Aiessa Moynam, the Treasurer for STC International, posted the following message to the STC President’s mailing list:

As STC Treasurer, I have been intimately involved in reviewing chapter budgets and reserves over the last couple months. It’s been an eye-opening experience, giving me insight into the programs and services that chapters feel it is important to offer their members (and other technical communicators), how they generate income, and how they spend their money … or don’t spend it.

Thanks to Richard Mateosian for raising the issue of IRS guidance on excessive reserves. As Richard put it, “a small reserve — no more than two years’ expenses — is prudent and acceptable to the IRS.”

As Cindy Currie indicated in a recent posting, chapters that are able to end 2010 with a surplus will be able to keep it to build their reserves. (The identification of chapter surplus funds that could be reallocated to the Society this year was a one-time event required to help us resolve our financial crisis; we don’t expect it to be an annual event.) Those reserves will help chapters to cover operating expenses and fund programs and services in 2011 and beyond. Going forward, chapters that are planning a big-ticket activity in the near future — for example, a conference or competitions — may plan to accumulate a larger reserve to ensure the activity is fully funded. Other chapters may build more modest reserves. All chapters should avoid building up excessive reserves, which could attract the interest of the IRS. Instead, they should plan to reinvest their surplus funds into programs and services that deliver value at the local level.

As we transition to zero-based budgeting for chapters, it’s important to understand that passthrough payments are ending. In the future, the Society will have a different funding model for chapters, and it will rely on a number of factors, including:

• Membership numbers
• Programming, as reflected in the chapter budget

Looking ahead to 2011, chapter funding will be influenced by the number of members in both 2010 and 2011. It definitely is to your chapter’s advantage to encourage members to join your chapter when they renew their STC memberships for 2010, and when new members join in the coming year.

This year, the support of the chapters literally has kept STC’s doors open. The surplus funds you’ve reallocated to the Society have been critical to our survival. But STC is still not out of the woods.

Your continued support will be crucial, and this support may take many forms: boosting membership renewals and encouraging new memberships; promoting membership in chapters and SIGs; encouraging participation in your local programs; promoting attendance at the 2010 Technical Communication Summit in Dallas; and encouraging participation in Society-level offerings that are driving new sources of revenue (like the very successful online certificate programs introduced in September).

As I said, my first few months as STC Treasurer have been eye-opening … in many ways! I’ve been inspired by your commitment, engagement, dedication, enthusiasm and passion for our Society and profession. Your hard work on behalf of STC, the chapters and the SIGs has been acknowledged and is deeply appreciated. Thank you for caring so much, and thank you for all you do.

Aiessa Moyna
Treasurer, STC International