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A membership body answers to people who can walk away every January. How much of the budget do dues have to carry? What share of dues is spent on lobbying, and who has to be told? What happens to the payroll if the spring show has a bad weekend? A blank template won't show you what a sensible answer looks like.
This article walks through a complete sample plan for a 501(c)(6) trade association in Hartford, Connecticut, from the executive summary to the five-year financials. It ends with a downside case and the steps the board takes in response.
What you get from each part:
- The member tiers: see how four dues levels, a renewal rate for each and a count of new joiners add up to the revenue line, so your own dues forecast has working behind it
- The lobbying budget: learn how an association shows what it spends on advocacy, and what the IRS expects it to tell members about dues
- The show and sponsorship calendar: find out how one March weekend shapes a year of cash, and plan reserves for the quiet months
- The staffing plan: work out which posts dues can pay for and which need event revenue behind them
- Net assets on the balance sheet: understand how an organization with no owners records its reserve, and how it differs from a company's equity
- The five-year income, cash flow and balance sheet: follow how pay raises, dues increases and new hires show up in the numbers
- The downside case: have an answer ready for a 20% revenue shortfall, together with the cuts the board makes in response
If you are setting up a trade or professional association, read this before you write your own. The association is fictional, so take what fits and change the rest.
In this plan
Looking for a nonprofit trade association business plan template? The Toolkit builds yours with your own numbers.
Summary for the Board
The Connecticut Motorsports Business Association (CMBA) is a membership association for businesses that sell and service motorcycles, personal watercraft, snowmobiles and related gear in Connecticut. It is exempt under section 501(c)(6) of the Internal Revenue Code, has an office in Hartford, and has no owners. Its income pays for a small staff, a contract lobbyist at the State Capitol and a public trade expo each March.
CMBA opens 2027 with 268 members and a relaunch: four dues tiers, a member portal, a part-time events and sponsorship coordinator in the fifth year and a written policy on how dues are used for lobbying. It starts with $200,000: a $120,000 reserve carried from earlier years and $80,000 of one-time pledges, still to be signed, from the board and about 40 member businesses. Of that, $52,000 pays for the relaunch and $148,000 stays in the bank.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $531,473 | $581,716 | $655,582 |
| Net income after relaunch costs | ($41,768) | $2,583 | $7,153 |
| Closing cash | $110,176 | $113,762 | $120,590 |
Membership grows from 268 to 294 in 2027 and to 390 by 2031. Dues are 44% of Year 1 revenue; the expo and other events are 36%, sponsorship 13% and training 6%. Year 1 loses $41,768: $30,000 is relaunch spending expensed at opening and the other $11,768 is an operating deficit while new members pay part-year dues. Year 2 is the first surplus, and surpluses stay in the reserve.
The plan also tests a 20% drop in every revenue source. If the board delays one hire, skips another, trims the lobbyist's scope and cuts the Executive Director's pay, cash stays positive through all five years, with a low of $33,203 at the end of Year 3.
The pitch to a prospective member is specific. A dealer or shop pays dues to have someone in the room when Connecticut legislators write rules for the trade, and gets a show, a training calendar and an endorsed-vendor list in the same membership.
About CMBA
Legal form: Connecticut nonstock corporation, exempt under section 501(c)(6). Office: about 1,500 square feet of leased space in Hartford. Governance: a board of directors and officers drawn from member businesses, working with the Executive Director. Stage: operating since 1974. The 2027 plan is a relaunch of an existing association, and the board has approved the new dues schedule. 2026 estimate: management's unaudited figures put 2026 revenue near $442,000, of which dues are $211,980 on the old schedule, against spending of about $436,000. Audited statements and the latest Form 990 accompany any funder's copy of this plan.
How the association got here
The association was founded in 1974 as the Connecticut Motorcycle Dealers Association. In 1992 motorcycle accessory shops were admitted as full participants. In 1995 it took its present name, to cover the personal watercraft and snowmobiles that its members also sell and service.
What CMBA is for
Improve the business climate for motorsports businesses in Connecticut by promoting the sport to the public, protecting members' interests in the legislature and helping members sell more.
Aims for the first three years
| Year | Aim |
|---|---|
| 2027 | Relaunch the dues schedule (up 13.5% on 2026) and the portal, reach 294 members, hold the March expo with 55 exhibitors |
| 2028 | Reach 319 members, first operating surplus, add training and endorsed-vendor income |
| 2029 | Reach 344 members, add a part-time member services administrator and raise dues 5% |
Tax status, dues and lobbying
The IRS describes a business league as an association of persons with a common business interest, and its activities must improve business conditions in one or more lines of business. Such an association may lobby on issues related to its purpose without losing its exemption. It may have to give members notice of the share of dues used for lobbying, or pay a proxy tax on that spending (IRS, Business Leagues page The detailed rules sit in sections 6033(e) and 162(e) of the Internal Revenue Code, and CMBA relies on counsel for both.
