Rotary Board Considering Management Firm for Administrative & Financial Support

Rotary Board Considering Management Firm for Administrative & Financial Support
by John Ackenhusen

In case you haven’t heard, our beloved Club Administrator John White has announced his plans to retire.  Acknowledging the important role of the Administrator and the fact that for our size Club to function effectively at all times, it was determined important for us to have back up for both the Club’s administrative and financial responsibilities.

Anticipating John’s retirement, the Rotary Board formed a search committee about nine months ago to identify either a successor or other options for the administrative and financial responsibilities.

Today, the search committee presented to the Board a recommendation to engage a local management consulting company that is skilled in the administration and financial services of non- profit associations.  This option was chosen from a list of five excellent candidate solutions (persons and organizations).  The recommended company would hire a lead administrator/financial support person that would be the face of the company, a full time commitment, attending our meetings and becoming known to club members.  The recommended company is very well qualified and highly regarded by references from other associations it manages and by CPAs that review its organizations.  Very important, this company would provide the desired backup capability in the event that the lead person becomes unavailable.

The cost would be approximately $24,000 higher than what we presently obtain from Club Administrator John White and Controller David Keosaian.  It’s worth noting that both John and Dave have generously provided the club with a significant amount of contributed services.  When we think about the incremental cost, it’s also important to recognize that the Club is not currently paying for an office, storage (file) space, meeting room, lap top computers and general office supplies since that too has been provided by both John and Dave.  The incremental cost would be split between our Operating Fund (non tax deductible) and Community Service (tax deductible) accounts, in line with the allocation of those costs currently.  In anticipation, we increased our dues by $30/member this year, plan a more modest increase next year, and have already been executing a plan to increase the endowment of our club’s charitable foundation.