2/2/07: Sally Huntington, NFSS President, calls the meeting to order.

PRESENT: Sally Huntington, Cecil Gunby, Laura Bewley, Bill Fiorini, Rebecca Mikel, Bob Peers, John Wilson, Doug White, Tom Keegan, Raspberry, Brenda Josselet, Paula Hansen, Sharon Dvorak, Ron Castaner, Lisa Murphy, Harry Bryant, Gail Benson, Alfred Mion, Bill Parlee, Terry Cox, Danny Gonzales, Ginny Allen

ABSENT: Roberto Rosa

RESIGNATIONS: 1/25/07: Harry Bryant, Editor (Retained 2^nd VP, Website Manager, Legislative Affairs positions)

2/16/07: Bill Fiorini, Region 1 Vice-President

NEW OFFICERS: 2/27/07: Katy Dodd, Editor

TREASURY UPDATE – Lisa Murphy

AUDITS: 2004 audit completed by Bob Peers & Rebecca Mikel; 2005 cannot be completed until IRS issues complete; 2006 cannot be completed until the IRS 990 form is done, which is due 5/15/07.

ASSET TOTALS PER 2004/2005/2006 IRS FORM 990:
	2004	2005	2006
BEGINNING	$26,172	$24,987	$7,274
ENDING	$24,987	$7,274	$8,874
(ending 2006 balance includes $5243.72 cash in bank & $3630.50 split band inventory)

Although there are missing documents & large decreases in assets, all money "in" and "out" can be accounted for and no misappropriation of funds is evident. Income has been below projections while expenses remained the same. BOD meeting of 12/31/05 reveals unbudgeted expenses for an election; change in printers for the Journal resulting in 7 rather than 6 journals, decrease in sales from all departments, & a large band order. Their projected budget indicated a potential loss of $2,158.73 for the year & suggestions included Regional VP expenses be omitted & cost of journal be decreased. Review of 2006 budget reveals a $10,434 loss.

DEPARTMENT	BUDGETED FOR 2006		ACTUAL COST 2006		DIFFERENCE
	INCOME	EXPENSE	INCOME	EXPENSE	INCOME	EXPENSE
Judges Panel	$240.00	$350.00	$110.00	$88.72	-($130.00)	$261.28
Affiliations/Awards	$3,500.00	$2,525.00	$2,255.50	$1,807.41	-(1,244.50)	$717.59
Bands	$14,200.00	$11,993.73	$11.043.71	$9,639.13	-($3,156.29)	$2,354.60
FinchSave	$300.00	$390.00	$15.00	$0	-($285.00)	$390.00
Journal/Advertising	$2,000.00	$26,982.00	$570.00	$26,015.61	-($1,430.00)	$966.39
FinchShop	$3,300.00	$1,800.00	$1,231.50	$3,104.43	-$(2,068.50)	-$1,304.43)
Membership	$22,687.00	$2,350.00	$16,506.92	$579.71	-($6,180.08)	$1,770.29
MISC	$500.00	$1,495.00	$904.20	$1,836.1	$404.20	-($341.12)
TOTAL	$46,727.00	$47,885.73	$32,636.83	$43,071.13	-($14,090.17)	$4,814.60
PROFIT/LOSS	-($10,434.30)

ANTICIPATED UPCOMING EXPENSES:

IRS Response expected late February/Early March. Potential fine of $4600 for failure to file a timely IRS Form 990 per IRS info we rec’d. Once penalty assessed and paid, we can file IRS Form 843 "Claim for Refund and Request for Abatement".

BAND ORDERS Paula to review inventory & place order

JOURNAL $850 deposit to be paid Monday, 2/5/07 for the Jan/Feb. Estimating $2663 for printing, $850 for postage and mailing services, and $300 for editors fee and misc. expenses, totaling $3813.

The Treasurer presents the following information for review with regard to Journal costs for the calendar year 2006. This chart provides information relating to the cost of Journals "Mailed" and does not take into account copies printed over actual membership numbers. Over-runs were to be for 10% over the total membership numbers plus affiliations.

