Membership Letter
August 31, 2020
Official Notice of Call for Special General Meeting
Dear AFGA Life Members, Affiliated AFGA Clubs, and AFGA Zones,
This letter is to provide an update on the financial challenges and their implications facing the Alberta Fish and Game Association (AFGA), that were identified to Life Members and Affiliated Clubs in the July, 14, 2020 letter from me. In addition, it is also the Official Notice of the call of a Special General Meeting for October 15, 2020 to consider resolution(s) that will be required to chart a path forward. Please disseminate this information to your respective club members, as they are not included in this distribution list for this letter.
Your Executive has had to make critical decisions over the last number of months to manage the affairs of AFGA. The issues facing the AFGA are compounded by both historical management and the COVID-19 pandemic. The transition to a new management team identified not only concerns with financial oversight but also governance. The AFGA today is the result of decades of hard work by our members, clubs, zones, staff, and partners, and safekeeping our legacy is paramount!
A financial planning committee consisting of senior AFGA staff and a number of Executive has been created, and reports regularly to the Executive. Their review of past fiscal statements and budgets has identified long standing issues that affect the financial viability of the organization. The pandemic adds additional dimensions, uncertainty, and risk. Collectively the issues facing the organization include:
1. Financial statements have historically been presented in a consolidated format which did not adequately reflect costs or revenue at a component level for the organization.
2. Long standing accounting inconsistencies and errors did not identify critical revenue issues for each component of the organization.
3. Budgets did not reflect actual costs to run core programs or build contingency for unbudgeted expenditures such as litigation.
4. Programs and projects were added that were not self-funding or cost neutral.
5. Revenue to run the operations side of the organization is highly variable and unpredictable.
6. Revenue from membership affiliation fees is significantly less than what is required to fund core services.
7. The operations side of the organization has been running at a deficit for many years.
8. Organizational governance is not up-to-date, which is necessary to address the complexity and size of the organization.
9. The pandemic is uncharted ground with significant unknowns related to the impact on revenue generation either through membership sales, fundraising, grants, sponsorships, project management, and gaming proceeds (raffles and casinos).
10. The bottom line is, there is insufficient revenue to cover the cost of running the organization as currently structured, either in the immediate or long-term horizon.
11. The AFGA is not alone, as the COVID-19 pandemic has resulted in significant impacts and challenges to non-profit organizations world-wide.
The AFGA has been challenged by many obstacles in its 112-year history. Options to manage the affairs of the association have been investigated, researched, and modelled in respect to the circumstances facing the organization. After review, there are two potentially different options and outcomes.
1. Dissolution at a provincial level.
2. Restructuring of the current AFGA to support the Wildlife Trust Fund and core services and programs at a Provincial Operations level, which would also involve the revision of various governance documents.
Your Executive believes that restructuring is the desired path for many reasons. The AFGA has been an influential leader in conservation for over a century, and has advocated for programs and actions that have benefited not only anglers and hunters across the province, but also the overall public. It has provided tangible benefits and support to its clubs, and their members such as insurance, advocacy, and communications through various media sources, including the Outdoor Canada West magazine and various press releases. The greatest value is the collective commitment to deliver programs and the advocacy voice on behalf of anglers, hunters, and firearm owners.
For restructuring to be feasible there are major hurdles that must be understood and addressed. The most critical being the establishment of a sustainable and predictable funding model. Sustainable funding models are difficult for voluntary organizations to achieve, as there is always uncertainty related to membership sales and support, on an annual basis. Other sources of revenue for the association such as from fundraising, gaming proceeds, grants, and management fees related to external programs are equally unpredictable, which is complicated further in this COVID-19 era.
A restructured provincial organization would consist of two major components, Provincial Operations and the Wildlife Trust Fund. With support from Provincial Operations, the Wildlife Trust Fund has become a sustainable and self-funding program, with its own Board of Trustees. Provincial Operations is the overall organization and charitable entity. Restructuring would entail major downsizing of the current Provincial Operations to deliver core services. The management response to COVID-19 has already temporarily moved the organization in this direction.