CMBA acts on that in three ways. It keeps a lobbying log, with the lobbyist's invoices and the Executive Director's time. It states the lobbying share on each dues notice. It has counsel set the allocation method. Members who deduct dues as a business expense should confirm the treatment with their own tax adviser. Connecticut has its own lobbyist registration and reporting rules. They may reach the lobbyist, and possibly CMBA as a client or through staff time spent on lobbying, so the association confirms its position with the Office of State Ethics before each legislative session.
The Connecticut Motorsports Trade
Who the members are
CMBA draws on four groups: franchised and independent powersports dealers, accessory and service shops, suppliers that sell to those businesses, and individuals and clubs who care about riding. A count of Connecticut dealers and shops is not given here; the board's own estimate of 300 to 350 powersports businesses should be checked against state licensing records. Staff work from a prospect list of 150 non-member dealerships, shops and suppliers.
What the work costs to hire
The Bureau of Labor Statistics put the median pay of social and community service managers at $80,390 in May 2025, and of meeting, convention and event planners at $61,160. Neither occupation is an exact match for an association role, so the figures are loose guides. CMBA's Executive Director is paid above the first and its Membership Manager is close to the second.
Why members pay
Four things keep a member paying. A lobbyist watches the legislature for them. The spring show brings riders into showrooms at the start of the selling season. Training and an endorsed-vendor list save time that a small shop owner does not have, and a peer is one phone call away. The first is why a business joins; the other three are why it renews.
Who else asks for a member's dues
| Alternative | What it offers | Why a business picks it | How CMBA differs by design |
|---|---|---|---|
| National industry associations | Advocacy and research at national scale | Reach across the whole country | A Connecticut lobbyist and Connecticut legislators as the audience |
| State chambers of commerce and general trade bodies | Broad business advocacy and networking | One membership for every issue | Rules and events built for powersports, not for every retailer |
| State auto dealer associations | Programs aimed at franchised car dealers | Established staff and resources | A motorcycle and powersports focus |
| Neighboring-state powersports associations | Shows and member programs, where they exist | Familiar to dealers who sell across a border | A Connecticut show and Connecticut bill tracking |
| Riding clubs and online forums | Free community and information | No dues | No representation of businesses at the Capitol |
The table describes categories, not named organizations, and it is not a ranking. Dues schedules change and are not quoted.
SWOT
| Strengths | Weaknesses |
|---|---|
| Fifty-plus years of standing with Connecticut dealers | Two full-time staff and a heavy reliance on one March weekend |
| Dues cover 93% of Year 1 payroll | A narrow surplus that one bad event year can erase |
| A contract lobbyist already known to legislators | Affiliate members renew at only 70% |
| Opportunities | Threats |
|---|---|
| Newer segments such as electric motorcycles and e-bikes | Dealer consolidation, which can cut the number of dues payers |
| Group programs and training that members would otherwise buy alone | A rule change that raises the cost of showing or selling vehicles |
| A portal that makes renewals and event sign-ups self-service | Weather or a venue problem at the March expo |
Who Joins and Why
Four tiers
| Tier | Who it is for | Dues in 2027 | Members at start of 2027 | Members at end of 2027 |
|---|---|---|---|---|
| Dealer | Powersports dealerships | $1,650 | 80 | 83 |
| Shop | Accessory, service and repair shops | $575 | 62 | 66 |
| Associate | Distributors, insurers, lenders and other suppliers to the trade | $1,950 | 30 | 33 |
| Affiliate | Clubs, track operators, technicians and individual riders | $150 | 96 | 112 |
The dealer
A dealer owner is 40 to 65, runs a store with a parts counter, a service bay and several brands, and worries about state rules on vehicle sales, repairs and noise. A dealer joins because someone should be watching Hartford, and renews while the association keeps winning small fights.
The accessory or service shop
A shop owner has fewer employees and a thinner margin. The dues are lower, and the draw is the expo, the training courses and the group purchasing programs.
The supplier
Distributors, insurers and lenders pay the highest dues because members are their customers. They also buy sponsorships. An associate who joins at $1,950 often adds a sponsorship worth more than the dues.
The rider and the club
An affiliate pays $150 and wants a voice on riding rules and discounts at the expo. Affiliates are 36% of members at the start of 2027 and 6% of the dues dollars. They are included because they bring attendees, volunteers and a public face for the association's work.
