Newsroom Annual Report

Trusted Mentors in Turbulent Times Creating Jobs & Saving Jobs to Keep America’s Small Businesses Open FY 2008 ANNUAL REPORT WWW.SCORE.ORG contents Mission: SCORE provides resources and expertise to maximize the success of existing and emerging small businesses. Board Chair Perspective ......................................... 1 SCORE Performance ...........................................2-3 SCORE Community Outreach .............................4-5 Supporting Disaster Preparedness ......................... 6 Volunteering in Communities .................................. 7 Small Business Mentoring ...................................... 8 Million Dollar Businesses ........................................ 9 The SCORE Foundation Financial Report .......10-12 SCORE Association Financial Report ................... 13 Volunteer Board of Directors ............................14-15 SCORE Supporters ..........................................16-17 board chair perspective Trusted Mentors Make a Difference Now more than ever, mentors matter. In times of uncertainty, building additional skills and capabilities for success are competitive advantages. In turbulent times, SCORE serves as a network of trusted mentors to help entrepreneurs solve problems and seek new opportunities. We help Americans create companies and jobs. Just as important, we help Americans stay at work in their own businesses through good times and bad. We help start almost 20,000 new small businesses each year, and create more than 25,000 new jobs, according to U.S. Small Business Administration (SBA) economic impact studies. Trusted mentors help new entrepreneurs test ideas and form companies. When problems arise, SCORE provides management, systems and decision-making expertise to help entrepreneurs arrive at solutions. According to a recent study by the Kauffman Foundation, 64 percent of the respondents feel the current crisis will most severely affect Main Street and a staggering 87 percent believe this will be personally bad for them. While there are 26.4 million small businesses and about 637,100 new business starts each year, small businesses that survive and thrive long-term are vital to the economy. SCORE volunteers offer you and every American a trusted and confidential advisor—a counselor who can look beyond the turbulence of the day to the future’s potential. SCORE provides the experience, expertise and commitment to mentoring on complex business issues, plus training programs tailored to specific management topics and local workshops to meet market needs in your community. I believe entrepreneurs make their own luck. Surrounding yourself with resources, know-how and mentors only increase an entrepreneur’s chances for success. SCORE helped custom shoe designers Fabiana Rigamonti and Marina Rosin-Levine of Due Farina in New York City find manufacturers and develop marketing and merchandising plans. SCORE counselor Harry Dannenberg meets with them monthly. He helped them move manufacturing to three different locations to keep manufacturing costs competitive. Due Farina’s third move came after the dollar fell and a quick change in manufacturing was needed to ensure the firm’s survival. Today, Due Farina has reached $1 million in sales with designer shoes in Nordstrom stores nationwide. Entrepreneurs are optimistic and adaptable to change. SCORE is knowledgeable and capable of helping entrepreneurs plan, forecast and reset their course when the economy takes a downturn. SCORE clients like Vermont Teddy Bear, Vera Bradley Designs and the Jelly Belly Candy Company have grown into multi-million dollar businesses. Every entrepreneur we help is a company, a job and a contributor to the economy. Each small business matters and mentors make a difference. Sincerely, Board Chair Doug Kindred, MBA SCORE “Counselors to America’s Small Business” www.score.org 1 SCORE performance SCORE Helps Entrepreneurs Succeed in Times of Need 11,200 volunteers 357,637 clients in FY08 1.3 million volunteer hours Expert Mentoring Makes an Impact Real lives are affected by the economy. SCORE helps real people realize their dreams and make it through turbulent times. SCORE mentors make a real difference in planning, acquiring capital and adapting to changing conditions. SCORE mentors have faced economic opportunities and trying economic times. They know how important it is to make payroll, repay a line of credit, anticipate the drag a down economy can have on a business, and most importantly, what to do next. “Fuel prices were up. My interest rate went up, making my loan all but impossible to cover,” says Sandra Lowe, owner of Service West Delivery in Phoenix. “Thanks to SCORE’s advice, I stabilized my cash flow. As the economy went down, I was able to downsize real costs. I am not sure what would have happened if I had not gone to SCORE.” Returning from Afghanistan, U.S. Marine Darryl Alexander began planning his transition to civilian life. He struggled with the idea of how to start a restaurant. Phoenix SCORE Counselor Jim Batz helped Darryl analyze the risks, capital costs and market opportunity. Then, Darryl researched everything from equipment, payroll and insurance costs to product/price comparisons of competitors. As a result, Memphis Best BBQ exceeded first-year revenue projections. After September 11, flight attendant Jamie Fine began worrying about job security in the airline industry. She decided to start a business in a completely different industry. After research and planning, she came up with the idea of a