ACA financials

[mattdwyerva]

Got a mailing or two asking for contributions and I started wondering what the financials looked like.   I asked Claude AI about it, so please take the info below with a large grain of salt.  If you can contradict or correct this info, that would be great.   I ran a (very different) business for 40 years, so have some understanding, but I have zero direct knowledge of the situation.

FWIW here's what Claude said

**Adventure Cycling Association: Financial Overview (FY2023 and FY2024)**

**Organization Overview**

ACA is a Missoula-based nonprofit dedicated to inspiring and supporting bicycle travel. It operates a 52,848-mile route network, runs guided tours, publishes the Adventure Cyclist magazine, and advocates for cycling infrastructure. It is the largest nonprofit cycling membership organization in North America with over 50,000 members.

**Revenue**
2023 was a strong year with $6.58M in total revenue. 2024 pulled back to approximately $6.02M, a decline of roughly $560K. The primary cause was a sharp drop in tour revenue, from $2.74M in 2023 to $1.96M in 2024, a $780K decline. That single line item accounts for more than the entire revenue reduction and suggests other revenue sources held reasonably steady. Membership dues, donations, and grants remain the other major pillars of the revenue base, though the 2024 990 does not break these out as cleanly in the data retrieved.

**Expenses and Bottom Line**

This is where the two years diverge most sharply.

| | FY2023 | FY2024 |
|---|---|---|
| Total Revenue | $6.58M | $6.02M |
| Total Expenses | $6.14M | $5.43M |
| Net Surplus / (Deficit) | +$440K | ($540K) |
| Net Assets, End of Year | $3.76M | $3.25M |

Despite cutting expenses by about $710K in 2024, the revenue decline outpaced those savings, resulting in a $540K deficit. Net assets declined accordingly from $3.76M to $3.25M, representing a meaningful draw on reserves.

---

**Salaries and Staffing**

Salaries declined from $2.75M in 2023 to $2.51M in 2024, a reduction of roughly $240K. Total employee count dropped from 134 to 97. As noted earlier, much of the workforce is seasonal tour leaders rather than headquarters FTEs, so the headcount reduction closely tracks the tour revenue decline. The true number of year-round headquarters staff is not disclosed in public filings, but the swing in headcount is primarily a tour workforce story, not a layoff of core staff.

Leadership also changed between the two years. Jennifer O'Dell was Executive Director through 2023. The 2024 990 lists Nicki Bailey as Interim Executive Director, indicating a leadership transition was underway during the year.

---

**Program Spending by Segment**

The 2024 990 provides better program-level detail than the 2023 audit, allowing a partial comparison.

| Program | FY2024 Expenses | FY2024 Revenue |
|---|---|---|
| Routes and Mapping | $1.68M | $7,537 |
| Tours | $1.52M | $1.96M |
| Magazine / Communications | $556K | not separately stated |
| Other Programs | $414K | $294K |
| **Total Program** | **$4.17M** | |

Routes and Mapping is essentially entirely mission-funded, generating almost no direct revenue. Tours show a positive direct margin of roughly $440K in 2024, but as noted previously, this does not capture the full allocated cost of staff, insurance, and overhead supporting the tour operation.

---

**Building and Facilities**

Occupancy costs remain modest at $58K in 2023 (2024 figure not separately extracted). Net assets declined by $510K between year ends, and total assets fell from $5.11M to $3.76M, reflecting both the operating deficit and likely continued capital investment. A $452K capital project was underway in 2023.

---

**Key Unknowns (Unchanged)**

*Tour true profitability.* Direct tour margin appears positive in both years, but full cost allocation including shared salaries, insurance, and overhead is not isolatable from public filings. The tour operation's true economics remain opaque.

*Headquarters FTE count.* The swing from 134 to 97 employees is largely a tour workforce phenomenon. The number of year-round HQ staff is not disclosed. An estimate of 25 to 40 FTEs remains plausible but unverified.

*Cause of tour revenue decline.* The $780K drop in tour revenue from 2023 to 2024 is the central financial story of 2024, but the filings give no explanation. It could reflect fewer tours offered, lower enrollment, pricing changes, or weather and logistics disruptions. Understanding whether this is a one-year anomaly or a trend is critical to assessing the organization's financial trajectory, and that answer awaits 2025 data.

*Leadership transition impact.* The shift to an interim executive director in 2024 may have affected operations and tour programming, but there is no way to quantify that from public documents.

