Membership growth highlights a positive year: IABC eliminates its budget deficit two years ahead of schedule.

In 2005 IABC celebrated its 35th anniversary. During the year, IABC staff not only reflected on the association's proud history but also embarked on initiatives designed to continue our record of accomplishments.

In a membership organization, a strong, growing membership is a priority. IABC is no exception. For the first time since 2000, IABC's membership grew--7 percent, to 13,452 members. Membership grew in 2005 because more business communicators, whether they were seasoned practitioners or aspiring new professionals, recognized that IABC provides them with resources that are essential for professional success.

Also contributing to our growth were 81 companies that took advantage of our popular corporate package option.

Using member input, the IABC web site was redesigned to give it a new look and to improve navigation. The Job Centre continued to be the most heavily visited area of the web site, but many members also discovered Chair Warren Bickford's blog, The IABC Cafe. While communicators all over the world are trying to assess the value of blogs to their organizations, IABC members had the chance to see a blog in action while they kept up-to-date with communication issues and IABC happenings.

CW magazine was also redesigned to improve readability. Both CW and CW Bulletin continue to add features and diversify their content. In 2005, CW worked with local volunteers to publish its first European supplement, which debuted at EuroComm, IABC's regional conference for European members.

Small conferences in business writing, financial communication, and research and measurement helped attenders broaden and refine their professional skills. Communicators also took advantage of monthly web seminars and teleseminars.

Chapters continue to offer our members opportunities for professional development and networking in their own backyard. Headquarters staff provide resources and assistance to our volunteer leaders throughout the year, but in 2005, as in every year, the highlight was our annual Leadership Institute (LI). Last year, LI had a record attendance of 201 people from 63 chapters. Because LI is so valuable in developing and inspiring leaders, regional LIs were also held in Berlin; Cape Town, South Africa; and Melbourne, Australia.

The 2005 International Conference was another growth area for IABC, bringing together 1,364 communicators from around the world--18 percent more than in 2004--to learn from speakers and other attenders about best practices in global communication.

The conference was the setting for the 2005 Gold Quill Awards ceremony. We received 1,007 entries for the Gold Quill Awards, an 8.5 percent increase over the previous year, and honored 60 Merit and 34 Excellence winners.

IABC's accreditation program saw a remarkable 30 percent increase in applications submitted for accreditation--156--in 2005 as well.

Our publications department focused its efforts on developing nine new manuals and six new communication templates to round out IABC's Knowledge Centre offerings. It also managed the publication of two studies sponsored by the IABC Research Foundation. These studies not only added to the body of communication knowledge, they also generated press coverage for IABC in the general and business press throughout North America.

An exciting new initiative of the publishing department was a collaboration with commercial publisher Jossey-Bass to produce two new books, both scheduled for publication this year. Marketed by both IABC and Jossey-Bass, these books will be an affordable resource, giving IABC an entry into new distribution channels.

Membership growth, increased participation in the Job Centre, a rise in International Conference attendance, more Gold Quill entries and applications for accreditation all demonstrated that communicators found value in IABC programs. They also contributed to IABC's bottom line.

For many, the major headline of 2005 was the fact that IABC's year-end net of revenues over expenses was the highest it had been since FY96, and that we eliminated our deficit two years ahead of schedule.

Since IABC is a nonprofit member organization whose mission is to serve our members, some may wonder why these financial results would be considered so important. It's true that member service is the staff's No. 1 priority. It is also true that with a sound financial base, IABC will have the capacity to broaden its service offerings and remain relevant and valuable to its diverse membership.

In 2005, we celebrated our past and moved forward into a healthy future. That future includes offering timely, actionable information through our professional development programs, web site and publications. In addition, we will provide face-to-face and online networking that will help members communicate and connect.

No matter what we do, we will not lose sight of the fact that IABC's success is directly tied to the success of our members and the organizations that they serve. The success of our members is our top priority. That priority remains unchanged, regardless of which anniversary we celebrate.

IABC staff, volunteers lead our success.

This year was an outstanding one for IABC, and that simply would not have been possible without the continued commitment of the members who have taken on leadership roles across the association. From local chapters to regional boards to international committees, task forces, work groups and board members, the success of IABC is directly related to the strength of its volunteer leaders and our dedicated staff in San Francisco.

The 2005 fiscal year was the first year of operations under the new governance structure approved at the 2004 Annual General Meeting. As expected, it has been a year of transition. I want to personally thank everyone around the world who has worked so diligently to ensure that the new structures are working effectively and as envisioned. Yes, there are wrinkles that need to be ironed out, but I am confident the new regional structure will continue to evolve and add in a significant way to building and maintaining strong chapters--a critical component of the association's future success.

The creation of a dynamic strategic planning process two years ago has resulted in significant changes throughout the association. The five-year strategic plan is reviewed annually to ensure that it continues to provide clear direction to help lead the association confidently into the future while maintaining financial stability and providing maximum value and service to members. That the association was able to retire its debt two years ahead of schedule is a clear indication of the effectiveness of the process.

It has been an honor to serve.

--Warren Bickford, ABC

Chair, IABC executive board

Research Foundation continues groundbreaking work.

In 2005, the IABC Research Foundation trustees undertook a major restructuring of the process for selecting topics for research, developing requests for proposals (RFPs), and reviewing and awarding projects.

Other efforts were made to bolster our fundraising activities, with several significant donations made by chapters in Toronto, Washington, D.C., and London.

