, it is impossible to "acquire" a non-profit like EAA.

Fourth, reserves may exist because of external factors. If you read the news you have seen a lot of discussion about corprate profits being "marooned" overseas because they would be taxed at 35% if they were brought home. There are no external factors that would required AOPA's cash reserves to be high.

How much is too much? Well, Apple regularly gets beat up by the financial press for holding roughly 100% of revenue in cash, even with external tax issues and the potential to need cash for acquisitions is there. Microsoft and Google aka Alphabet also get beat up for holding cash in the neighborhood of 100% of revenue. So it's hard to see that AOPA is exhibiting good management by hoarding 160% of revenue.

Coming at it another way, let's guess AOPA's membership at 300,000. (They seem to be quite shy about providing a number. I could not find one. The Pilot magazine circulation is advertised to b e 284,000.) Divide $68,000,000 by 300,000 to see that they are holding over $200/member in cash. Why? Not due to "good management," that's for sure.
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How much experience do you have in managing non-profits?

BTW, a 501c(x) isn't a multi-billion public company, so the comparison is dumb.
 
George Mohr said:
Nice. Insults aside, I'm pretty sure this 10 bucks isn't "ripping me off". 3rd class medical reform alone was worth a lot more than that, and AOPA was influential in that. But whatever, if the ten bucks means that much to you, feel free opt out.
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I apologize. Nothing personal intended. Re $10 I don't like being taken advantage of regardless of the amount of money. And I have opted out, several years ago.

It's too bad, really. I think the organization probably does some good and could do more, but its management and governance stinks. I was actually optimistic when the insiders anointed Baker. He has a recent track record of running failing businesses (not necessarily his fault) and I thought that might have taught him the value of a dollar. I guess not. I guess it taught him how nice it is to be rolling in money. Understandable I suppose.

paflyer said:
How much experience do you have in managing non-profits?

BTW, a 501c(x) isn't a multi-billion public company, so the comparison is dumb.
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Actually, non-profits are my wife's hobby. She's been board chair of at least four or five 501(c)3s, is currently board chair of one and a board member of two more.

If you want more comparisons with 501(c)7s, spend an evening on guidestar looking at tax returns of organizations that seem comparable to AOPA. I did that a few years ago and found only one tiny medical specialty organization that had a proportionately similar hoard and it looked like they were planning to buy a building. If you find convincing evidence that AOPA's hoard is not out of line, please report back.
 
rpadula said:
I was on auto-renew and cancelled over the phone in early September. They're still sending me "Yoo Hoo! You forgot to renew" emails.
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Just canceled over the phone. The lady didn't try and guilt me into renewing immediately or anything, that was nice. I'm waiting for the onslaught of emails now. She asked if I planned to let my membership expire or if I would renew manually and I said I hadn't decided yet. She said, "Okay, I'll just leave everything like it is."
 
Joshuajayg said:
Just canceled over the phone. The lady didn't try and guilt me into renewing immediately or anything, that was nice. I'm waiting for the onslaught of emails now. She asked if I planned to let my membership expire or if I would renew manually and I said I hadn't decided yet. She said, "Okay, I'll just leave everything like it is."
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Haha watch 'em renew you anyway. Yeah get ready if you don't renew. I've received 3 "last chance" and "free hat" emails since I don't automatically renew. I don't allow automatic renewals personally. Send me the bill and I'll mail you a check. They don't need my personal financial info. That's my opinion and I'm sticking with it! :D
 
Not surprising. Maybe they feel the need to buy a couple more private jets?
 
airdale said:
I apologize. Nothing personal intended. Re $10 I don't like being taken advantage of regardless of the amount of money. And I have opted out, several years ago.

It's too bad, really. I think the organization probably does some good and could do more, but its management and governance stinks. I was actually optimistic when the insiders anointed Baker. He has a recent track record of running failing businesses (not necessarily his fault) and I thought that might have taught him the value of a dollar. I guess not. I guess it taught him how nice it is to be rolling in money. Understandable I suppose.