To address restructuring, a four-phase business plan is under development. The first two phases take us to December 31, 2020 to deal with the immediate crisis. Components of this business plan have already been implemented because regardless of the final direction, whether that is dissolution or restructuring, there are common steps for each process. The third and fourth phase of the business plan under the restructuring option would allow for additional programs and services to be added, once there is capacity and stable funding in place. The goal is to see AFGA survive and emerge as a contemporary organization that is valued and irreplaceable from the standpoint of its membership, and seen by other stakeholders and governments as the voice of hunters, anglers, and firearm owners in Alberta.
Under the business plan for restructuring, the core services and responsibilities of AFGA Operations are defined as:
1. Membership, which includes membership database maintenance and ensuring member benefits are in place.
2. Zone and Club Support (Insurance is in place for gun and/or archery ranges, commercial general liability, and non-profit management and corporate liability insurance).
3. Having a corporately functioning governance structure with necessary financial controls in place, along with liability protection through appropriate insurance and protocols.
4. Advocacy and communications.
5. Ability to hold an Annual General Meeting or Special General Meeting of the Association.
6. Annual report is prepared and filed with Alberta Corporate Registry.
If restructuring is to be possible, the organization has major hurdles to overcome. The Executive needs to understand the risks and implications associated with such a decision to fulfill its fiduciary responsibilities. The provisional budget for a restructured Provincial Operations, which is still being refined, is anticipated to be approximately $650,000. This budget would include the necessary repayment of principal and interest due to borrowing. Secured borrowing is required to cover the loss from operations that have occurred over many years that was funded from other areas, in addition to the various costs associated with downsizing and restructuring. This provisional budget is significantly less than the actual cost to run the organization in the past.
To fund such a restructured organization, the key issues facing the AFGA are reduced revenues that are primarily related to fundraising difficulties, membership decline, and reduced grants in an evolving marketplace. Currently, membership revenue only covers, at best, two thirds of the cost of funding the operational side of the organization. The Executive believes that any restructuring model requires that the core services are fully funded from membership revenue.
Reduced membership, either through overall decline or loss of affiliated clubs is a major concern and risk. Regardless, the reality is that a go forward model for the AFGA is reasonable assurance from clubs that a stable funding base is possible. The Special General Meeting of the AFGA will be to discuss and vote on a proposed affiliation membership fee increase. The exact dollar figure is currently under review by refining the provisional budget, along with confirming costs associated with restructuring and borrowing. The last affiliation membership fee increase occurred in 2017. What has been discovered during fiscal reconciliation is that the actual cost of running the organization historically was not covered adequately by previous membership increases. Now the impact of the COVID-19 pandemic has compounded the issue. A fee increase for the 2021 membership year is required if the AFGA is to be restructured with the required sustainable funding model.
Holding a Special General Meeting during the COVID-19 pandemic creates logistical challenges. The exact format of the meeting is in the planning stage. At this time the general format is as follows:
1. Circulation of resolution(s) along with supporting resources by September 23, 2020 to Clubs, Zones, and Life Members.
2. Virtual (Zoom) question and answer sessions with a presentation to the Zones during the last week of September or first week of October.
3. A Special General Meeting comprised of appropriate voting delegates, based on current membership numbers, will be held on October 15, 2020, virtually using Zoom Conferencing (voting format to be determined but likely with electronic ballot or email).
The Executive and staff believe that providing this information now will allow clubs and their members to have an understanding of the decisions that need to be made if the AFGA is to survive, and serve the needs of the next generation of hunters, anglers, and firearm owners. As an organization, we require your understanding, patience and support. Your volunteer AFGA Executive, along with our staff, has spent untold hours managing the current reality and adapting to an ever-changing situation. Maintaining our legacy though programs such as the Wildlife Trust Fund is critical to the next generation of anglers and hunters in this province.