---

**Overall Assessment**

2023 presented ACA as a lean, well-run organization with a comfortable surplus and diversified revenue. 2024 complicates that picture considerably. The tour revenue decline is large enough to matter structurally, since tours are both the largest revenue line and the most visible expression of the mission. The organization has a reasonable reserve cushion at $3.25M in net assets, but a second consecutive deficit year of similar magnitude would begin to create genuine financial pressure. The combination of a leadership transition and a significant revenue drop in the same year warrants watching.

[jamawani]

"Got a mailing or two asking for contributions"

So did I.

And Max said that the "Plan B" was for us to come up with the moolah.
That is not my "Plan B" - nor do I think it is the "Plan B" of many remaining members.

What I have not seen - which I believe has not taken place -
is a thorough retrospective analysis of what went wrong over the past 5 years.
Any good business or nonprofit should do this regularly -
especially one which has lost 2/3s of its members.

Instead, we get upbeat messaging - which seems to be a trend everywhere -
when an honest assessment is needed to avoid simply pouring more money down the drain.
The best source of additional revenue for a membership organization is - - - more members.
And the best place to find new members is among the 32,000 who have left.
ACA is not Sam's Club, its potential members are an extremely small segment of society.
Tossing aside 32,000 seems a poor business model indeed.

I'm waiting, without much confidence, to see a clear report addressing the past 5 years.
I do not expect to see one. Just more happy talk.
Which is likely not to serve ACA well.

PS - Did you notice the expressions of ACA staff and board members during the online meeting?
You would think that the peasants knew better ....

[mattdwyerva]

I agree with you completely.   

They need to survey past members, and survey present members.   Then they need to analyze those results critically, understand what members want, and present both the results and a plan that builds stability and growth and that reflects member wishes.  Their financials should be easy for members to drill into and understand what is happening.

If they are doing that now (it's pretty basic stuff), then I am ignorant, which is possible

[mattdwyerva]

Ok, just got a survey invite, which I think they sent earlier and I filled it out.   No questions seeking input into how to become stable or have growth.   

I need to pay attention for when there are member meetings, well, assuming those are opportunities for input and getting inside info and not just listening to someone making a sales pitch.

[BikeliciousBabe]

"And Max said that the "Plan B" was for us to come up with the moolah.
That is not my "Plan B" - nor do I think it is the "Plan B" of many remaining members."

Doesn't really sound like a plant at all.

How it intends to come up with the moolah might sound like a plan.

And I am a former, long-time member.  I have not received a survey. 

[jamawani]

BB -

That was my reaction, as well. Not my "Plan B".
It's an ultimatum - much as how the sale of the headquarters was presented.

Other than a general "Mistakes were made" apology by the board chair,
there has been no open process of assessing the errors of the past 5 years.
I believe that part of the problem is the board's insulation from the membership.
The board is, basically, self-selected, not elected by members.

When you lose 2/3s of you members and blow through 2 million in reserves,
then tell the remaining members, "Ante up!" - - -
It's just a recipe for further decline.

Long-distance bicycling tourers are a tiny slice of the population.
Rather than going after people who haven't been on a bike since they were 12,
perhaps it might be wiser to address the reasons why 32,000 known supporters have left??
But, that has not occurred.

Instead, they have used a crucial opportunity to further alienate remaining members.
In the private sector, the entire board and top leadership would resign.

[jamawani]

Ok, just got a survey invite, which I think they sent earlier and I filled it out.   No questions seeking input into how to become stable or have growth.

Matt -

Was this the one that asked questions like:
"How often do you tour?"
"Do you prefer solo or group tours?"
"Are you interested in taking an ACA tour?"

For the past five+ years we have been deluged with marketing and messaging.
I was afraid of that when Jenn O'Dell took over since her background was in marketing
and she had little to no bicycle touring experience.

I have considerable experience in survey design.
Too often, clients request what they want to hear and are unwilling to seek useful responses.
In such cases, members either choose not to respond or give them what they want.

If ACA wants to survive they have a shrinking window of opportunity that came after the 2nd vote.
Just as their rationale for selling the headquarters was prepackaged to fit their position,
ACA's explanation that members simply were "ageing out" was transparently inadequate.

Perhaps it is time for new leadership. Perhaps it is too late.
Perhaps most former members just don't care.