1999 asae THE YEAR IN REVIEW.

Evolution. Strategic direction. Leadership. These four simple words briefly summarize ASAE's accomplishments, struggles, and journey in 1999. This year will be remembered as the year of change, both subtle and profound. As ASAE looked ahead to the futures of the organization and the profession, the ever-present core values and need to address future issues allowed for an honest dialogue that led to the cultivation of new leadership and the formulation of a new strategic agenda. The incorporation of technology into virtually every facet of operation showcased the ability of ASAE to adapt, implement, and set the standard in a new medium. We saw the maturity of our advocacy efforts, and the tree of critical research bore the fruit of success and united the community.

EVOLUTION

ASAE Expands Its Presence, Outreach, and Membership

Target: 25,000 by July 1999. In his inaugural address, 1998-1999 Chairman Robert J. Dolibois, CAE, challenged ASAE to reach the 25,000-member mark. Responding to the challenge, ASAE began preparing for the milestone last August with the creation of Target: 25K, a year-long program that implemented recruitment tools such as direct mail campaigns and the annual Member-Geta-Member program. With the June 1999 admission of Lisa Malaney, director of member services and programs, American Institute of Architects, San Francisco Chapter, ASAE reached its goal.

New President, New Focus

In his first year as president and chief executive officer, Michael S. Olson, CAE, saw ASAE reach incredible milestones of membership and industry recognition, culminating with a record-setting annual meeting. To better enhance staff efficiency and member service, Olson instituted change at all levels, beginning with a staff organizational realignment.

"We have taken a look internally and expect these shifts to better assist ASAE in serving the needs of our members," said Olson. "The changes contribute to a more efficient staffing team structure and more closely align the divisions with our overall program of work, in service to the membership."

Additionally, Olson has spent a large amount of time on the road, visiting 25 allied societies across the nation and abroad. He has committed to building bridges with colleagues and fostering an environment of greater cooperation and inclusion. A testament to that is that the 1999-2000 ASAE Board of Directors has among its members both a representative from an allied society (Pamela Hemann, CAE), and the international association community (Alfons Westgeest). Under the leadership of Olson and Kirkland, ASAE will continue to develop and implement the new strategic agenda.

Here are some of the goals Olson set for the year:

* set professional and personal growth and development goals for every staff member;

* sponsor several community service outreach projects; and

* develop new and innovative professional development programs for our members in more locations.

HIGH-TECH ASSOCIATION

Associations Take a Byte Out of the Web and Technology

Going Global? Businesses must maintain an emphasis on the worldwide market in order to thrive in the new millennium, and ASAE continued to empower associations in 1999 with the outreach tools they will need to compete. ASAE launched Global Opportunities, a first-of-its-kind online resource designed to support association executives who wish to expand their international presence. Available on ASAE's Web site (www.asaenet.org/go), Global Opportunities features a wealth of resources to help members assess their organization's international potential, learn about international management issues, and explore program strategy options.

M&T Draws Record Attendance

The 1998 Management and Technology Conference, held December 12-15, 1998, succeeded in bringing the future of technology to a record number of association executives. M&T 1998 attracted 2,235 association executives, the highest number in six years and second highest total in the history of the conference. Attendees were able to tour the conference's 234 booths, at which the latest available management products, services, and technology were on display. Additional excitement was generated by event co-sponsor Microsoft, which gave away 200 copies of its latest BackOffice software, and by keynote speaker Susan O'Malley, president of Washington Sports, Washington, D.C. The 1999 M&T conference, which will be held December 5-7 at the Indiana Convention Center in Indianapolis, is hailed as the premier event for bringing together association executives and business/technology vendors.

ASAE 1999: Innovations Abound

ASAE has always been on the cutting edge of technology, and at no time in its history was this more apparent than in 1999. The association's annual meeting, ASAE San Diego 1999, provided the opportunity to showcase some of the latest and greatest developments available in conference exhibition technology. A record 6,221 attendees and exhibitors benefited from the wealth of technological innovations, which included virtual staging technology, Kiddie Cam, and the North American convention debut of Improved Definition Television (IDTV).