Official Notice of Call for Special General Meeting
Dear AFGA Life Members, Affiliated AFGA Clubs, and AFGA Zones,
This letter is to provide an update on the financial challenges and their implications facing the Alberta Fish and Game Association (AFGA), that were identified to Life Members and Affiliated Clubs in the July, 14, 2020 letter from me. In addition, it is also the Official Notice of the call of a Special General Meeting for October 15, 2020 to consider resolution(s) that will be required to chart a path forward. Please disseminate this information to your respective club members, as they are not included in this distribution list for this letter.
Your Executive has had to make critical decisions over the last number of months to manage the affairs of AFGA. The issues facing the AFGA are compounded by both historical management and the COVID-19 pandemic. The transition to a new management team identified not only concerns with financial oversight but also governance. The AFGA today is the result of decades of hard work by our members, clubs, zones, staff, and partners, and safekeeping our legacy is paramount!
A financial planning committee consisting of senior AFGA staff and a number of Executive has been created, and reports regularly to the Executive. Their review of past fiscal statements and budgets has identified long standing issues that affect the financial viability of the organization. The pandemic adds additional dimensions, uncertainty, and risk. Collectively the issues facing the organization include:
1. Financial statements have historically been presented in a consolidated format which did not adequately reflect costs or revenue at a component level for the organization.
2. Long standing accounting inconsistencies and errors did not identify critical revenue issues for each component of the organization.
3. Budgets did not reflect actual costs to run core programs or build contingency for unbudgeted expenditures such as litigation.
4. Programs and projects were added that were not self-funding or cost neutral.
5. Revenue to run the operations side of the organization is highly variable and unpredictable.
6. Revenue from membership affiliation fees is significantly less than what is required to fund core services.
7. The operations side of the organization has been running at a deficit for many years.
8. Organizational governance is not up-to-date, which is necessary to address the complexity and size of the organization.
9. The pandemic is uncharted ground with significant unknowns related to the impact on revenue generation either through membership sales, fundraising, grants, sponsorships, project management, and gaming proceeds (raffles and casinos).
10. The bottom line is, there is insufficient revenue to cover the cost of running the organization as currently structured, either in the immediate or long-term horizon.
11. The AFGA is not alone, as the COVID-19 pandemic has resulted in significant impacts and challenges to non-profit organizations world-wide.
The AFGA has been challenged by many obstacles in its 112-year history. Options to manage the affairs of the association have been investigated, researched, and modelled in respect to the circumstances facing the organization. After review, there are two potentially different options and outcomes.
1. Dissolution at a provincial level.
2. Restructuring of the current AFGA to support the Wildlife Trust Fund and core services and programs at a Provincial Operations level, which would also involve the revision of various governance documents.
Your Executive believes that restructuring is the desired path for many reasons. The AFGA has been an influential leader in conservation for over a century, and has advocated for programs and actions that have benefited not only anglers and hunters across the province, but also the overall public. It has provided tangible benefits and support to its clubs, and their members such as insurance, advocacy, and communications through various media sources, including the Outdoor Canada West magazine and various press releases. The greatest value is the collective commitment to deliver programs and the advocacy voice on behalf of anglers, hunters, and firearm owners.
For restructuring to be feasible there are major hurdles that must be understood and addressed. The most critical being the establishment of a sustainable and predictable funding model. Sustainable funding models are difficult for voluntary organizations to achieve, as there is always uncertainty related to membership sales and support, on an annual basis. Other sources of revenue for the association such as from fundraising, gaming proceeds, grants, and management fees related to external programs are equally unpredictable, which is complicated further in this COVID-19 era.
A restructured provincial organization would consist of two major components, Provincial Operations and the Wildlife Trust Fund. With support from Provincial Operations, the Wildlife Trust Fund has become a sustainable and self-funding program, with its own Board of Trustees. Provincial Operations is the overall organization and charitable entity. Restructuring would entail major downsizing of the current Provincial Operations to deliver core services. The management response to COVID-19 has already temporarily moved the organization in this direction.