COSTS BASED ON COPIES "MAILED": (Per Treasurer)

ISSUE	PRINTED	MAILED	DIFFERENCE	A *	B **	C ***
Nov-Dec 05	970	736	234	$3.42	$467.46 =$6.34	$4975.93=$6.76
Jan-Feb-06	961	697	264	$2.47	$3530.37=$5.06	$3838.84=$5.51
Mar-Apr-06	960	739	221	$2.79	$4236.24=$5.73	$4544.71=$6.15
May-Jun-06	961	697	264	$2.73	$3987.73=$5.72	$4296.20=$6.16
Jul-Aug-06	860	694	166	$2.83	$3818.06=$5.50	$4127.43=$5.96
Sept-Oct-06	908	702	206	$2.93	$3924.03=$5.59	$4232.50=$6.03
6 Issue Total				$17.07	$34.11	$36.57
6 Issue Average				$2.85	$5.66	$6.10
* A: Cost to Print only ** B: Cost to print + cost of labeling and mailing *** C: A+B+Editor’s fees and administrative fees

COSTS BASED ON COPIES "PRINTED": (note difference in time period represented) (Per Editor)

ISSUE	ORDERED	PRINTED	MAILED	DIFFERENCE	A	B	C
1-2/06	950	961	697	264	$2.47	$3530.37=$3.67	$3838.84=$3.9
3-4/06	950	960	739	221	$2.79	$4236.24=$4.41	$4544.71=$4.73
5-6/06	950	961	697	264	$2.73	$3987.73=$4.15	$4296.20=$4.47
7-8/06	900	860	694	166	$2.83	$3818.96=$4.41	$4127.43=$4.80
9-10/06	900	908	702	206	$2.83	$3924.03=$4.42	$4232.50=$4.66
11-12/06	750	756	683	73	$2.93	$3513.11=$4.65	$3740.02=$4.95
6 Issue Total					$16.58	$25.71	$27.60
6 Issue Average					$2.76	$4.29	$4.60
* A: Cost to Print only ** B: Cost to print + cost of labeling and mailing *** C: A+B+Editor’s fees and administrative fees

Over-runs quantities in 2006 were average of 200 copies over membership each quarter for a total of approximately 1200 for 2006. Extra copies used to replace lost issues, sent to foreign members, sent as samples to advertisers, & used as a recruitment tool. Accurate membership information will help reduce over-runs.. See further discussion under "Membership" later in this report. Quantity discounts reviewed & a motion made to reduce over runs made and seconded. Journal cost should include those needed for actual membership and affiliations plus the 10% agreed upon previously. Over-runs beyond the 10% were not approved and are a costly hand-out.

2007 Budget projections verify that expected income from Membership and Advertising will not pay for budgeted expense of the Journal and fall short by approximately $3400..

The following possible solutions were discussed:

INCREASING MEMBERSHIP DUES (Tom Keegan):
BOD DISCUSSION: Requires a by-law change, provides no immediate relief, and may reduce membership numbers. We must first reduce spending. Until we reduce cost of journal and other spending, increasing membership will not address financial problems.

ELIMINATE MONEY FROM OTHER PROGRAMS (Harry Bryant):
BOD DISCUSSION: 2006 vs 2007 budgets reveal, there is $0 allocated to Finch Save & all other budgets were decreased while Journal budget was increased.

INCREASING ADVERTISING RATES: (Gail Benson)
BOD DISCUSSION: Advertising rates cannot be changed mid-stream, for pre-paid ads, may give consideration to in the future.

DECREASING THE THICKNESS OF THE JOURNAL (Raspberry)
BOD DISCUSSION: Content of the Journal will be reviewed and a decision made as to continued posting of some repeated organizational information

ELIMINATING THE PRACTICE OF CURRENT PRINTER AFFIX MAILING LABELS AND POSTAGE (Gail Benson):
BOD DISCUSSION: Current labels used on the Journals are bar coded and scanned at the post office to speed delivery process. If we assume this responsibility, we need to get Journals from the printer to person(s) affixing labels and postage. Many post offices won’t accept 700 journals across the counter. This adds significant cost & a decision was made to not have mailing house do the labels and postage for upcoming issue.

ASKING MEMBERS FOR TAX-EXEMPT DONATIONS (Brenda Josselet):
BOD DISCUSSION: Donations to 501(c) 3 (not for profit) organizations can be entered as a charitable contribution on Schedule A – as long as no benefits are received by the donor (free advertising, membership, etc.). Donors would need to check their adjusted gross income to determine if they are limited by the 50% rule.

USING NFSS BROCHURE FOR RECRUITMENT EFFORTS (Bob Peers)
BOD DISCUSSION: This is much less expensive than copies of the Journal but needs to be revised before being used. Harry will update and advise when complete.