What members ask of the association
Members want every bill that touches the trade read by someone who knows the business. They want the show to send customers into their stores, and an invoice that says plainly what the dues pay for.
Recruiting and Renewing Members
The year-one target
The plan needs 78 new members in 2027 to go from 268 to 294 after losses: 11 dealers, 15 shops, 7 associates and 45 affiliates. The 33 business joiners are 22% of the 150-business prospect list. Staff add about 25 names a year (new stores, ownership changes, lapsed members), and over five years business members rise from 172 to 210, which is 60% to 70% of the board's own estimate of 300 to 350 powersports businesses in the state. That estimate has not been checked against licensing records.
| Where new members come from | New members |
|---|---|
| Expo and ride-in day sign-ups | 38 |
| Membership Manager's visits and calls | 17 |
| Board and member referrals | 12 |
| Website and portal | 7 |
| Supplier introductions to their customers | 4 |
| Total | 78 |
How a business joins
- A prospect receives the prospectus and a call from the Membership Manager within two working days.
- A board member who runs a neighboring dealership follows up with dealers.
- The application goes to the board's membership committee, which meets monthly.
- The portal issues a pro rata invoice, due in 30 days.
- New members get a welcome call and an introduction to a committee within the first month.
Renewal
Dues invoices go out in December. A reminder follows at 30 days and a phone call at 60, from the Membership Manager. Renewal is the cheaper half of the job: it costs a phone call, where a new member costs about $90 in recruiting spend. Dealers renew at 90%, shops at 82%, associates at 85% and affiliates at 70%. In dollars, the renewing members pay 87% of what the full 2026 base would owe at the new rates, because the relaunch raises dues 13.5% over the 2026 schedule and the renewal rates allow about three points for it.
How dues are set
The board sets rates each autumn, one flat rate per tier. They rise 5% in 2029 and again in 2031, and the schedule is published a year ahead so members can budget for it.
Marketing Plan
Spend and what it buys
Year 1 marketing is $48,000: $22,000 of relaunch spend paid from the opening funds plus $26,000 of operating budget. That is 9.0% of Year 1 revenue; operating spend falls to 3.9% of revenue by Year 5 as the expo and referrals carry more of the work.
| Channel | Year 1 spend | What it is expected to do |
|---|---|---|
| Website, portal and prospectus (relaunch) | $22,000 | A site where a dealer can see dues, benefits and the legislative record, and renew online |
| Expo promotion | $15,000 | Social, radio and club email lists to bring about 4,420 paid admissions, $3.39 each |
| Member recruitment | $7,000 | Prospectus printing, supplier mixers and dealership visits for 78 new members, $90 each |
| Member communications | $4,000 | A monthly bill-tracking email and a printed annual report |
Milestones
- January 2027: new dues invoices out, 70% of renewals paid by month end.
- March 2027: three-day expo with 55 exhibitors.
- May 2027: ride-in day with about 300 riders.
- October 2027: members' summit with 200 seats.
- December 2027: 294 members and 2028 dues invoiced.
Running the Association
The Hartford office
About 1,500 square feet at $20 a square foot a year, or $30,000, with a meeting room large enough for a committee of twelve. The lease is five years. No landlord quote has been obtained.
The legislative calendar
The Connecticut General Assembly generally meets from January to June in odd-numbered years and from February to May in even-numbered years; confirm the dates with the General Assembly each year. The lobbyist tracks bills all year, and the legislative committee meets weekly while the session is open. Capitol Day, when members visit legislators, falls in the first quarter.
A year in four events
The expo in March, the ride-in day in May, Capitol Day in the first quarter and the members' summit in October. Each has a volunteer chair from the board, and staff hold the contracts. The expo is booked first, because the venue deposit is the biggest cash commitment. The venue contract is in draft, and a quote for event-cancellation and weather cover has been requested before any deposit is paid.
Systems
A member database and portal that handles dues, event tickets and committee sign-ups. Accounting software, and a lobbying log that records lobbyist invoices and staff time so the dues notice can state the share spent on lobbying. Software costs $14,000 in Year 1.
Staffing
| End of | Staff |
|---|---|
| Year 1 | Executive Director, Membership Manager, part-time communications and events coordinator, part-time bookkeeper |
| Year 3 | Adds a part-time member services administrator (month 25) |
| Year 5 | Adds a part-time events and sponsorship coordinator (month 49) |
Each post follows revenue. The downside case shows which hires are never made if revenue falls short.
Insurance and controls
- Directors' and officers', general liability, event liability and cyber cover, budgeted at $14,500 in Year 1. Workers' compensation is part of the payroll load.
- Two signatures on payments above a limit set by the board.
- An annual review by an outside accountant and a Form 990 filed each year.
