Why did CHIMA increase fees in FY2024-2025 when there is a positive net income for the organization?

Answer:

The combined statement of financial position from Fiscal Year 2022-2023 provides a breakdown of assets for the corporation. As of February 28, 2023, the organization had a positive fund balance of $471,535. The breakdown of this amount is provided within the Accountability Report for the organization.   

Within that breakdown, CHIMA’s endowment fund represents 48% of the assets of the organization. This endowment provides a perpetual grant from investment earnings and is restricted and governed by the Organization’s Board of Directors. Audited annually, the funds are segmented on the balance sheet of the organization, ensuring that the benefits are directed back to the membership. 

“As evidenced by the amounts provided in the accountability reports, CHIMA’s annual net profits are not significant. CHIMA’s profits are required to fund its operating expenses from year to year.  As a general rule, most not-for-profit organizations maintain reserve funds in an amount equal to twelve months’ worth of operating expenses, to ensure they have the necessary funds to address any potential risks and any unforeseen circumstances.  It is simply good and responsible financial practice.” – Gowling WLG

In relation to membership fees, the following factors influence the determination of the fees: expansion of the profession’s practice, timeframe since the last adjustment, inflationary cost pressures, and the increase in legitimacy in certifications. 

When comparing other organizations’ membership fees, be sure to recognize that professional members of the association and college pay an integrated fee for their national license and association features. Not taking into consideration the full scope of value, relative to other professions, leads to an ‘apples to oranges’ comparison issue.