ELIMINATING EDITOR’S FEE (Harry Bryant):
BOD DISCUSSION: At the time of this meeting 3 candidates have expressed interest in Editor position – each was informed there was a stipend available for serving . Sally will check with each of the 3 to determine continued interested if stipend is eliminated. We need to look at alternatives that allow savings without the loss of quality. (SEE MOTION #2007-1)

SUMMARY: Total journal costs have exceeded a level we can continue with current revenue streams. Discussions regarding financial issues have been ongoing and have been addressed by Lisa Murphy, current Treasurer as well as Treasurers before her. All decreases are documented in Treasury reports from the beginning; treasury was depleted by spending more than it was taking in. Upping membership or sales not enough to solve financial problems. Losing Finch Shop Inventory, failing to file a timely 990 form with the IRS, and declining revenues combined with over-spending – have all contributed to current financial condition. The cost to litigate recovery of the lost finch shop items would have been more than value of the lost merchandise. Treasury reports have indicated over-spending was occurring & biggest financial drain is the Journal - it is costing more than we are taking in. Initially felt the Journal would improve credibility and increase membership. The best Journal was created; unfortunately it didn’t generate the income expected . As a result, we now need to reduce spending on it. Gail Benson worked with mailing company and mailing of the Jan/Feb Journal has been changed from 1^st to 4^th class, resulting in somewhat later delivery, but a significant immediate savings. Foreign journals, however, cannot be mailed 4^th class. Treasury sent the check for postage to the printer on February 6.

MISC TREASURY INFO: Lisa has purchased a copy of Quicken 2006 Home and Business Software which should help track income/expenses more accurately in the future. The software also will enable Lisa to generate a number of reports based on submitted inquiries.

PANEL JUDGE REPORT – Cecil Gunby

Society Standards This standard was published in draft form in the Nov-Dec ’05 Journal for comment, however, membership comments were not received for approx. 1 year and were on the P-P forum. DNA testing is only way to solve questions of cross-breeding. There is no proof at this point as to what is or is not a hybrid. Eliminating Euros only ostracizes a large group from the already diminishing group of bird fanciers. If Euros are accepted, we need an exclusionary statement which is specific so as to not allow Societies crossed with other species. Raspberry will write article for Journal summarizing discussions Judges do need something to judge the society against, and the rewritten standard is acceptable if the exclusionary statement is included. .Show people want to compare their bird to the standard of excellence held up by an organization who guards that standard to promote the best for the breed. They want their bird on the bench to compare to others to seek improvements and find faults. Future updates are inevitable but this is no reason not to move ahead and approve proposed standard. Raspberry’s article will help educate members. All agree no one decision will please everyone.

Change Judging Handbook to Allow Hybrids in Society Finch Section

See Motion # 2007-8

Champion of Section Award – Raspberry

"Champion of Section Award" proposed for specialty breeders for points earned within individual sections to allow for a higher level of recognition for those breeders. Raspberry will develop a committee to investigate details and report back to the BOD.

FINCH SHOP UPDATE – Sharon Dvorak

Four vendors contacted regarding drop ship products with the current NFSS logo No inventory to be ordered or stocked; setting up drop ship vendors only. One vendor will print merchandise with our logo for base cost - we set retail price and receive free on-line shop. They produce the item, handle payment transactions, ship product, manage returns/exchanges, and offer customer service with toll free number/ e mail. Our Pay Pal account credited monthly. One source required customers to register, so negotiations terminated. Continuing work with 2 other vendors. We might see larger profit margins if we sell items on our own web site however, we can’t afford to buy inventory and set up the website store at this time. Investigative process continues - no contracts signed or purchases made at this time.

MEMBERSHIP UPDATE – Brenda Josselet

Projected income for renewals over the next 6 months is approximately $7600.

Through contact efforts and John’s help in unsubscribing expired members from the forum , we are seeing renewals occurring

Membership as of 1/31/07:
Single: 510
Dual 91 (x 2 = 182)
Foreign: 20
Junior: 8
TOTAL: 702

Brenda notes the motion to limit journal over-runs to 10% over membership plus affiliations "as of the 15^th of the journal month" will make her job easier. She suggests deadline dates be included along with a statement to inform members of this change. Statement should also be included in the Journal under "Publisher’s Info", on Membership Applications, and membership forums. The final copy of the Journal to which a member is entitled during their paid membership period may be due after membership is expired in some cases.

