We’ve seen an escalation of incorrect information regarding NATA finances.
Here are the facts:
NATA is exempt from federal income tax under section 501(c)(6), not 501(c)(3). This is an important distinction because there is a difference in how financial information is prepared, analyzed and presented.
- In 2021, NATA program and membership expenses were 67% and administrative expenses were 33% of revenue. When looking at our total program expense ratios, they were 75% and 25% respectively.
- Historically, with the exception of 2020 due to COVID 19, NATA has not operated at a deficit. We had a board-designated savings account for special projects. Because of accounting rules, these special project expenditures could result in a loss on the overall P&L, when in reality, funds were used from this special account.
- Following best practices among membership associations, NATA maintains prudent levels of financial reserves to weather unpredictable downturns— such as the effects of COVID-19.
- NATA receives an annual, third-party audit by an independent accounting firm specializing in nonprofits. The firm conducts a thorough review of NATA finances, including evaluating program spending ratios, to ensure alignment with industry best practices. Every year NATA has received an unmodified opinion, which is the highest level of assurance an auditor can provide.
- The NATA Treasurer provides a verbal financial report to members annually at convention. An annual written financial report is also included in the December issue of NATA News.
- The board of directors receives monthly financial reports from the NATA Director of Finance, and approves the annual external financial audit by an independent accounting firm.
The most important role of your elected NATA board of directors is fiduciary responsibility and oversight over membership dollars.
This is a responsibility taken very seriously and with extreme care. While we certainly appreciate the passion and desire to understand the association finances, the accuracy of this information is critical. If you would like to know more, click here to view the financial update given during the members’ meeting at NATA 2022. We also invite members to attend NATA Forward Motion, a quarterly virtual members’ meeting with President Dieringer. Join us on August 11 at 11am CT.
This is a great opportunity to get your specific questions answered. In addition, you can also contact your NATA District Director and/or email NATA at email@example.com.