Interesting Stats and Trivia on ASAE's Web site

Once again, ASAE's Web site, www.asaenet.org, continued to be a main source of information for members. Take a look at these statistics:

* ASAE's Web site received approximately 12 million hits this year;

* ASAE's Web site contains approximately 10,000 total pages;

* 881 people joined ASAE during FY99 using an online application; and

* 414 people registered for ASAE San Diego 1999 online. Which pages on ASAE's Web site got the most attention? The top three pages visited in 1999 were:

1. ASAE's Gateway to Associations (www.asaenet.org/gateway/gatewayhp.html);

2. ASAE Career Headquarters www.asaent.org/careerheadquarters); and

3. ASAE's Research and Information Central (www.asaenet.org/informationcentral).

LEADERSHIP

Setting the Pace for the Profession

Throughout the year, ASAE provided cutting-edge information on the Web site, at meetings, and in ASSOCIATION MANAGEMENT, books, and newsletters. Our members have a ravenous appetite for information and we have done our level best to provide them with the tools and knowledge they need to be the very best at what they do. . . advance America.

We serve as a role model in education by taking a unique approach to delivering knowledge according to member design. ASAE has taken the banner of leadership in addressing the issues that affect our profession and let Capitol Hill hear the unified voice of associations across the land.

ASAE made great strides this year as we focused our energy on creating a brighter and more secure future for the next generation of association professionals.

ASAE TAKES ACTION

Advancing Public Policy

ASAE and the association community had many tests this year but continued to inform the government, members, the public, and the media of the value of associations. With a plan to protect association rights, Vice President for Public Policy Jim Clarke and his team scored many key points this year representing associations to the government and the nation.

In addition to continuing its major efforts to repeal or invalidate provisions of the 1993 lobby tax law that removed the tax deduction of lobbying expenditures, ASAE achieved several other successes including:

* Argued against stringent disclosure requirements on nonprofit organizations' licensing of names and logos. ASAE submitted written and oral comments in response to a preliminary report of 16 state attorneys general and the District of Columbia Corporation Counsel. This preliminary report focuses on relationships between nonprofit organizations and the for-profit entities that use association names and logos in their marketing campaigns. ASAE cautioned against casting an overly broad net in calling for strict disclosure requirements in such marketing campaigns, noting that a number of licensing arrangements between nonprofit and for-profit organizations provide associations with much-needed funds to further their publicly beneficial missions.

* Obtained a favorable resolution to the Federal Election Commission "definition of member" issue. After a long regulatory review process, the Federal Election Commission has come up with a final definition of member that is generally favorable to the association community. Only those who are association members in the eyes of the FEC may receive partisan political communication from an association and be solicited to donate to an association's political action committee.

* Spread the word regarding increased disclosure requirements for exempt organization returns, Forms 990 and 990-EZ. The law allows a request for copies of these documents to be made in writing, and requires the organization to provide a copy of its Form 990 to anyone who requests by mail or in person. If the request is made in person, a copy must be provided immediately, and, if made in writing, must be provided within 30 days. On April 8, 1999, the Internal Revenue Service issued final rules regarding new public disclosure requirements on Form 990 for tax-exempt organizations. The legislation, which mandates that all nonprofit organizations make their Form 990s available for inspection during regular business hours to any individual, also discusses how much associations can charge requesters for copies of these documents and how quickly organizations must respond.

ADVOCACY IN ACTION

The Value of Research

Through past victories and with the increasing need for more public policy efforts, ASAE increased grass-roots support through both its State Action Legislative Team (SALT) and PAC contributions. ASAE built a solid program of work backed by research and growing concern and support of constituents and colleagues. Working with respected research firm Wirthlin Worldwide, McLean, Virginia, ASAE conducted focus groups and phone interviews with House and Senate staff. These focus groups measured the staffers' attitudes toward associations and tested messages, tools, and tactics that members and chapters can apply when working with their elected officials.

Associations Advance America Committee Chair Red Cavaney, CAE, president and CEO of the American Petroleum Institute, Washington, D.C., shared AAA research findings at a special event in February 1999.

ASAE's research yields valuable insights on how associations can communicate their messages to harried Hill staffers who are besieged with dozens of letters, phone calls, and e-mails each day. For instance:

* communication must be brief, timely and relevant to the staffer's job, and delivered by well-informed constituents on the state or district level;

* they must have access to localized information on their terms; and

* the Internet is their tool of choice.

Based on the research gathered by Wirthlin Worldwide, and created for the Associations Advance America campaign, "Operation Outreach 2000," is a PowerPoint presentation designed to inspire audiences to become grass-roots advocates for the AAA cause.