- A conflict-of-interest policy, because board members are also dues payers and sometimes sponsors.
Outside parties
The contract lobbyist, the expo venue, an outside accountant and a lawyer on call. The lobbyist is the hardest to replace, because the relationships are personal. The contract is a two-year agreement at a flat annual retainer; odd-numbered years bring the long session and more work, so the board reviews scope each autumn.
Board, Staff and Lobbyist
Ruth Albanese, Executive Director
Ruth has spent fourteen years in association management, the last six running membership and events for a regional retail trade body, and earlier worked as a parts manager at a dealership. She reports to the board and runs the staff, the budget and the lobbyist relationship. She holds no vote on the board.
The board
Officers and directors are drawn from member dealerships, shops and suppliers. The board approves the budget and dues schedule, signs the lobbyist's contract and sits on the committees for legislation, the show and membership. Seats are elected by the membership at the annual meeting.
Where the team is thin
CMBA has no in-house counsel and no one on staff who has run the portal at this size. Counsel is retained for the bylaw update and the dues notice. The portal vendor trains staff before launch. The association depends on one lobbyist for legislative reach; a second voice is a goal if sponsorship allows.
If the Executive Director leaves
The Membership Manager can run the dues cycle, and the board chair has a written transition plan. An interim director from a neighboring association is the fallback. Dues are billed in December, so a vacancy in spring does less harm than one in autumn.
Ownership and surplus
CMBA has no owners and no shareholders. Any surplus stays with the association, and the board may not distribute it. The balance sheet shows its reserve as net assets.
Budget and Financial Outlook
Four revenue sources, a small staff and a contract lobbyist sit behind the tables below. Year 1 is laid out month by month because dues arrive in January and the March expo falls in the same quarter; Years 2 to 5 are annual totals.
Opening net assets and the modernization fund
| Use of funds | Amount |
|---|---|
| Computers, phones, show signage and badge printers | $12,000 |
| Office refresh and meeting-room fit-out | $10,000 |
| Legal: bylaw update, dues schedule, lobbying-disclosure policy | $8,000 |
| Relaunch: website, member portal and membership prospectus | $22,000 |
| Operating reserve (carries the dues-and-show cycle) | $148,000 |
| Total uses | $200,000 |
| Source of funds | Amount |
|---|---|
| Operating reserve carried from prior years (net assets without donor restrictions) | $120,000 |
| Modernization fund: voluntary one-time member pledges | $80,000 |
| Total sources | $200,000 |
CMBA is exempt under section 501(c)(6) of the Internal Revenue Code, the business-league category. It has no owners and no stock, so the funding table has no equity investor and no lender. The $200,000 opening position is $120,000 of operating reserve carried from earlier years plus $80,000 of one-time pledges, sought from the board and about 40 member businesses at an average of $2,000. The pledges are not yet signed. The plan counts them as cash in January 2027 and the board will not commit the relaunch spending until the letters are in hand. Because the model has no contribution line, the pledges sit in paid-in capital; in CMBA's own statements they would be contribution revenue in the year received. Of the total, $52,000 pays for the relaunch ($12,000 of equipment, $10,000 of office fit-out, $8,000 of legal work and $22,000 for the website, portal and prospectus) and $148,000 stays as cash. The legal and website costs, $30,000 together, are expensed in Year 1; the equipment and fit-out are capitalized. Two rows of the balance sheet carry the net-assets mapping. Paid-in capital is the $200,000 opening net assets. Retained earnings is the running total of surpluses and deficits since opening. Together they are net assets without donor restrictions: $158,232 at the end of Year 1 and $204,561 at the end of Year 5. A surplus is never paid out. It is added to the reserve, and federal law bars an exempt association's net earnings from benefiting private individuals (confirm the detail with counsel). The plan treats the pledges as unrestricted; if a pledge letter named a purpose, those dollars would show as restricted until spent. Year 1 cash from operations is negative $67,824, and closing cash of $110,176 is 2.5 months of Year 1 costs. If half the pledges arrive late, year-end cash is about $70,200. If none arrive, it is about $30,200, two-thirds of a month of costs, and the board would scale the relaunch back.
Membership and operating figures
- Dues come in four tiers. At the start of 2027 CMBA has 268 members: 80 dealers, 62 accessory and service shops, 30 associate members (distributors, insurers and lenders that serve the trade) and 96 affiliates (clubs, track operators, technicians and individual riders). The relaunch schedule is $1,650, $575, $1,950 and $150 a year. The 2026 schedule was $1,450, $500, $1,750 and $130, so the same 268 members would have paid $211,980 in 2026 and pay $240,550 at the new rates, a 13.5% rise. The board raises every rate another 5% from 2029 (Year 3) and again in 2031 (Year 5), rounded to the nearest $5. Year-end membership is 294, 319, 344, 367 and 390.
