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Warren Kesselman |
Recently, an EMC Society member suggested that a financial summary be included in the Newsletter to enlighten the membership on Society operational costs and let them know "what happens to their membership dues".
On an operational expense basis, the answer is that member fees only pay about 17% of your Society's yearly costs. In 1999, Society expenses (excluding symposium finances that are administered by the individual symposium's Treasurer) were approximately $368,000. The cost to produce and distribute the EMC Transactions was $122,000; Newsletter costs were $52,000; Society committee expenses totaled $169,000; and, IEEE administration costs were $25,000. Other than member fees ($64,000 in 1999), Society income is derived from the sale of its intellectual property, conference surpluses, and return on investments. In 1999, technical literature sales provided $90,000 net income. Investment income was $157,000 and surpluses from the 1997 and 1998 conferences totaled $121,000. Without investment and conference income, 1999 operations would have ended with a $57,000 deficit. The percentage distribution of 1999 income and expenses is shown in the pie charts that accompany this article.
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1999 Expenses |
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1999 Income |
Over the past several years, income from investments and symposia (currently about a million-dollar venture) has enabled your Society to "grow" a reserve fund to the level suggested by IEEE for a financially sound Society. On January 1, 2000, the market value of the EMC Society's long-term investment was $788,989.56. (As a historical note, your Society, due to a symposium deficit, had to borrow money for a few years in the 1970s to pay expenses.)
What does your $15 EMC Society membership dues buy? The combined production and distribution costs for the Transactions, Newsletter and a copy of the symposium record, if you are not an attendee, is about $60 per member. One might view the annual fee as being equivalent to a 75% membership discount on products received. If the "Transactions on EMC" non-member subscription rate ($225) is used for comparison, the "value" of an EMC Society membership is in excess of $250. EMC