niche business selling $1,000 cakes. Jamie met with Atlanta SCORE Counselor Pat Travisano for more than a year to map out a business plan, financial plan and loan application. Now she has one store and three employees. Adrienne Simpson saw a trend to start a moving service especially for seniors and baby boomers. Owner Adrienne Simpson turned to Atlanta SCORE Counselor Jeff Mesquita when she started her company to help her create a business plan, secure financing and publicize her business. Today, she attends at least three SCORE workshops a year. These four businesses have combined revenues of $1.8 million, employing 31 workers. Adrienne Simpson Owner, Smooth Mooove Senior Relocation Services Stone Mountain, Ga. “SCORE Counselor Jeff Mesquita really helped me turn my business around. Everyone at SCORE is always very helpful and they make you think. They ask you all the right thoughtprovoking questions to see if you’ve got what it takes to do this.” Darryl Alexander Owner, Memphis Best BBQ Buckeye, Ariz. “SCORE Counselor Jim Batz has been a wonderful mentor. One thing he stressed early on was defining the mission of my business and considering every possible influence, threat and opportunity. Now I understand what he was talking about.” A cake by Jamie Fine Owner, Sugarplum Visions Marietta, Ga. “SCORE Counselor Pat Travisano gave me the confidence to move forward. SCORE is really wonderful. It really got me started and made me realize that, yes, I can do this. SCORE is an amazing resource for anyone who wants to start a business.” 2 SCORE FY 2008 Annual Report SCORE performance SCORE Mentoring Helps Create Jobs & Businesses 19,732 new business starts 25,000 jobs each year 8 million clients served SCORE CEO Ken Yancey Reports on Performance SCORE helped create 19,732 new small businesses in 2007. This means that one of every 10 clients starts a business, according to an SBA report sent to Congress. Entrepreneurs count on SCORE for management insights and expertise. Especially in today’s economy, SCORE fulfills a vital role in helping small business owners make it through the recession to stay in business and keep Americans employed. SCORE counselors provided free and confidential mentoring and workshops to 357,637 clients in FY08. Total SCORE services grew 13 percent. In 2008, SCORE reached a major milestone, helping its 8 millionth client with expert mentoring and training. Entrepreneurs assisted by SCORE created 25,000 new jobs. One in seven new clients created a job in 2006, according to a 2008 Impact Study conducted by the SBA. SCORE receives $4.95 million from a federal grant. The 1.3 million hours donated by SCORE volunteers are valued at $195 million using a standard hourly consulting fee of $150. SCORE provides a tremendous value to America’s economy. 180 160 140 120 100 80 60 40 20 0 Counseling Clients In-person: 112,197 Online: 60,621 Workshop Participants In-person: 133,152 Online: 51,667 Total: 172,818 Total: 184,819 SCORE CEO Ken Yancey Training • Local Workshops: 6,832 • Attendees: 133,152 • Online Workshops: 42,080 • Attendees: 51,667 Volunteering • Volunteers: 11,200 • Chapter & State Leaders: 442 • Counseling Sessions: 317,142 • Volunteer Hours: 1,316,431 Chapter of the Year Winners Atlanta SCORE increased services by 50 percent in FY08, helping nearly 12,000 small businesses. SCORE honored Atlanta SCORE, led by Chapter Chair Steve Bloom and Vice Chair Jeff Mesquita, as the National SCORE Chapter of the Year. www.score.org 3 SCORE community outreach Community Support Expands Training, Tools & Resources in a Tight Economy 52 corporate supporters $550,000 donated ads $1,035,333 in donations Alliances Support Services for Small Business Today’s entrepreneurs face many challenges. These include lower consumer spending, rising unemployment, tightening credit, and inflation pressures that hit both businesses and customers. SCORE is proud to join with leading companies and organizations to add services and resources that can help small businesses in communities nationwide. SCORE’s community supporters help expand growth opportunities by providing guides, tools and workshops. Fundraising lets SCORE serve more clients and make a positive impact with businesses that may be struggling to stay in business and handle increasing costs. SCORE thanks all the volunteers and corporate sponsors for their ongoing financial support. SCORE honored Edie Fraser with the Lou Campanelli Award for her strong support of women in business and charitable contributions. She received the award at SCORE’s Afternoon of Vision 2008 in Washington, D.C. “SCORE is a cornerstone of what is the best of this country,” Edie says. “Small business is the most significant part of our economy across this nation. SCORE is the premiere source of free counseling and advice and a source of loan information for America’s aspiring entrepreneurs.” Sue Hartman and Edie Fraser Edie Fraser, a leading diversity advocate in Washington, D.C., received the Lou Campanelli Award for her outstanding volunteerism, philanthropy and dedication to entrepreneurship and SCORE. She founded the Business Women’s Network and is a member of the Committee of 200. Published by ! " # " $ Published by Really Structure Your Business: A Guide to Forming a Corporation How or Limited Liability Company (LLC) How To Really Start IN COOPERATION WITH To Your Own Business www.score.org SPONSORED BY IN COOPERATION WITH www.incorporate.com/score3 www.score.org SPONSORED BY www.incorporate.com/score2 More than 500,000 entrepreneurs have used the how-to workbooks How to Really Start Your Own Business and How to Really Structure Your Business. These popular counseling and workshop guides are sponsored by The Company Corporation. SCORE created a free guide on marketing outreach and order fulfillment, 10 Simple Steps to Finding Customers…and Delivering the Goods. The workbook, presented by The UPS Store, provides value to small business owners seeking to grow sales. The Roadmap to Success by SCORE offers the real nuts and bolts of how to research and select a franchise. FranNet, which sponsored the workbook, has chosen SCORE to help bring entrepreneurs the best of small business mentoring. 