A Common Enemy

On February 1, 1999, the association community was dealt a serious blow by a provision of the Clinton Budget Plan that if accepted would levy a huge tax on most forms of association nondues income and strip them of $1.4 billion. The rallying alarm was sounded, and ASAE set the wheels in motion by organizing an intense campaign that outlined the ills of the proposal and the damage it would do to more than 70,000 associations across the nation. From the Web site to faxes and weekly alerts, ASAE spread the message of the threat of the proposed tax throughout the association community. The journey to defeat the plan has taken ASAE President and CEO Michael S. Olson, CAF, to testify before the House Ways and Means Committee. ASAE achieved coverage in major newspapers and magazines around the nation, such as The Washington Post, The Wall Street Journal, and Congressional Quarterly.

MEMBERSHIP

Section Activities

The Chapter Relations Section has done extensive work in defining the body of knowledge for chapter relations professionals. This will culminate with publications on key bodies of knowledge on legal and finance issues and is slated for release in 2000. These publications will allow association executives to make informed decisions about chapter structure, bylaws, affiliation agreements, grievance proceedings, IRS exemptions, fund-raising, and more.

The Communication Section developed the Critical Competencies of Communicators document for the Web and print use. It has had remarkable participation, with more than 100 section members volunteering in section committee/task force efforts.

The Education Section produced the extremely successful Awards of Excellence in Education program this year, receiving more than 40 entries. The Education Section Council expanded the focus on certification by ensuring that it was incorporated in all the Section programs, including School of Association Management, an issue of Association Educator, and a roundtable, as well as creating a new certification category in the awards program.

The Executive Management Section has been working nonstop this year and has recorded such achievements as providing input into the newly introduced "Keeping Your Edge" column in ASSOCIATION MANAGEMENT magazine, launching their newsletter Executive IdeaLink electronically, and co-hosting a breakfast with the ASAE A-PAC/Alliance featuring The Honorable Tony Coelho, Chair of Gore 2000, as speaker.

Making the move to technology, the Finance and Administration Section's e-mail lists continue to experience incredible participation. The section's online newsletter reaches 2,275 of its 3,421 members.

The International Section took to the Web with the successful launch of ASAE Global Opportunities, an online resource to help ASAE members in their transition into the global marketplace. Located at www.asaenet.org/go, the Web site provides a wealth of information, contacts, and Internet resources.

It was a busy year for the Legal Section, including posting an Internet summary of each case discussed in 1998 and 1999 Association Law & Policy issues--44 cases spanning 37 pages. The Legal Section was pleased by the strong attendance at both the 1998 Legal Symposium in Washington, D.C., and the 1999 Chicago Legal Symposium.

The Marketing Section continued growing the ASAE membership, achieving the highest new member increase of all sections and the third highest net growth rate. Results from recent qualitative and quantitative research helped the section leadership and staff plan next steps for enhancing electronic services to reach more members, as well as other services designed to increase member access to relevant information.

The Technology Section continued to expand member resources and made significant improvements to its section newsletter, TechnoScope. Additionally, the section presented its first Creative Solutions in Technology Award.

STRATEGIC DIRECTION

Formulating an Ongoing Process

The journey of planning and thinking strategically began in August 1998, with a promise by Chairman Bob Dolibois at the close of ASAE's annual meeting in Nashville. The promise was to deliver to ASAE an ongoing strategic process that's much more than a plan. It's a whole new direction for ASAF, built on strategic thinking and dialogue about the future. To meet the changing needs of members, ASAE is changing also.

The process examined how ASAE should respond to the evolving influences of today's rapidly changing world by engaging members in honest dialogue about the future.

During this journey of exploring the environment and mapping out the association's strategic process, we listened to dozens of ASAE members from key stakeholder groups. This research and dialogue involved focus groups, telephone interviews, and e-mail list discussions, all of which provided vital feedback from members.

Emerging from the first steps of ASAE's strategic voyage are five goals:

* Professional Competency--Voluntary associations will be led by competent, educated, ethical professionals.

* Advocacy--The fundamental right of individuals and organizations to voluntarily associate to pursue common interests will be preserved and enhanced.

* Recognition and Visibility--The value and contribution of voluntary associations and of the association management professionals who lead them will be universally recognized.

* Knowledge Source--ASAE will be a worldwide leader and preferred partner in creating, expanding, refining, and transferring the body of knowledge of association management.

* Inclusive Membership--ASAE will be an inclusive and accessible organization serving and involving association professionals, members, their organizations, and related communities.

These five goals are the principles of ASAE's recently adopted strategic plan. In conjunction with the new strategic plan, a new governance model was adopted. It is designed to help the board spend the majority of its time addressing issues of strategic substance.

