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A Report of the Air Force Association, the AFA Veteran Benefits Association and the Air Force Memorial Foundation President/CEO

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A Report of the Air Force Association, the AFA Veteran Benefits Association and the Air Force Memorial Foundation President/CEO A Report of the Air Force Association, the AFA Veteran Benefits Association and the Air Force Memorial Foundation President/CEO With Input From Staff Executives From February 1, 2010 to August 31, 2010 EXECUTIVE SUMMARY This report covers the period from February 1, 2010 to August 31, 2010. AIR FORCE Magazine (Print, Digital, Special Projects) The AIR FORCE Magazine section of this report focuses on major leadership and budget matters. In both areas, the news is quite good. We have executed an orderly transition at the top of the Magazine as a result of the long-planned retirement of Editor in Chief Robert S. Dudney. As for finances: The Magazine, through the first eight months of the year, has performed about $111,000 better than our AFA-approved budget expected us to perform. Mitchell Institute/Mitchell Institute Press The Mitchell Institute, and its affiliate Mitchell Institute Press, has made progress in its planned, multi- year effort to increase its output of studies, expand presentations, and establish data bases of research materials. The pace of development has been and will be dictated by the level of funding and staff. Given the realities of fund-raising in a major recession, we expect to continue in a period of measured, rather than rapid, expansion. CyberPatriot AFA’s CyberPatriot, has had a busy six months. Northrop Grumman signed on in March as the "Presenting Sponsor," providing sufficient funding to begin executing full national deployment of the program – opening the competition to JROTCs from all services and also non-CAP/JROTC teams. Laine Martens was transferred from AFA Membership to CyberPatriot in early March and was joined in late June by Ken Lesley, an MIT-educated Washington, DC high school teacher, who is the CyberPatriot Director of Education and Competition. The CyberPatriot Commissioner, Bernie Skoch, a retired Air Force Brigadier General, joined the program effective 1 July 2010. A CyberPatriot Board of Advisors (CP BoA) has been formed, chaired by Dr. Paul G. Kaminski, Chairman of the Defense Science Board, and includes nine other senior executives from business and government circles. Registration has been open since May 2010, and outreach efforts to the “new” potential participants (other-Service JROTCs and non-JROTC schools) is the top priority for the team. As of 1 September 2010 43 Open Division coaches (those affiliated with non-JROTC/CAP teams) have registered for CyberPatriot III, and 274 All Service Division (any Service JROTC and CAP) teams have signed up. Registration for both divisions of competition continues until 8 October. The first online competition for the All Service Division will be held on 23 October 2010, and the first round of the Open Division will occur on 13 November 2010. The All Service in-person qualifying round will be held in conjunction with AFA’s Air Warfare Symposium in Orlando, Florida, on 18 February 2011, with finals for both divisions at our New CyberFuture Conference, 31 March – 2 April 2011. I Membership/Field Services The Membership Department provides programs and administrative support for several portions of the AFA mission. The department supports the portion of the AFA education mission that involves the AFA Field – those education programs operated by or through the chapters and states. Membership also provided administrative support for traditional Field activities that included face-to-face meetings and/or teleconferences of the Nominating Committee, Region Presidents, Membership Committee and Field Council. The Membership staff continued to work in conjunction with the AFA IT staff to create the software back end to support the changes to the field rebate and payment structure. Since May the staff has worked closely with the IT department to facilitate the change to our new database system. The Field Council and Membership committees have conducted bi-monthly teleconferences to conduct their meetings. Membership continues to be a high priority – and challenge -- for all. Neither AFA National nor the AFA Field alone can accomplish all that needs to be done. Both continue with the implementation of portions of the membership strategy approved by the Executive Committee in December 2008. We are modifying some existing programs and testing others. However, while AFA recruitment efforts by both are effective in producing new members, the number is still not sufficient to overcome losses due to non-renewals, much of which is caused by the age of our overall membership. We will continue to pursue those programs that work for us while seeking to improve our penetration of traditional markets and looking for opportunities to expand those. Our e-renewal reminders have been very successful. We have also conducted some test marketing of benefits to non-traditional groups with some encouraging results and a resulting effect on total membership. Insurance/Member Benefits The Insurance