Actually, non-profits are my wife's hobby. She's been board chair of at least four or five 501(c)3s, is currently board chair of one and a board member of two more.

If you want more comparisons with 501(c)7s, spend an evening on guidestar looking at tax returns of organizations that seem comparable to AOPA. I did that a few years ago and found only one tiny medical specialty organization that had a proportionately similar hoard and it looked like they were planning to buy a building. If you find convincing evidence that AOPA's hoard is not out of line, please report back.
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I don't care about your wife's "hobby." I asked for your personal experience in governing a NPO. But feel free to enjoy the benefits without paying your "fair share."
 
Acrodustertoo said:
That depends what exactly they are using them for.
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What do you think? If I'm not mistaken if there is an AOPA jet there's only one, and I think that was sold post Fuller because of the whiners.
 
George re 3rd class medical reform,time will tell and we have been duped. what we end up getting will be worse than what we have now. look up the thread were our respected expert Dr Chen weighed in with his thoughts. I have huge respect for him and his views.
 
hotprops said:
George re 3rd class medical reform,time will tell and we have been duped. what we end up getting will be worse than what we have now. look up the thread were our respected expert Dr Chen weighed in with his thoughts. I have huge respect for him and his views.
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It's a crock/ Anything less than DL "medical" is a huge failure IMO. But the SI guys are all jumping for joy, guess I would be too it I had a problem. Supposedly there was only one congresstwit in FL on the subcommittee that wouldn't sign up for the DL. I hope he lost in November.
 
paflyer said:
What do you think? If I'm not mistaken if there is an AOPA jet there's only one, and I think that was sold post Fuller because of the whiners.
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That is odd, every time I see their plane on tracker it is just landed somewhere nice expensive resort towns in Colorado and Wyoming or down at the beach in Florida. Now we all know that they are traveling yo these nice places to help the guy in the Cessna and piper cub owners. They wouldn't be flying their families around for nice vacations on our dues money? Or would they?
 
Acrodustertoo said:
That is odd, every time I see their plane on tracker it is just landed somewhere nice expensive resort towns in Colorado and Wyoming or down at the beach in Florida. Now we all know that they are traveling yo these nice places to help the guy in the Cessna and piper cub owners. They wouldn't be flying their families around for nice vacations on our dues money? Or would they?
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Nevah!
 
I "belonged" to AOPA for 20-years. Then they told me the insurance they promote would not insure me because I was too old. I then decided I must also be too old to continue "belonging" to AOPA also.
 
Acrodustertoo said:
That is odd, every time I see their plane on tracker it is just landed somewhere nice expensive resort towns in Colorado and Wyoming or down at the beach in Florida. Now we all know that they are traveling yo these nice places to help the guy in the Cessna and piper cub owners. They wouldn't be flying their families around for nice vacations on our dues money? Or would they?
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Got a tail number? Should certain destinations be excluded? Don't you think it's more likely that they are meeting members for various events? I don't see many "family vacation" airplanes in their registry.
 
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JohnWF said:
I "belonged" to AOPA for 20-years. Then they told me the insurance they promote would not insure me because I was too old. I then decided I must also be too old to continue "belonging" to AOPA also.
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How old is too old? Many insurance companies have a limit somewhere north of 70 depending on the equipment and insured value.
 
mscard88 said:
Change your CC number?
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Believe it or not, I was going to passively exit AOPA in October. I knew the card number they had, and that card was re-issued with a new number some months back. I figured AOPA would strike out in trying to auto renew against the old card. Imagine my surprise when the dues charge appeared on the statement for my new card.

I don't understand how that was possible.
 
For the AOPA-sponsored insurance 80-years was their upper limit. 80? Not interested in insuring you. I had NO hull coverage, just liability. Now 86 and covered by another company.
 
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