Diversity in the Ranks

Building upon one of the strategic plan's five goals, Inclusive Membership, the ASAE Diversity Committee held a Diversity Summit during the 1999 annual meeting. With keynote speaker Judith Ashley, human resources manager, corporate human resources, multicultural team, Intel Corporation, Chandler, Arizona, the summit's special focus groups and paneled discussion sought to discuss ways associations can build inclusiveness into their organizations and offer a forum of open dialogue on issues of diversity.

Think Globally, Act Globally

In February, the ASAE Foundation sponsored a two-day Think Tank Conference in Chicago, which brought together some of the most creative thinkers in the association community. The purpose of this conference was to develop innovations for associations based on key external trends identified in the foundation's environmental scan.

Partners for the Future Capital Campaign

The ASAE Foundation launched the Partners for the Future Capital Campaign at the annual meeting in San Diego. This campaign is a national fund-raising effort designed to significantly increase the pace and scope of research on the future of associations in America, building upon the findings of the recent environmental scan. The campaign has a minimum goal of $5.5 million, and, as of its unveiling, had already raised $4.3 million. The campaign will conclude during ASAE's 2000 annual meeting in Orlando.

                American Society of Association Executives
                         1999 Financial Statements
COMPARATIVE STATEMENTS OF
FINANCIAL POSITION
                                                 June 30,
ASSETS                                             1999            1998
Current assets
  Cash and cash equivalents                 $    (141,473)     $ 58,379
  Investments                                   9,995,130    11,339,632
  Accounts receivable                           1,374,908     1,415,835
  Inventory                                       416,403       416,562
  Prepaid expenses                                781,909       614,578
  Other current assets                             44,775        37,361
    Total current assets                       12,471,652    13,882,347
Property and equipment, at coat
  Furniture and equipment                       4,302,731     3,998,330
  Leasehold improvements                        2,992,166     2,964,923
                                                7,294,897     6,963,253
  Less accumulated depreciation                (5,889,134)   (5,374,736)
    Total property and equipment                1,405,763     1,588,517
Other assets
  Loans to and investment in affiliates           377,856       131,833
  Investment in limited partnership             1,578,044     1,745,031
  Other investments                             1,776,808       140,210
    Total other assets                          3,732,708     2,017,074
Total assets                                 $ 17,610,123  $ 17,487,938
LIABILITIES AND NET ASSETS
Current liabilities
  Accounts payable and accrued expenses       $ 1,883,078   $ 2,283,177
  Deferred revenue                              5,701,040     5,472,895
    Total current liabilities                   7,584,118     7,756,072
  Other liabilities                             1,776,808     1,884,131
    Total liabilities                           9,306,926     9,640,203
Net assets
  Unrestricted
    Undesignated                                7,241,265     7,016,150
    Designated                                    401,165            --
    Total unrestricted net assets               7,642,430     7,016,150
  Temporarily restricted                          606,767       831,585
    Total net assets                            8,249,197     7,847,735
Total liabilities and net assets             $ 17,610,123  $ 17,487,938
COMPARATIVE STATEMENTS OF ACTIVITIES
CHANGE IN UNRESTRICTED NET ASSETS
Undesignated revenue
  Administrative                                $ 918,700     $ 825,606
  Member services                               5,635,715     5,621,863
  Education and meetings                        5,892,605     5,690,087
  Publications                                  6,154,337     5,365,023
  Royalties                                     1,081,295     1,080,761
  Other programs                                  274,819       115,369
  Investment                                      830,531       797,904
                                               20,788,502    19,496,613
Net assets released from restrictions -
  satisfaction of Alliance restrictions           952,475       592,274
                                               21,740,977    20,088,887
Undesignated eupense
  Administrative                                6,455,700     5,526,091
  Member services                               4,227,401     4,382,377
  Education and meetings                        4,137,038     4,150,922
  Publications                                  4,865,599     4,557,064
  Other programs                                   81,332        91,705
  Alliance                                        952,475       592,274
                                               20,719,545    19,300,433
Change in undesignated net assets               1,021,432       788,454
before other items
  Equity in subsidiaries                          291,993     (322,610)
  Unrealized gain on investment                    43,128       417,562
  Income taxes                                   (350,078)     (387,000)
  Restructuring costs                            (245,780)           --
  Presidential search/transition                  (35,580)      (53,246)
  Transfer to Technology Fund                    (500,000)           --
  Change in undesignated net assets               225,115       443,160
Designated Technology Fund
  Transfer from undesignated                      500,000
  Expenses                                        (98,835)      (42,000)
  Change in unrestricted net assets               626,280       401,160
CHANGE IN TEMPORARILY RESTRICTED
NET ASSETS
  Contributions                                   678,119       650,066
  Investment income                                49,538        51,743
  Net assets released from restriction           (952,475)     (592,274)
Change in temporarily restricted net assets      (224,818)      109,535
  Change in net assets                            401,462       510,695
Net assets, beginning of year                   7,847,735     7,337,040
Net assets, end of year                       $ 8,249,197   $ 7,847,735

3...2...1...2000!

