Re: THE ACADEMY IS SUBSIDIZED BY AOPA????

Re: THE ACADEMY IS SUBSIDIZED BY AOPA????

3/15/1999

Wade,
  As a past Secretary/treasurer of ABC I can affirm the veracity of Bob
  Brown's statement about AOPA and ABC subsidizing AAOP. This was done
  quite deliberately several years ago to assist AAOP in its growth phase
  and has persisted to this day. It was never intended to last forever.
  The mechanism by which this is accomplished is to adjust in AAOP's favor
  the formula by which National Office, shared, expenses are allocated
  among the three constituent organizations (AAOP, AOPA, and ABC). This is
  commonly referred to as the allocation formula.
  From time to time the formula is adjusted. However due to inadequacies
  in the accounting system it has not been possible to do this as
  accurately as the leadership would wish. I doubt if anyone could give you
  truly satisfactory data on the matter, but I can assure you that what
  data that has been available has been interpreted in AAOP's favor, The
  organizations have transitioned to a functional accounting system, and
  after this year we will be able to allocate expenses much more accurately
  than ever before. At that point it should be possible to give a truly
  satisfactory picture of the situation.
  The situation is also affected by the fact that a number of functions
  formerly shared are going to be borne in the future solely by one
  organization or another. For instance AOPA will assume sole
  responsibility, expense, and potential profit/loss of publishing The
  Almanac. AAOP will assume a similar role with respect to JPO. This change
  will occur in Fiscal Year 2000.
  When all organizations are confronted by increased demands upon their
  resources and increased resistance to raising dues/fees, subsidization of
  one organization by another becomes problematic.

  C. Pritham

  ______________________________ Reply Separator
  _________________________________ Subject: THE ACADEMY IS SUBSIDIZED BY
  AOPA????
  Author: <Email Address Redacted> at internet Date: 3/15/99 1:47 PM


  Dear Bob,

  The impression that I get from your reply on the political impact of
  consolidation is that the academy operates out of the good grace of
  AOPA.. Is that the case??? If this is true, than my whole mindset of
  consolidation is wrong... I didn't realize that AOPA subsidized the
  ACADEMY...

  If the academy cannot be a viable operation without the charitable
  contributions from affiliated organizations than by all means we have no
  choice but to merge... If what your saying is true, the academy will
  fail without the support of AOPA. So we really do have a problem...
  either watch the academy whither and die, or merge.... I didn't realize
  this was the case...

  I somehow have a problem swallowing such a scenario... As treasurer of
  FAOP, I know what it takes to run an association, and I cant imagine that
  the academy is not financially viable.. Would it be possible for you to
  provide documentation on the amount of subsidy that has been provided to
  the academy over the years???

  I am looking foreword to see the exact figures on that...

  Thanks for your input and concern..

  Wade Bader, CPO
  Tampa, FL