[AISvote] Re: Insurance


Hi Clarence, the "fantasy man".
Interesting issue here. As a new policy at the fall board meeting, it was proposed that "no communication should occur between more than  2 board members without all members being included."  Probably not the precise wording but I think the concept is in here. Going thru "AISvote" may not be right but I use it here in case I might miss someone. It's getting late.
    Dropping the insurance was discussed at great lenght  and the implications of doing so.
(1) Michele pointed out that all of the Affiliates, Regions and Sections were covered whether or not there was a request for certification. The implication was that a lawsuit against any of these groups could fall back on AIS as the parent organization. If we were "self insured" (no insurance) it could very quickly banckrupt or cripple AIS.
(2) If the affiliate organizations were to go out independantly to seek insurance, Barbara determined that it would cost Portland $750 for 2005. If 200 Affiliates did the same, it would cost the AIS Affiliates $150,000. These are round numbers but it illustrates the magnitude of the impact on  the iris world.  This impact could put a severe damper  on shows held in public places nation wide.This is not in the best interests of AIS as a promotional option.
The vote to insure or not insure was a positive yes voice vote in which there may have been some abstentions but there were no Nay votes.
The next issue was -" If we are to insure, how do we pay for it." This involved both short term and long term solutions. The long term solution was most certainly to raise dues as ALL members are beneficiaries, whether they realize it or not. (ie., those clubs needing insurance certificates are not the only beneficiaries) Since the budget last year included some $5000 +, the shortfall this year will be about $13,000. (there was a decision to cancel an umbrella policy for $5,000,000 which affected some clubs in CA, NY, etc. That was going to be an additional $9,000). I initially voiced objections to the dues increase because I felt it would be counterproductive since we typically have a membership drop of about 5% any time that happens. In hindsight, I have reason to be less pessimistic. (1) Since the annual dues billing has aready gone out, there should be no unusual dropoff for 2005.(2)  I was a bit surprised at how large a number of triennial memberships we are carrying. As a result any dropoff from that group will be spread over 3 years. Also picking up the dues increase will be slowed by 3 years - not so good. (3) New members joining this year will be coming in at the new rates. That number may be about 1000 on a typical year. At $5.00 per head, that could net us about $5,000 in 2005.
     What followed next was the observation that some of the services AIS provides actually operate at a loss. What followed was a discussion resulting in an increase in Registration fees to $10.00 from $7.50. That should gain us $1,700 during 2005.
Increase in the R & I books to $10.00 could provide a similar cushion. Advertising rates in the bulletin were also raised and that should generate several thousand more.
    With all of the various departments realizing that we are in a deficit spending position, I do believe that we have the opportunity to close that "window" in 2005. (having an authorized budget does not mean that we have to spend it)
    I remain impressed with the wisdom of the board in the decision making process. I believe they did all the right things for all of the right reasons. But then, I am an "infernal optimist"! (is that an iris name???)
There will be opportunities for fund raisers and pleas in the bulletin. Michele is looking into the impact of "deductable insurance" and we should be hearing more on that later.
Best wishes
Terry
Now, about that Dykes medal-----?

irishud@earthlink.net wrote:
Re: Just a few matters
Clarence,

Thank you for your suggestions. I agree with you completely and your other ideas are certainly worthy of consideration.

I miss seeing you at the meetings.

Jay


At 11:35 AM -0500 12/3/04, CEMahan@aol.com wrote:
In a message dated 12/2/2004 8:40:12 PM Eastern Standard Time, Terry@flowerfantasy.net writes:
The over riding issue at the fall meeting was the $18,000 cost of insurance that was not budgeted and how we were going to pay for that. It kind of squelched any other spending thoughts for the moment
Dear friends,
Not being at the fall Board meeting, I do not know all the discussion that transpired on the insurance matter---and I am sure there was much.  But with the price tag of $18,000 per annum, I would have voted to drop the insurance program at the national level.  The AIS did not have the insurance program during much of its existance, and the price now seems to me to be prohibitive unless some viable means of financing can be devised.
 
As an alternative, we might consider a scheme where those affiliates who wanted the program to continue would pay an annual amount to participate...say, $100.  I submit these thoughts only in an effort to be helpful...not to be critical of the Board's action.  I have long thought dues were too low and iris registration fee should be increased.
 
I have one more idea.  We might use the high insurance premium to promote the Silent Auction.  If people want the program and do not want afflilites to pay, then we could announce that we will need MANY donations of irises and artifacts to the SILENT AUCTION this year.  Tie the two items together, so to speak.  Just a thought.  But this would require an item in the January Bulletin to be viable, including in the president's message.
 
By the way, thank you very much for the honor of the Distinguished Service Medal. (Now if only I can convince enough judges to vote REMINISCENCE the Dykes. )   Clarence, who lives in a rich fantasy world.


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