Associations are well-positioned to serve as the bridge between private and public sectors in helping combat the Y2K dilemma. Throughout the year, ASAE urged associations to "reach out to the business and professional community and make them aware of the potential problems posed by the Y2K bug."

ASAE assumed the role of facilitator in this initiative, working with the President's Council on Year 2000 Conversion to get the word out to trade and professional associations. Like many associations, ASAE has a Y2K Web page devoted to helping associations triumph over the millennium bug (www.asaenet.org/y2k/index/html).

Additionally, ASAE sponsored a series of events aimed at promoting Y2K collaboration among businesses, associations, and government officials in conjunction with the president and chairman of the President's Council on Year '2000 Conversion, John Koskinen.

ASAE recognized that conquering Y2K is not just a technology challenge, but a management challenge. It's all about collaboration and coordination of collaboration--something with which association professionals are intimate.

Cultivating the workforce of the future: ASAE jumpstarted its Groundhog Job Shadow Day initiative with a unique shadowing experience during ASAE San Diego 1999. The special day's activities served not only to promote the Job Shadow program to ASAE members but to share the association experience of a major meeting with students as well. This year's program was a tremendous success, matching up more than 70 San Diego-area "shadows" with association executives from across the nation. Pictured are: S. J. Kalian, left, executive director of the Consumer Attorneys of San Diego, with shadow Clare Benzan-Law, of Coronado Middle School, California, wearing yellow shirts sponsored by First Union Bank.

THE TROOPS RALLY

ASAE's grass-roots army is strong and ready to advocate. On June 15, 1999, more than 350 volunteers from 40 states, including State Action Legislative Team members, charged Capitol Hill to voice their strong opposition to the Clinton tax proposal. They had a simple message: "America's associations serve the people--don't tax that away."

To maintain the attention of the movers and shakers on Capitol Hill, ASAE ran two full-page ads for five weeks in Roll Call, a prominent Capitol Hill newspaper.

This campaign was successful in increasing awareness of ASAE as the leader in the association community and a formidable force in defending the rights and goals of associations.

BOOKSTORE BEST-SELLERS

Here are the top five books among ASAE members this year:

1. Facing the Future: A Report on the Major Trends and Issues Affecting Associations, by the ASAE Foundation.

2. Association Executive Compensation and Benefits Study, 11th Edition, by ASAE.

3. Keeping Members: The Myths and Realities, by Arlene Farber Sirkin and Michael McDermott.

4. Professional Practices in Association Management, by John B. Cox, CAE.

5. New Conference Models for the Information Age, by Coleman Finkel.

America's associations charge against "Anti-Association Tax." A letter signed by more than 2,700 association executives nationwide was delivered to Congress on March 9, 1999, by leaders of ASAE. ASAE hand-delivered letters to each member of Congress and senator in opposition to a provision in the Clinton Administration's budget plan that seeks to tax associations for $1.4 billion over the next five years. Pictured from left: Rep. Philip English (R-PA); Laura Eugster, English's aide; ASAE President and CEO Michael S. Olson, CAE; and ASAE 1998-1999 Chairman Robert J. Dolibois, CAE. English has been instrumental in generating support for associations from the House Ways and Means Committee.

ASAE's annual meeting: ASAE San Diego 1999 brought 6,221 participants to experience "Everything Under the Sun" in August. Keynote speakers included world-renowned poetess and author Dr. Maya Angelou, pictured, and former Apollo astronauts Gene Krantz and Jim Lovell. Pop music icon Kenny Loggins closed out the festivities with an outdoor concert on San Diego's Navy Pier.

WHAT'S HOT AMONG CALLERS

On the minds of the more than 19,500 callers to Information Central this year were issues relating to human resources management and organizational structure. And while the telephone remains the primary way ASAE members contact Information Central, inquiries via e-mail have almost doubled in the past year, accounting for nearly 15 percent of requests.

Here are some of this year's most popular questions:

* How are associations adjusting their membership and dues structures to address member concerns about receiving value for their dues dollars?

* What types of employee compensation and benefits packages should the association offer to remain competitive in today's labor market?

* How are associations addressing e-commerce issues related to handling meeting registration, book purchases, advertising sales, membership recruitment, and other transactions via their Web sites?