DEMA - Reviewing Their IRS 990s

[Cert1967]

DIVE EQUIPMENT & MARKETING ASSOCIATION

DEMA seems to be a hot topic - the annual trade show and what role DEMA should play in the dive industry's future marketing effort seem to have generated a number of opinions.

Against this backdrop it may be of interest to review DEMA's actual numbers - that is where does the money came from and where was it spent. So, a short script to strip the info from recent IRS From 990 filings - 2012, 2011, 2010 - and a few calculations later you have an overview of DEMA's financial profile.

DEMA's size. Its a small organization - total revenues are about $3M.

Market Research Dollars - $43,500

Where does the money come from? 2012 total revenue was 86% Trade Show and 11% Member Dues.

Where does the money go? Clearly to run the trade show - there isn't much left over after the show.

990/PART-III​

4a - Trade Show, $1,475,000
4b - Industry Surveys/Awards, $459,000
4c - Member Service and Market Research, $43,500

​

Salaries are a significant portion of total revenue, the directors compensation is listed as

990/PART- VIII, Section 1a​

11 - Thomas Ingram, $140,550
12 - Colleen Vasquez, $114,487​

From DEMA.ORG

DEMA Goals:

1. To produce an annual trade event for the industry which services the needs of its stakeholders and produces a successful financial outcome for the association.
2. To engage in marketing programs which promote the industry, create new customers, drive business into retail stores and resorts and promote diver retention.
3. To reserve funds annually to be dedicated to potential legislation which could adversely affect the industry.
4. To engage in marketing research programs which will:
   1. Define the universe of divers
   2. Determine the rate of erosion amongst existing divers
   3. Determine the number of entry level certifications which take place in the United States and Caribbean each year
   4. Provide retail audit information that is made self-liquidating through annual subscriptions.
5. To conserve and protect natural aquatic resources.

Surely a worthy list of goals. Without funding hard to accomplish the full set.

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	2009	2010	2011	2012	-2012%
Program Service	2,681,349	2,843,338	2,891,720	3,116,270	100.15%
Investment Income	4,014	2,598	1,216	1,069	0.03%
Other Revenue	1,140	777	2,950	-5,638	-0.18%
Revenue Total	2,686,503	2,846,713	2,895,886	3,111,701	100.00%
Revenue Growth Year over Year		6%	2%	7%
					%toRevTot
Salaries	457,259	465,900	483,219	534,406	17%
Other Expenses	2,455,429	2,230,161	2,208,015	2,515,614	81%
Total Expenses	2,912,688	2,696,061	2,691,234	3,050,020	98%
Total Expenses to Revenue Total	108%	95%	93%	98%
Tot Expenses to Rev Year over Year		-7%	0%	13%
Rev – Exp	-226,185	150,652	204,652	61,681	2%
Net Assets	1,029,986	1,180,548	1,385,200	1,446,881
Part X, L1-2, Cash and Equivalents	1,183,842	1,485,229	1,365,717	1,830,379
Trade Show US		2,425,809	2,473,130	2,688,035	86%
Other Income		109,719	78,425	78,177	3%
Membership Dues		307,810	340,165	350,058	11%
Program Service Revenue		2,843,338	2,891,720	3,116,270	100%
Other Salaries Wages		429,943	446,560	494,344	16%
Payroll Taxes		35,957	36,659	40,062	1%
Legal		56,416	69,641	42,761	1%
Accounting		16,000	14,489	14,937	0%
Occupancy		364,706	313,616	377,967	12%
Travel		49,771	69,023	76,248	2%
Conference, Conventions, Meeting		0	0	130,661	4%
Depreciation Amortization		1,319	5,500	6,000	0%
Insurance		0	89,149	98,533	3%
Show Setup/Decoration		0	0	135,964	4%
Misc		0	0	172,774	6%
Promotions & Award		369,129	334,204	371,708	12%
Management Fee		348,877	372,806	419,545	13%
Public Relations		184,055	109,107	0	0%
Printing/Publications		113,079	110,154	0	0%
Seminars/Clinic/Ws		115,913	0	0	0%
All Other Expenses		610,896	720,326	668,516	21%
Total Functional Exp, PartIVL25		2,696,061	2,691,234	3,050,020	98%
			-0.2%	13.3%
Comp SecA, Box D
Thomas Ingram, ExDir		130,767	140,355	140,550
Colleen Vasques, Assoc Dir/Cntrl		108,567	112,396	114,487
Voting Members		10
Part VI, L16/L14– Document Policy		NO	NO	NO
Part IV, L34 – Related Entity		Yes	Yes	Yes
Part VI, L3 – Delegate Management		Yes	Yes	Yes
Part VI, C, L20 – Custody of Books			Vasquez	Vasquez
Voting Members		Ashmore, Stephen	Ashmore, Stephen	Ashmore, Stephen
		Bush, Charlie	Borkin, Bonnie	Cline, William
		Byrem, Jim	Byrem, Jim	Collister, Jenny
		Nadler, Jeff	Daley, Scott	Daley, Scott
		Orr, Daniel	Kurn, Werner	Filppi, Bonnie
		Riscinti, Dave	Leaird, Tom	Kieran, Darcy
		Sahm, Keith	Nadler, Jeff	Kurn, Werner
		Sawyer, Ty	Sahm, Keith	Leaird, Tom
		Watson, Neal	Watson, Neal	Nadler, Jeff
		Webb, Tim	Webb, Tim	Webb, Tim
Related Tax Exempt Organization			Aquatic Alliance