- Renewal rates are 90% for dealers, 82% for shops, 85% for associates and 70% for affiliates, and include about three points for the rate rise. In Year 1, 216 of the 268 members renew (81%). They pay $208,875 at the new rates, 87% of the $240,550 the full base would owe and 99% of what the whole membership paid in 2026. To land on 294 members CMBA needs 78 new members in Year 1: 11 dealers, 15 shops, 7 associates and 45 affiliates. Later years need 84, 89, 95 and 101.
- Staff keep a list of 150 non-member dealerships, shops and suppliers and add about 25 names a year for new stores, ownership changes and lapsed members. The board's own estimate, which has not been checked against state licensing records, is a Connecticut universe of 300 to 350 powersports businesses. Business members grow from 172 to 210 over five years, 4% a year, which is 60% to 70% of that range at the end. The 33 business joiners planned for Year 1 are 22% of the list; the affiliate tier fills mostly from expo and ride-in-day sign-ups.
- Dues are billed for the calendar year. Invoices go out in December; 70% is collected in January, 20% in February and 10% in March. Members who join during the year are billed from the month they join, pro rata. From Year 2 each year's joiners are counted at 55% of a full year's dues. Year 1 dues come to $235,473. The model records dues when they are collected. A December invoice run for the next year's renewals, about $221,000 for 2028, therefore never appears as a receivable or as deferred dues on the balance sheet. On an invoice basis both would be about $221,000 higher at each year end, and equity would not change.
- The March expo is a three-day public show at a Hartford venue. Year 1 takes in about $135,000: 55 exhibitor booths (38 member booths at $1,100 and 17 non-member booths at $1,600, $69,000 in all) and 4,420 paid admissions at $15. A May ride-in day adds $12,000 (300 riders at $40) and the October members' summit and awards dinner adds $45,000 (200 seats at $225), for $192,000 in total. Booths rise to 72, admissions to 6,600 and summit seats to 260 by Year 5, with booth and ticket prices up about 5% in Years 3 and 5, the same years as the dues increase. Direct costs are 52% of events revenue: venue, show production, security, AV, insurance and the dinner. The show's promotion budget sits in marketing. The venue contract is in draft, and a quote for event-cancellation and weather cover has been requested but not received.
- Sponsorship is $70,000 in Year 1 from 29 sponsors: two title sponsors at $12,500, 12 category sponsors at $2,500 and 15 supporters at $1,000. It reaches $80,000 with 35 sponsors in Year 2, $88,000 with 38 in Year 3, $98,000 with 43 in Year 4 and $118,000 with 55 in Year 5, the year the events and sponsorship coordinator starts. CMBA sells recognition packages and does not sell newsletter advertising, because advertising can produce unrelated business income that the IRS taxes. Counsel decides which sponsor benefits and which endorsed-vendor fees count as unrelated income, and the $2,500 allowance may need to rise once that is settled.
- Training, certification and endorsed-vendor income is $34,000 in Year 1: about 140 course seats at an average $190 ($26,600) plus $7,400 of fees from vendors on the association's endorsed list. Instructors, rooms and materials cost 30% of the line.
- Payroll adds 27% to wages for payroll taxes, health contributions, workers' compensation and a retirement match (15% for part-time posts). The Executive Director's $92,000 is above the BLS median of $80,390 for social and community service managers, and the Membership Manager's $62,000 is close to the $61,160 median for meeting, convention and event planners (both May 2025). Neither occupation is an exact match for an association role, so the comparison is loose. Wages in the table are launch rates; 3% annual pay raises are a separate line from Year 2.
- Lobbying is budgeted openly. The contract lobbyist is paid $38,000 and Capitol Day and legislative materials cost $5,000. The Executive Director logs about 15% of her time to lobbying, which is $17,526 of loaded pay. That makes $60,526 of lobbying-related cost in Year 1, or 26% of dues. The IRS says a 501(c)(6) organization may lobby on issues related to its purpose without losing exemption, but it may have to tell members what share of dues went to lobbying or pay a proxy tax on that spending. The underlying rules sit in sections 6033(e) and 162(e) of the Internal Revenue Code, and counsel sets the allocation method. Logged staff time and the association's own client status may bring registration or reporting duties under Connecticut law, so CMBA confirms its position with the Office of State Ethics before the 2027 session opens.
- The lobbyist works under a two-year agreement, in draft, at a flat annual retainer ($38,000 in 2027, rising about 4% a year). The long session of odd-numbered years carries more work than the short session, so the retainer is front-loaded in effort and the board reviews scope each autumn.
