The following speech was delivered at INS 2015 in Louisville, Kentucky, on May 18, 2015.
Good morning, and welcome to Louisville. It is my pleasure to stand before you this morning and report on the financial position of our organization.
Each year when we gather at this wonderful meeting we are reminded of the importance of our work and the role that infusion therapy plays in the health care system. We are also reminded that health care is not just about nurses, physicians, and medicine. Financial components affect much of what we do in health care today. The same can be said for INS as an organization. Our focus is, and always will be, on providing the educational resources that are critical to the work you do. We must accomplish this within a financial structure that is both challenging and ever changing. As you will hear this morning, INS has met the challenge from both a clinical and financial aspect. In addition, a financial report can be found with your registration materials.
I am pleased to report that INS' fiscal and calendar year of 2014 ended with an operating income of $24 510 and an increase in net assets of $198 841. This was accomplished within a challenging financial backdrop that continues to demand improved health care outcomes with dwindling resources to achieve those outcomes. Our road to this surplus took a slightly different path than previous years, but it led to financial results that enable us to continue the important work that we do. Less revenue was generated through membership and more through infusion education services and publications. The following helps to illustrate the path to our financial success in 2014.
MEMBERSHIP
Over the past 2 years we have witnessed a trend that is not likely to stop. The baby-boomer members of our organization have begun to retire; employer-sponsored memberships have been drastically reduced; nurses are constantly faced with personal financial situations that ultimately affect their decisions on professional organization memberships; and engagement, not membership, in an association has become the new reality. None of this is a surprise to us. These are trends that have been building, and we continue to develop and employ strategies to address this changing landscape. As a result of these trends and other financial components, our overall membership number has dropped by 620 since 2012. A modest increase in membership dues in 2014-which was the first increase in 17 years-helped us offset some of the financial losses incurred in this area. We were also able to dramatically decrease our membership expenses as we moved away from costly mailers and used more online tools for marketing and recruitment.
Revenue from membership is typically responsible for only 18% to 22% of overall revenues. As we take a long-range view of where the health care industry is heading, it is clear that continued growth of our organization will require that additional revenues come from different business segments-some existing and some new. Our ability to generate substantial revenues from these other sources has been, and will continue to be, a big reason for our success.
MEETINGS
INS educational meetings continue to provide a major portion of revenue for our organization. In 2014, 53% of total revenue came from this category. Both the Annual Convention and the National Academy provide educational content that is critical to the continuing education needs of infusion nurses as well as revenue streams that assist us in the work we do on your behalf. The number of attendees, exhibitors, and sponsors that participate in our meetings is testament to the importance of INS meetings and the stature they have within the infusion community. Our total meetings-related profit in 2014 was $913 000, which was about 1.5% lower than 2013.
PUBLICATIONS
Revenue in this business segment comes from our educational resources as well as the Journal of Infusion Nursing. The 2014 royalties from the Journal were the highest in INS history. These royalties come from revenues earned through subscriptions, advertising, reprints, licensing, and permissions. Total profit for Publications was $540 000.
INFUSION EDUCATION SERVICES (IES)
A majority of the revenue earned in this segment comes from the Knowledge Center, our online educational portal. The ability to reach different markets with learning opportunities in real time is integral to INS' continued growth.
Revenue is earned through sponsorship of the site, sponsored webinars, and educational programming, as well as registration fees. INS enjoyed a surplus of $113 000 in this category in 2014 compared to $65 000 in 2013. We look to this segment as one in which increased revenues will be generated as the result of the changing trends occurring in the association arena.
GENERAL AND ADMINISTRATIVE EXPENSES
INS continues to work diligently to keep a tight control over general and administrative (G&A) expenses. Some of the rising costs we all see in our personal lives, such as rent, health care, insurance, and utilities, continue to increase and are largely out of our control. Despite this, INS continues to monitor all expenditures and look for ways to keep them in line. As a result, G&A expenses increased by only 5% in 2014.
CERTIFICATION
An integral component of our mission is support of professional certification. We believe it is critical to nursing in general and to infusion nursing in particular. As a result, INS' Board of Directors approved a support grant to the Infusion Nurses Certification Corporation program in the amount of $144 000 for 2014.
In conclusion, an independent accounting firm audited INS' financial records and issued an unqualified opinion.
Thank you for your continued support of INS and the infusion nursing profession.