Contrary to popular belief, most of the CSI Board members do have jobs that we are trying to keep while giving up many hours a month to fulfill our responsibilities to CSI. Personally, I may check in occasionally, but I also have a discussion forum on the CSI website to moderate occasionally, a task team and committee to liaise with, along with board meetings, and tend to focus energy there.
I did look in a few days ago and it appeared that Scott was doing a nice job of providing factual information and I didn’t want to get in his way. I have been posting occasionally to the LinkeIn Group. I would also suggest you check in at the CSI Business Forum on csinet.org. Dennis Hall responded to Bob’s questions there.
First, for those of you demanding financial details, the answer is no. You may not like that answer, but that’s what it is. Like every major business transaction, this one includes a nondisclosure agreement that does not allow us to disclose trade secrets or financial details.
Second, as to how much of your dues were used to conduct the transaction, the simple answer is zero. Member dues are just one source of revenue used to pay current expenses. CSI has reserves that were previously invested in the financial markets by a financial management company according to CSI’s investment policy.
Some of these assets were liquidated to invest in another asset. Reserves are accumulated retained earnings, so past years’ dues are included. However, we’ve been operating at a budgeted deficit for a number of years.
This purchased asset, if its future sales mirror its history, will provide another revenue stream to pay current expenses, thus reducing pressure to increase dues, provide funds to increase services, or both. We believe the impact to the balance sheet and net income will be positive for CSI in both the short and long terms.
The role of the CSI Board is to act in the best interest of the organization. Believe it or not, many of us had serious questions all through the process. One by one the questions, concerns, and objections were answered, addressed, and overcome.
We also had a skillful negotiating team that we trusted, along with professional consultants providing advice and counsel throughout the process. We didn’t trade the milk cow for a few beans. We made an informed decision based on the best available information and analysis.
Third, if joining a membership organization that agressively pursues its stated mission and vision is not your cup of tea, then there isn’t much I can say to persuade you otherwise. All deliberations and decisions were made in strict accordance with our articles of incorporation, bylaws, and policy.
We’re used to our leaders trying not to let anything happen on their watch and the result has been a steady decline in membership and relevance. I am proud to have been a member of a Board that took bold action. I don’t expect everyone to agree, but we have received a number of positive responses.
I hope you will appreciate the candor of my response. I would also suggest you look at President Hall’s communication earlier this week. It addressed the WHY of the transaction very well.