Fiscal Year 2006-07 was the second year of our planned three-year investment in the Member Value Initiative (MVI)—CAI's strategic plan to enhance member value by (1) providing new and enhanced member benefits, (2) creating a new membership structure, (3) acquiring enhanced membership database technology and (4) implementing a new governance structure. Recognizing that major changes take investment and time to bear fruit, we planned on two years of fiscal deficits, using existing reserves to cover the shortfall, and a balanced budget for year three. To that end, the Board of Trustees approved a deficit of $214k for FY 2006-07. We ended the year $11k better than that target, with a deficit of $203k.

As we continued to build on the positive changes that the MVI provides to our members, there were notable successes during the fiscal year, including more than 1,300 participants at CAI's National Conference and Exposition in Las Vegas, new course and attendance records for the PMDP program, continued expansion of CAI's designations program, and about 4 percent growth in membership, reaching 28,513 as of June 30, 2007.

While not every program was equally successful financially, each one provided further insights into member expectations and preferences. That will help us support members as they seek continued success in a changing and challenging industry-even as we effectively manage our bottom line.

Overall, FY 2006-07 met our expectations financially and operationally. We have continued to grow CAI membership and programs, deliver value to all our membership constituencies, develop creative new resources and stay on track financially. Our potential for future growth and development continues to be strong. New communities continue to be built, existing communities continue to benefit from our information and programs and our industry continues to grow along with our collective success.

CAI operates on a fiscal year beginning July 1 and ending June 30. Review the audited financial statements for Community Associations Institute (PDF).

Our narrative Annual Report—a detailed summary of activities, challenges, accomplishments and trends for calendar year 2007—will be provided to members as part of the March/April 2008 issue of Common Ground.

Visit http://www.cairf.org/about/financials.pdf (PDF) to read the FY 2006-07 Financial Report for the Foundation for Community Association Research.

Respectfully submitted,

Thomas M. Skiba, CAE, MBA Chief Executive Officer

Stephen Albert, CPA Chief Financial Officer