- Rent is $30,000 in Year 1: about 1,500 square feet in Hartford at $20 a square foot a year, rising roughly 3% annually. No landlord quote has been obtained. Insurance is $14,500 for directors' and officers', general liability, event liability and cyber cover; workers' compensation is part of the payroll load. Professional fees of $15,000 cover an annual review by an outside accountant, Form 990 preparation and legal advice. Software at $14,000 covers the member database, event ticketing and accounting.
- Receivables average 25 days. Sponsor invoices are payable in 30 days, while expo admissions and ride-in tickets are paid up front. The bad-debt allowance is $4,000 in Year 1 (0.8% of revenue), rising to $6,000.
- No income tax is modeled and there is no debt, so there are no interest lines and no debt-service ratio. A $2,500 annual allowance covers Form 990 filing and any tax on unrelated income. Equipment replacement starts in Year 2.
Revenue by source
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Member dues (four tiers) | $235,473 | $246,716 | $271,582 | $281,336 | $306,567 |
| Trade expo and member events | $192,000 | $215,000 | $250,000 | $265,000 | $295,000 |
| Sponsorship | $70,000 | $80,000 | $88,000 | $98,000 | $118,000 |
| Training, certification and endorsed-vendor program income | $34,000 | $40,000 | $46,000 | $50,000 | $54,000 |
| Total revenue | $531,473 | $581,716 | $655,582 | $694,336 | $773,567 |
| Growth on prior year | – | 9% | 13% | 6% | 11% |
Dues are the largest source at 44% of Year 1 revenue and 40% of Year 5. Events and sponsorship together are 49% of Year 1 and 53% of Year 5, and most of the events money depends on one weekend in March, so the association carries more weather and venue risk than a dues-only body would. Training is the smallest line at 6% and the slowest to build. Revenue grows 9% in Year 2, 13% in Year 3, 6% in Year 4 and 11% in Year 5. The Year 2 step is small because it has no rate rise and the show grows by only five booths. Dues grow 30% between Year 1 and Year 5, from member count and the two rate rises. Total revenue grows 46%.
The dues-and-show calendar, Year 1
| Month | Member dues (four tiers) | Trade expo and member events | Sponsorship | Training, certification and endorsed-vendor program income | Total revenue | EBITDA |
|---|---|---|---|---|---|---|
| Jan 2027 | $146,213 | $12,000 | $20,000 | $0 | $178,213 | $103,288 |
| Feb 2027 | $46,817 | $34,000 | $6,000 | $4,000 | $90,817 | $35,453 |
| Mar 2027 | $25,346 | $89,000 | $4,000 | $4,000 | $122,346 | $59,925 |
| Apr 2027 | $4,013 | $0 | $8,000 | $2,000 | $14,013 | ($24,162) |
| May 2027 | $3,567 | $12,000 | $3,000 | $0 | $18,567 | ($20,627) |
| Jun 2027 | $2,785 | $0 | $2,000 | $0 | $4,785 | ($31,325) |
| Jul 2027 | $2,388 | $0 | $7,000 | $2,000 | $11,388 | ($26,199) |
| Aug 2027 | $1,990 | $0 | $8,000 | $4,000 | $13,990 | ($24,180) |
| Sep 2027 | $942 | $9,000 | $4,000 | $6,000 | $19,942 | ($19,560) |
| Oct 2027 | $706 | $32,000 | $8,000 | $6,000 | $46,706 | $1,214 |
| Nov 2027 | $471 | $4,000 | $0 | $4,000 | $8,471 | ($28,464) |
| Dec 2027 | $235 | $0 | $0 | $2,000 | $2,235 | ($33,304) |
January to March bring in $391,376, 74% of the year's revenue, as members pay dues and the expo runs. EBITDA is positive in those three months and in October, when the summit is held, and negative in the other eight: April to September, November and December. Dues alone are 82% of January revenue. The monthly view carries no receivables or payables timing, so the year-end figure in the cash table is the one to use, and the cash low point of the year is December.