1^st VICE-PRESIDENT REPORT, Bob Peers

Bob has e-copies of old NFSS brochures which, if updated, could be used for recruitment efforts and asks for assistance with required updates. He has talked personally with all Regional VP’s and was able to get all onto the Forum with the exception of one who has connectivity problems with his current computer who is now rec’g meeting reports and lists of motions to be voted on from Rebecca. He will vote by sending his vote directly to Sally. NFSS website including VP information is being updated.

AWARDS MANAGER REPORT – Bob Peers

Awards form is being added to NFSS website. There has been one order received this year. Discussion held regarding offering plaques/awards for specific types of finches; i.e. "Best Carduelan in Show" to attract new exhibitors. This can be done with no extra cost to NFSS & Bob will include information regarding plaques/awards to Show Managers in his correspondence and add to Affiliation package info. Suggestions for any other appropriate awards are welcomed.

2^nd VICE-PRESIDENT REPORT – Harry Bryant

Full BOD approval for new Editor, Katy Dodd. Harry Bryant retained responsibility for Jan/Feb Journal. Total cost for that Journal was $2880.85, it was mailed on 2/22/07. Sally Huntington assumed responsibility for the Mar/April Journal until a new Editor could be appointed. Several Affiliated Clubs’ names and information was not included in the Jan/Feb 2007 Journal. This information will be included in the next issue of the Journal and the NFSS website will be updated to include this information also.

YOUTH PAGE : Suggestions made for attracting younger members – i.e. youth activity pages, interviewing or featuring a youth in periodic journal articles. Efforts should also focus on involvement at local shows, show raffles for children, articles on keeping/raising more common birds and occasional article written by a youth. Sally requested Raspberry consider submitting information for an occasional youth-page for the Journal.

QUARTERLY JOURNAL: Quarterly publication may assist in saving resources, maintain quality, and possibly improve publication. Changing distribution does require a by-law change and a membership vote. With regard to the effects it might have on advertising which is already paid for, consideration may be given to producing the scheduled 3 in first half of the year, but only 2 in last half and would save approximately $4000 for 2007. It may also take pressure off the new editor and ease demand for articles and align the journal with quarterly BOD meetings and enable us to provide more timely information to the members. This may be an alternative to cutting the overall size or quality of the journal.

REGIONAL MEMBERSHIP DRIVE – Gail Benson

Benefits of increasing membership and the incentives available for doing so discussed; i.e. recognition, gifts, competition, money, A suggested ad to be placed in the journal was presented which allows for a contest of increasing membership between the NFSS regions. Gail makes proposal for ad, BOD offers support; will be published in Journal.

BAND REPORT – Paula Hansen

To date, $5443.55 in revenues and $3604.27 in expenses. Estimates indicate band expenses and revenues will fall well within the 2007 approved budget. The following information presented with regard to the quantities of specific band sizes sold for Jan-Dec of 2006: A: 620, B: 840; C: 187; D: 17,340; E: 2820, G: 750; J: 300 K: 460; L: 400; M: 120; R: 0; S: 50; T: 0.

ADVERTISING – Gail Benson

January 07 advertising income was $887; February /07 was $306. Total 2007 estimated income is $2286. Last increase to advertising rates was in the May/June 2004 journal. The exception is for the full page inside cover rate – this was increased from $40 issue or $204/year to $45/ssue or $225/year in the March/April 2006 issue. It may be time to consider increasing the rates for other advertising in the Journal. Costs related to color vs black/white and the cost effectiveness discussed.

ELECTIONS – Sally Huntington

Sally asks for volunteers to serve on the Election Committee, Ginny is finishing "general requirements" documents for each office; Ginny and Rebecca have completed the Pro-Tem Election Ballot for the Mar/April journal. Our schedule for elections is as follows:

• Pro Tem Election ballots will be in Mar/April Journal and must be returned no later than 4/28/07
• Nominating Committee for General Election named during 2^nd Quarter BOD Meeting
• May/June Journal: President announces upcoming election and asks for volunteers and nominations; Bios/resumes sent to the Election Chairperson; Bylaw description of each position will be listed along with statement of practical application of responsibilities;
• 3^rd Quarter BOD Meeting: Election Committee announces to the NFSS Board of Directors the slate of candidates for the 2008-10 term in time to meet the July/August Journal publishing deadline
• July/August Journal: Candidates’ bios/resumes printed and a statement that ballots will be sent to the membership
• September 1-8: General Election Ballots provided to all current members no later than September 16, 2007; returned ballots must be post-marked by November 15, 2007. Ballots returned to an Accounting Firm and counted.