To address restructuring, a four-phase business plan is under development. The first two phases take us to December 31, 2020 to deal with the immediate crisis. Components of this business plan have already been implemented because regardless of the final direction, whether that is dissolution or restructuring, there are common steps for each process. The third and fourth phase of the business plan under the restructuring option would allow for additional programs and services to be added, once there is capacity and stable funding in place. The goal is to see AFGA survive and emerge as a contemporary organization that is valued and irreplaceable from the standpoint of its membership, and seen by other stakeholders and governments as the voice of hunters, anglers, and firearm owners in Alberta.
Under the business plan for restructuring, the core services and responsibilities of AFGA Operations are defined as:
1. Membership, which includes membership database maintenance and ensuring member benefits are in place.
2. Zone and Club Support (Insurance is in place for gun and/or archery ranges, commercial general liability, and non-profit management and corporate liability insurance).
3. Having a corporately functioning governance structure with necessary financial controls in place, along with liability protection through appropriate insurance and protocols.
4. Advocacy and communications.
5. Ability to hold an Annual General Meeting or Special General Meeting of the Association.
6. Annual report is prepared and filed with Alberta Corporate Registry.
If restructuring is to be possible, the organization has major hurdles to overcome. The Executive needs to understand the risks and implications associated with such a decision to fulfill its fiduciary responsibilities. The provisional budget for a restructured Provincial Operations, which is still being refined, is anticipated to be approximately $650,000. This budget would include the necessary repayment of principal and interest due to borrowing. Secured borrowing is required to cover the loss from operations that have occurred over many years that was funded from other areas, in addition to the various costs associated with downsizing and restructuring. This provisional budget is significantly less than the actual cost to run the organization in the past.
To fund such a restructured organization, the key issues facing the AFGA are reduced revenues that are primarily related to fundraising difficulties, membership decline, and reduced grants in an evolving marketplace. Currently, membership revenue only covers, at best, two thirds of the cost of funding the operational side of the organization. The Executive believes that any restructuring model requires that the core services are fully funded from membership revenue.
Reduced membership, either through overall decline or loss of affiliated clubs is a major concern and risk. Regardless, the reality is that a go forward model for the AFGA is reasonable assurance from clubs that a stable funding base is possible. The Special General Meeting of the AFGA will be to discuss and vote on a proposed affiliation membership fee increase. The exact dollar figure is currently under review by refining the provisional budget, along with confirming costs associated with restructuring and borrowing. The last affiliation membership fee increase occurred in 2017. What has been discovered during fiscal reconciliation is that the actual cost of running the organization historically was not covered adequately by previous membership increases. Now the impact of the COVID-19 pandemic has compounded the issue. A fee increase for the 2021 membership year is required if the AFGA is to be restructured with the required sustainable funding model.
Holding a Special General Meeting during the COVID-19 pandemic creates logistical challenges. The exact format of the meeting is in the planning stage. At this time the general format is as follows:
1. Circulation of resolution(s) along with supporting resources by September 23, 2020 to Clubs, Zones, and Life Members.
2. Virtual (Zoom) question and answer sessions with a presentation to the Zones during the last week of September or first week of October.
3. A Special General Meeting comprised of appropriate voting delegates, based on current membership numbers, will be held on October 15, 2020, virtually using Zoom Conferencing (voting format to be determined but likely with electronic ballot or email).
The Executive and staff believe that providing this information now will allow clubs and their members to have an understanding of the decisions that need to be made if the AFGA is to survive, and serve the needs of the next generation of hunters, anglers, and firearm owners. As an organization, we require your understanding, patience and support. Your volunteer AFGA Executive, along with our staff, has spent untold hours managing the current reality and adapting to an ever-changing situation. Maintaining our legacy though programs such as the Wildlife Trust Fund is critical to the next generation of anglers and hunters in this province.