The Foundation also worked to increase cooperation with the executive board through proposed bylaw changes to align the nomination process and voting representation on the executive board. In addition, the number of trustees was increased to that allowed in the bylaws.

Last year saw the publication of Thinking Big, Staying Small, a groundbreaking report on the public relations practices of small businesses, and the inception of a survey of small business best practices in communication.

In May 2006, the biannual IABC Profile study was launched. Finally, The Business of Truth, a major program focus last year, was released at the International Conference in June.

--Paul Sanchez, ABC, APR

Chair, IABC Research Foundation

IABC President Julie Freeman, ABC, APR

International Association of Business Communications Financial
Statements

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2005 AND 2004
All amounts in US$.

ASSETS                                                2005        2004
CASH AND CASH EQUIVALENTS
(Includes restricted cash of
$441,000 in 2005
and $490,000 in 2004)                        $     830,912   1,084,255

INVESTMENTS HELD FOR OPERATIONS                    325,000
ACCOUNTS RECEIVABLE                                 52,494      70,055
INVENTORY                                           98,071      88,627
PREPAID EXPENSES AND OTHER ASSETS                  205,364      53,187
INVESTMENTS                                        349,845
FURNITURE, EQUIPMENT AND
  LEASEHOLD IMPROVEMENTS--Net                      137,119      37,679
TOTAL                                        $   1,998,805   1,333,803

LIABILITIES AND NET ASSETS
LIABILITIES:
  Accounts payable                           $     295,463     193,025
  Accrued expenses                                  91,490     102,930
  Deferred revenue                               1,495,234   1,540,225
  Total liabilities                              1,882,187   1,836,180
NET ASSETS (ACCUMULATED DEFICIT):
  Unrestricted                                      79,407   (584.438)
  Temporarily restricted                            21,211      66,061
  Permanently restricted                            16,000      16,000
  Total net assets
    (accumulated deficit)                          116,618   (502,377)
TOTAL                                        $   1,998,805   1,333,803

CONSOLIDATED STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004

CHANGES IN UNRESTRICTED NET ASSETS:                   2005        2004
  Revenue and support:
    Membership dues and fees                 $   2,527,307   2,196,768
    Conferences, seminars and awards             2,032,681   1,722,534
    Information resources
      and publications                             540,082     487,691
    Advertising, exhibit
      and list rental                               54,846      94,131
    Investment income                               40,485       7,174
    Contributions                                   53,338      90,499
    Other revenue                                  114,136      94,174
    Net assets released
        from restrictions                           49,900
      Total revenue and support                  5,412,775   4,622,971

  Expenses:
    Program expenses:
    Conferences,
      seminars and awards                        1,506,923   1,482,246
    Membership                                     459,641     336,479
    Information resources
      and publications                             970,059     749,920
    Public relations                               159,062     172,532
    Leadership and
      international development                    212,005     244,220
    Accreditation                                   51,128      45,311
    Other professional development                  11,967      12,262
        Total program expenses                   3,370,785   3,042,970
  General administration:                        1,123,516   1,139,598
    Executive board                                253,550     275,562
    Fundraising                                      1,079       1,425
    Total expenses                               4,748,930   4,459,555

INCREASE IN UNRESTRICTED NET ASSETS                663,845     163,416

CHANGES IN TEMPORARILY
RESTRICTED NET ASSETS:
  Sponsorship revenue                                5,050      49,900
  Net assets released
    from restrictions                             (49,900)

(DECREASE) INCREASE IN
TEMPORARILY RESTRICTED NET ASSETS                 (44,850)      49,900

INCREASE IN NET ASSETS                             618,995     213,316

ACCUMULATED DEFICIT--
Beginning of year                                (502,377)   (715,693)

NET ASSETS (ACCUMULATED
DEFICIT)--End of year                        $     116,618   (502,377)

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED
DECEMBER 31, 2005 AND 2004

CASH FLOWS FROM OPERATING ACTIVITIES:                 2005        2004
  Increase in net assets                           618,995      213316
  Adjustments to reconcile increase
  in net assets to net cash
  provided by operating activities:
  Depreciation and amortization                     28,601      15,061
    Unrealized gain on investment                  (8,396)
    Changes in assets and liabilities:
      Accounts receivable                           17,561     364,911
      Inventory                                    (9,444)       (850)
      Prepaid expenses
        and other assets                         (152,177)      41,417
      Accounts payable                             102,438    (20,922)
      Accrued expenses                            (11,440)      27,622
      Deferred revenue                            (44,991)    (43,221)
        Net cash provided by
          operating activities                     541,147      597334

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of equipment                         (128,041)    (41,842)
  Purchases of investments                       (666,449)
    Net cash used in investing activities        (794,490)    (41,842)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Repayments of borrowings
    under line of credit                                      (50,000)
  Principal payments on capital leases                         (2,261)
    Net cash used in
      financing activities                                    (52,261)

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS                        (253,343)     503,231

CASH AND CASH EQUIVALENTS                        1,084,255     581,024
--Beginning of year

CASH AND CASH EQUIVALENTS                    $     830,912   1,084,255
--End of year

SUPPLEMENTAL CASH FLOW                       $                     929
DISCLOSURE--Cash paid
for interest

This summary of financial information has been extracted from IABC
consolidated audited financial statements, on which an independent
public accounting firm has expressed an unqualified opinion.
To obtain copies of the complete audited financial statements,
contact IABC world headquarters.