On-line voting may increase voter "turn out"; but can we maintain integrity/confidentiality of the votes, reach members who are not "on line", and validating votes if they are not rec’d on time. We will have to provide hard copies to those members who are not on line, the most cost effective way is to do so through an insert in the Journal.. Consideration will be given to putting ballot on the web site,

MISCELLANEOUS

Officers who do not participate in BOD meetings aren’t upholding responsibilities. There are varying options for participation including e mail, personal contact with secretary, BOD forum. Concerns are with those who do not participate without notice to Presiding Officer for 3 consecutive meetings. This will be addressed through President and 1^st VP.

Editor is appointed position and does not carry a vote. Restructure of responsibilities as it relates to producing Journal will now include "Publications Team" comprised of 4-6 people & the entire team will not need vote.

2005 and 2006 BOD meeting minutes have now been posted on the NFSS website.

Harry will form a committee to investigate the details and costs relating to purchasing bonds for financially responsible officers.

Rebecca asks for Emergency Contact Information for all BOD members. This will be kept confidential, copied to President only, and used for emergency situations only.

The BOD received 3 letters requesting a by law change requiring meeting minutes report the breakdown of votes by individual BOD members. One letter was withdrawn. The topic will be an agenda item in the second quarter meeting.

REGIONAL SHOWS AWARDED:

• Region 1: Birds of a Feather, Bedford, NH, 10/27/07
• Region 2: Raleigh-Durham Cage Bird Society, Raleigh, NC May 26-27/07
• Region 4: Texas Bird Breeders, Temple, TX 11/3/07
• Region 6: Central California Cage Bird Club, Modesto, CA 10/27/07

As others are requested and awarded, they will be announced.

NCBS will be in Denver, Colorado this year in November.

AFA Convention will be 8/22-25/07, at the Airport Hilton Hotel, Los Angeles, California. This year’s special event is "Behind the Scenes" tour of the L.A. Zoo Bird Department. Paula will attend, there will be an NFSS table.

MOTION	BY	2nd	COMMENT	RESULT
2007-1	H. Bryant	Raspberry	The Editor’s Fee of $200 per issue be waived until it is determine Society is in a better position to pay it.	Fail
2007-2	B. Peers	L. Murphy	The quantity of Journals printed each issue will be limited to 10% over membership plus affiliations, as of the 15th of the month of the issue	Pass
2007-3	C. Gunby	B. Peers	Accept Society Standard as written	Pass
2007-4	Raspberry	L. Bewley	Create committee to investigate "Champion of Section" Award & report back to BOD	Pass
2007-5	WITHDRAWN	FOR	REVISION	N/A
2007-6	WITHDRAWN	FOR	REVISION	N/A
2007-7	B. Josselet	P. Hansen	* (Statement below) to be placed in journal, on membership application, membership renewal notice, and on both forums	Pass
2007-8	T. Keegan	C. Gunby	**(Statement below) To change "No hybrid" rule of NFSS standard of judging in Judge’s Handbook	Pass
2007-9	P. Hansen	R. Mikel	Motion to remove a member from the Society in response to letters rec’d from members filed with $25 per bylaws	Fail
2007-10	P. Hansen	Raspberry	Accept 2004 Audit as submitted	Pass
2007-11	H. Bryant	R. Mikel	Eliminate membership fees from Finch Save immediately and encourage all members to join	Pass
2007-12	P. Hansen	D. Gonzales	Adjourn 1st Quarter Meeting	Pass

*"New Memberships and late renewals (membership expired) received after the 15^th of the first month of Journal publication will receive 6 issues beginning with the following Journal. Cut-off dates are as follows: Jan 15, Mar 15, May 15, July 15, Sept 15, Nov 15. "

**"An NFSS Judge may not judge a hybridized bird with only the following exception in the case of the Society Finch, due to the lack of consensus on the species origins of the Society Finch and the practice of hybridization among Society enthusiasts. Because it is impossible to reliably distinguish a hybrid from a non-hybrid bird on the show bench, all Society Finches of American, European, and Japanese origin will be judged within the confines of Section 6".

Respectfully submitted,

Rebecca E. Mikel

Executive Secretary, Pro-Tem

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