Staff and payroll
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Executive Director | $92,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Membership Manager | $62,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Communications and events coordinator (part time) | $32,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Bookkeeper | $22,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Member services administrator (part time) | $30,000 | Month 25 | – | – | 0.5 | 0.5 | 0.5 |
| Events and sponsorship coordinator (part time) | $36,000 | Month 49 | – | – | – | – | 0.5 |
| Total payroll incl. on-costs | $253,463 | $257,680 | $292,180 | $292,180 | $333,580 |
Four people are on payroll in Year 1: the Executive Director and the Membership Manager full time, a part-time communications and events coordinator working about 20 hours a week, and a part-time bookkeeper who starts in month 3. A part-time member services administrator joins in month 25, once membership passes 300 and renewal calls outgrow the Membership Manager's week. A part-time events and sponsorship coordinator starts in month 49 to sell booths and sponsorships and run exhibitor logistics. That post costs about $41,000 loaded in Year 5 and is expected to add about 4 booths, 400 admissions, and $20,000 of sponsorship, roughly $33,000 of margin, so the post does not pay for itself in its first year. The board treats it as an investment and it is the first post cut in the downside case. Part-time posts are shown at half-time salaries. Year 1 ends with two full-time and two part-time staff (3 full-time equivalents), and Year 5 with two full-time and four part-time (4). The Executive Director's pay is already in the costs, so the surplus lines show what remains after it.
Income and expenses
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $531,473 | $581,716 | $655,582 | $694,336 | $773,567 |
| Direct event, program and platform costs (venue, security, AV, catering, instructors, card fees) | ($118,949) | ($130,194) | ($146,726) | ($155,400) | ($173,133) |
| Gross profit | $412,524 | $451,522 | $508,856 | $538,936 | $600,434 |
| Payroll incl. on-costs | ($253,463) | ($257,680) | ($292,180) | ($292,180) | ($333,580) |
| Rent | ($30,000) | ($31,000) | ($32,000) | ($33,000) | ($34,000) |
| Utilities | ($6,000) | ($6,200) | ($6,400) | ($6,600) | ($6,800) |
| Marketing | ($26,000) | ($27,000) | ($28,000) | ($29,000) | ($30,000) |
| Insurance | ($14,500) | ($15,500) | ($16,500) | ($17,500) | ($18,500) |
| Professional fees | ($15,000) | ($16,000) | ($17,000) | ($17,500) | ($18,000) |
| Software subscriptions | ($14,000) | ($15,000) | ($16,000) | ($16,500) | ($17,000) |
| Contract lobbyist retainer | ($38,000) | ($39,500) | ($41,000) | ($42,500) | ($44,000) |
| Government affairs: Capitol Day, materials, committee costs | ($5,000) | ($5,500) | ($6,000) | ($6,000) | ($6,500) |
| Board, committee and member travel | ($7,000) | ($7,500) | ($8,000) | ($8,000) | ($8,500) |
| Phones, supplies and postage | ($5,000) | ($5,500) | ($6,000) | ($6,000) | ($6,500) |
| Form 990 filing and unrelated-income tax allowance | ($2,500) | ($2,500) | ($3,000) | ($3,000) | ($3,500) |
| Equipment replacement | $0 | ($4,000) | ($3,000) | ($6,000) | ($4,000) |
| Bad debt allowance on dues and invoices | ($4,000) | ($4,500) | ($5,000) | ($5,500) | ($6,000) |
| Annual pay raises (3% a year) | $0 | ($7,730) | ($17,794) | ($27,093) | ($41,867) |
| EBITDA | ($7,940) | $6,412 | $10,982 | $22,563 | $21,687 |
| Depreciation | ($3,829) | ($3,829) | ($3,829) | ($3,829) | ($3,829) |
| Interest | $0 | $0 | $0 | $0 | $0 |
| Income tax | $0 | $0 | $0 | $0 | $0 |
| Net income before start-up costs | ($11,768) | $2,583 | $7,153 | $18,734 | $17,859 |
| Relaunch costs expensed at opening (legal and website) | ($30,000) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($41,768) | $2,583 | $7,153 | $18,734 | $17,859 |
Year 1 loses $41,768 after the $30,000 of relaunch costs. The other $11,768 is the operating deficit: the full staff and the show costs run for twelve months while new members pay only part-year dues. Year 2 is the first surplus, $2,583 (0.4% of revenue). Year 3 is $7,153 (1.1%), Year 4 is $18,734 (2.7%) and Year 5 is $17,859 (2.3%) after the coordinator joins and pay raises reach $41,867 a year. Dues cover 93% of payroll in Year 1 and 93% in Year 2, then 88%, 88% and 82%, counting pay raises. Events and sponsorship pay for the rest. Association margins are narrow by design: a surplus is added to reserves and never paid out.
Cash through the dues cycle
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($67,824) | $3,586 | $6,828 | $20,384 | $17,232 |
| Equipment and office fit-out | ($22,000) | $0 | $0 | $0 | $0 |
| Funding received | $200,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | $0 | $0 | $0 | $0 | $0 |
| Owner distributions | $0 | $0 | $0 | $0 | $0 |
| Net change in cash | $110,176 | $3,586 | $6,828 | $20,384 | $17,232 |
| Closing cash | $110,176 | $113,762 | $120,590 | $140,974 | $158,206 |
Closing cash is positive every year, from $110,176 at the end of Year 1 to $158,206 at the end of Year 5. Receivables grow from $36,402 to $52,984 and absorb part of each year's surplus. Closing cash is 2.5 months of costs in both Year 1 and Year 5. The board's policy is three months, which would need about $188,000 at Year 5 spending, so the plan finishes about $30,000 short of its own target. The balance sheet leaves out the December renewal invoices described in the figures above, which would add about $221,000 to both receivables and deferred dues. No owner draws or distributions exist in an association of this kind.
