Document No. 23

The American Radio Relay League
2003 Annual Meeting of the Board of Directors

Committee Members: Director; Jay Bellows, K0QB, Chairman; Vice President Joel Harrison, W5ZN; Directors Walt Stinson, W0CP; Coy Day, N5OK; Bernie Fuller, N3EFN; and Dick Isely, W9GIG; Vice Director Jim Fenstermaker, K9JF (secretary); Executive Vice President Dave Sumner, K1ZZ; CFO Barry Shelley, N1VXY; Treasurer Jim McCobb, W1LLU; and President Jim Haynie, W5JBP (ex-officio).

Introduction

The Committee and Staff look forward to the full implementation of the Enterprise, DXCC and eCommerce systems next month. Over the course of the upcoming year we expect to see continual improvement in the operational efficiencies, member access and system utility as a result of our investment in information technology and organizational development. Member response to the efforts of the Development Office and the Marketing, Sales and Advertising Group continues to be encouraging. A softening in the number and amount of contributions to the Defense of Frequencies Fund and selected Publication sales in the past few months bears careful monitoring.

Despite a troubled market and the challenge of expanding our membership base the League continues to be healthy organization and our balance sheet is strong. The losses incurred continue to be less than planned when we decided to undertake this transition.

Increased competition for resources among our programs and member services require us to critically examine each of our programs and activities to ensure that they warrant the resources that they consume and the benefits they provide in light of our long term vision and current needs.

Year to Date Results

Financial results continue to running ahead of projections. Both revenues and expenses remain less than planned though the gap has decreased in the past two months. Interest and dividends on our investment portfolio are running ahead of projections. As is traditionally the case the gap between second half revenues and expenses tend to increase. For the first time in years ad revenues which have been steadily declining for several years remain near plan despite a soft advertising market.

Membership and dues remain greater than planned despite the increase in dues last year. Nevertheless, membership numbers in recent months have not been encouraging and continue to be a matter of concern.

As noted above the computer system upgrade is steadily moving toward full implementation in February. In addition to the Enterprise, DXCC and eCommerce systems, the Logbook of the World is also on track for initial implementation next month.

Challenges in 2003 and Beyond

Through careful management of resources we have been able to support and fund the broad range of programs and activities available to our members from our traditional sources such as dues, user fees and the sale of publications. The task of maintaining existing member programs and activities and adequately funding the efforts to protect Amateur frequencies and interests at the national and international level will become increasingly more difficult unless we are able to increase the proportion of Amateurs who support the League and its activities. At present less than one of four US Amateur licensees is an ARRL member. Technician Class Amateurs with VHF privileges continue to comprise the smallest percentage of ARRL members.

The competition from commercial interests hungry for an increasing share of limited frequency resources continues to escalate. Responding to these challenges requires continually increasing amounts of time, effort and resources. Though the majority of commercial challenges to Amateur frequencies are in the VHF/UHF allocations far too many Technicians still view frequency defense as someone else's responsibility and concern. Similarly, restrictions on Amateur Radio towers and antennas through local ordinances and by developers are mistakenly viewed as solely benefiting HF operators.

We need to make a convincing case that it is in the self interest of Amateurs of every license class to join in our efforts to protect Amateur frequencies and interests. If we fail it will become increasingly more difficult to adequately support our Advocacy efforts and
provide the necessary support to the programs, services and activities our members expect.

Conclusion

The uncertainty of the current economy and evolving nature of Amateur Radio require us to clearly identify and understand the strategic mission, goals and objectives of the League. Structures, programs and activities that are part of our past and tradition ought to be treasured, but treasured as part of an evolving organization. If we are to continue to evolve with Amateur Radio and meet the needs of our members we must critically examine each of our programs and activities to ensure that they warrant the resources that they consume and the benefits they provide in light of our long term vision and current needs.

Respectfully submitted,

Jay Bellows, K0QB
Chairman
January 13, 2003