and Member Benefit programs of the Association are administered out of AFA’s Veteran Benefits Association (AFAVBA). The insurance programs continue to be financially sound and, as a result, a dividend was provided to Decreasing Term Life insureds in June. AFAVBA entered into a “Preferred Provider” agreement with USAA to endorse USAA banking and property and casualty insurance, replacing our previous AFA Banking Center and endorsement of MetLife Auto and Home insurance. New member benefits include a Senior Whole Life Insurance plan, Critical Illness Insurance, Limited Benefit Health Insurance and new discount programs on auto purchases and Microsoft software. The previous agreements for travel services and for identity theft protection services have been terminated and replaced with new program offerings that provide more substantial benefits to Members. Government Relations The past few months have been dominated by the budget cuts outlined by Secretary of Defense Robert Gates in his May 8th, 2010 speech at the Eisenhower Library. The Air Force must cut $28.3 billion in the fiscal years 12/16 program objective memorandum. This is a difficult period—clearly the nation’s fiscal condition is precarious. However, we must also ensure that we invest in critical defense capabilities that are effective across the full range of the operating spectrum. The nation needs to invest in areas that maximize efficiency and effectiveness, while minimizing the projection of vulnerability. Whether discussing shaping and deterrence, or outright combat operations, it is critical to build a force that is capable of supporting the nation’s vital interests. Not all wars of the future will look like Afghanistan and Iraq. Future investments must reflect the uncertain world in which we live. AFA plays a unique role in this dialogue, helping key individuals see past near-term political considerations and focus on the long-term strategic implications for the country. We recognize that hard choices need to be made, but we also realize that wisdom and an encompassing perspective must govern this process. On a broader level, the GRL team continues to dedicate a tremendous amount of energy to forging valuable contacts within the Pentagon, the media, and on Capitol Hill. Thorough a variety of engagement strategies, the Association continues to educate Members of Congress and staffers about the critical capabilities the Air Force affords the nation. In addition, the Air Force Association advocates and educates key audiences on issues that are important to Air Force personnel, their families, retirees, and veterans. II Programs & Industry Relations Department The PIR Department maintains a full calendar of events for the Association. In addition to the usual annual events, the Department now also operates the AFA Air Force Breakfast Series ten times during the year and presentations for the Mitchell Institute for Airpower Studies. The PIR Department continues to see growth in generating income, while constantly working to keep expenses in check. Both areas are scrutinized consistently with improvements made as needed. We are also working to update the technology used by our department to streamline our processes. Sponsorships are up and that program continues to grow for all of our programs. Our new Corporate Membership Program is off to a great start. Policy and Communications The period from February to August got off to a very productive start for AFA policy and communications with the Air Warfare Symposium in Orlando, Florida. The Department registered and supported more than 30 news outlets which attended the symposium. Additionally, complete transcripts of presentations given at the Symposium were published by the Department on AFA.org. Finance The Finance section of my report covers the results of financial operations for the year ended December 31, 2009, and an interim report covering the five month period beginning January 1 through May 31, 2010. Development The philanthropic results for January to May 2010 are going well. With guarded optimism, this proves the longevity of our mission/purpose and the loyalty of our members and friends. The importance of Airpower and the wish to protect preserve and honor its Heritage and some of the reasons. Much hard work and collaboration with and by our volunteer leaders can be cited as critical to the success. Further, expanded outreach and creative testing are crucial. In the years to come, it will be even more important that we hold to the mission, and expand the integrated marketing efforts to educate and include members, which will then lead to greater fundraising success. Several changes have been made in the operations process, namely the addition of another staff person, and the consolidation of direct mail with the Air Force Memorial. However, perhaps the most important aspect that can be attributed to the success of the increase in Annual Giving is that the overall integrated marketing efforts have really begun to pay off. As the headquarters staff continues to work in concert, overall advancement will be strengthened. Information Technology iMIS is operational and has replaced the IBM AS/400, AFA’s membership server for 18 years.
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