Net assets and balance sheet
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $110,176 | $113,762 | $120,590 | $140,974 | $158,206 |
| Accounts receivable | $36,402 | $39,844 | $44,903 | $47,557 | $52,984 |
| Equipment and office fit-out (net) | $18,171 | $14,343 | $10,514 | $6,686 | $2,857 |
| Total assets | $164,749 | $167,949 | $176,008 | $195,217 | $214,048 |
| Accounts payable | $6,518 | $7,134 | $8,040 | $8,515 | $9,487 |
| Bank loan (none drawn) | $0 | $0 | $0 | $0 | $0 |
| Paid-in capital | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 |
| Retained earnings | ($41,768) | ($39,185) | ($32,032) | ($13,298) | $4,561 |
| Total liabilities and equity | $164,749 | $167,949 | $176,008 | $195,217 | $214,048 |
Break-even and dues coverage
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -1.5% | 1.1% | 1.7% | 3.3% | 2.8% |
| Net margin (before start-up costs) | -2.2% | 0.4% | 1.1% | 2.7% | 2.3% |
| Payroll incl. pay raises as share of revenue | 48% | 46% | 47% | 46% | 49% |
| Revenue per full-time equivalent at year end | $177,158 | $193,905 | $187,309 | $198,382 | $193,392 |
| Average monthly revenue | $44,289 | $48,476 | $54,632 | $57,861 | $64,464 |
| Monthly revenue needed to cover operating costs | $45,142 | $47,788 | $53,453 | $55,439 | $62,136 |
| Debt service cover (EBITDA / interest + principal) | – | – | – | – | – |
Year 1 averages $44,289 a month against $45,142 needed to cover operating costs. Year 2 averages $48,476 against $47,788, a cushion of 1.4%. Year 3 is $54,632 against $53,453 (2.2%), Year 4 is $57,861 against $55,439 (4.4%) and Year 5 is $64,464 against $62,136 (3.7%). A cushion that narrow is the real risk in the plan, and a cancelled expo weekend would remove several years of surplus. There is no debt, so the coverage row is empty.
A 20% drop in every revenue source
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $425,178 | $465,373 | $524,466 | $611,016 | $696,210 |
| Net income before start-up costs | ($47,688) | ($39,727) | ($9,376) | $7,022 | $10,411 |
| Net income after start-up costs | ($77,688) | ($39,727) | ($9,376) | $7,022 | $10,411 |
| Closing cash | $80,233 | $42,074 | $33,203 | $39,187 | $48,637 |
This case takes 20% off every revenue source in Years 1 to 3, which could be a poor expo year, lost sponsors, or members leaving, and narrows to 12% in Year 4 and 10% in Year 5 as the show rebuilds. The response: the bookkeeper starts two months later; the member services administrator starts a year late; the events and sponsorship coordinator is never hired; marketing is cut 20%; the Executive Director takes a 20% pay cut until pay is restored in Year 5; for Years 1 to 4 the lobbyist retainer is cut 25%, Capitol Day and legislative spending 30% and board travel 40%; and equipment replacement waits until Year 5. The association loses money in Years 1 to 3, $77,688 after relaunch costs in Year 1, then $39,727 and $9,376, and earns $7,022 in Year 4 and $10,411 in Year 5, both below the base case. Cash stays positive, with a low of $33,203 at the end of Year 3. Equity ends Year 1 at $122,312. The reserve carries the first three years, and the association comes through with a thinner staff and a smaller voice at the Capitol. Without any response, the same 20% shortfall leaves cash at $33,648 at the end of Year 1 and negative $52,505 at the end of Year 2.
Sources
- IRS, Business Leagues: purpose of a section 501(c)(6) organization, lobbying, and notice of dues used for lobbying.
- Bureau of Labor Statistics, Social and community service managers, Occupational Outlook Handbook, May 2025 median pay.
- Bureau of Labor Statistics, Meeting, convention, and event planners, Occupational Outlook Handbook, May 2025 median pay.
- Connecticut lobbyist registration thresholds and the General Assembly calendar are not quoted as fixed figures. Confirm both with the Office of State Ethics and the General Assembly before relying on them.
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