4 SCORE FY 2008 Annual Report SCORE community outreach SCORE Reaches 2.8 Million with 24/7 Resources & Advice 112,288 online clients 185,698 online subscribers 2.8 million Web visitors Fast, Easy Access to Online Advice Immediate access to information and resources is important to today’s entrepreneur. SCORE provides Ask SCORE advice by email 24/7. SCORE offers more than 600 business skills online. Entrepreneurs can search by business question or keyword. Then, choose a mentor by reading his or her list of skills and biography. The Find SCORE mapping tool helps entrepreneurs find a SCORE office instantly. Web visitors can access SCORE’s free “how-to” articles, 40 online workshops, a series of 5-minute podcasts, and the SCORE Women’s Success Blog. Volunteer experts have skills in strategy, management, finance, budgeting, planning, marketing, manufacturing, import/export and more. SCORE serves entrepreneurs with in-person mentoring and nearly 7,000 local workshops. Online, more than 60,000 people Ask SCORE for advice, and 51,667 took online workshops. SCORE offers timely resources to aid entrepreneurs through monthly tips, trends and expert interviews. SCORE eNews provides access to new resources, important trends and resources for small businesses. Each month, SCORE Expert Answers interviews an expert on vital business topics from managing and collecting cash to resilience in turbulent times to networking for sales success. SCORE Women’s Success Blog http://womensblog.score.org The SCORE Women’s Success Blog provides fresh takes on cash flow, social media, sales, human resources and managing a business. For women by women, Technorati ranks SCORE in the top one percent of all blogs. SCORE Small Business Web Site www.score.org Get immediate access to thousands of pages of how-to articles, business templates, quizzes and online workshops from the SCORE Small Business Web Site. Ask SCORE Online offers 24/7 access to a mentor by email. SCORE Women’s Web Site www.score.org/women At the request of women entrepreneurs, SCORE launched new women’s resources with how-to and mompreneur articles, a sales forecast tool, monthly business checklist and specialized resources. Sue Hartman Sue Hartman sponsored the SCORE Women’s Web Site. She is a past SCORE board director and the founder and president of The Hartman Group in Rochester, N.Y. www.score.org 5 supporting disaster preparedness SCORE Provides Local Support Before & After Disaster Strikes 2 nationwide tours 20 cities in two years 1,200 people attend SCORE Helps Businesses Impacted by Disasters SCORE is dedicated to providing entrepreneurs with disaster preparation and recovery resources and training to protect and preserve a small business. Especially during hurricane season, SCORE provides special workshops and online resources. For two years, SCORE and HP have conducted a nationwide tour on disaster preparedness in 20 cities across the country. These one-day seminars include numerous experts on continuing your business, resuming business operations and preparing before a disaster strikes. More than 1,200 people got real insights and simple solutions for protecting core assets from storms, floods, fires, theft and other disasters. SCORE is an advocate for small businesses to get the resources they need to protect themselves before disaster strikes. SCORE helped local businesses rebuild after the midwest flooding in 2008. Cedar Rapids SCORE counselors volunteered at a business recovery center set up by the SBA to help small businesses. HP Disaster Preparedness Event More than 1,200 business owners got real-world advice and training at the SCORE and HP nationwide tour on disaster preparedness. “After the “1,000 year flood” of the Mississippi River, SCORE was asked to help at the SBA’s Business Disaster Recovery Center. For nine hours a day, six days a week, two or more SCORE counselors were there,” says Greg Tomsic, volunteer counselor with Cedar Rapids SCORE. “It’s going to take time to recover, but Cedar Rapids SCORE will be there to help.” Volunteers in states along the Mississippi River provided mentoring to hundreds of small businesses affected by flooding. After Hurricane Gustav, Gulf Coast SCORE volunteers helped small business owners apply for funding and make plans to re-open businesses. SCORE’s Web site, www.score.org, provides links to key disaster resources in Florida, Louisiana, Mississippi and Texas. 6 SCORE FY 2008 Annual Report volunteering in communities SCORE Volunteers Help Provide Opportunities for All Communities 46 percent women 26 percent minorities 11 percent veterans SCORE Serves Diverse Communities People with different backgrounds count on SCORE for trusted mentoring and advice. According to the 2008 Impact Study of SBA Entrepreneurial Resources, almost half of SCORE clients are women. Thirteen percent of SCORE clients are AfricanAmerican, and another six percent are Hispanic/Latino. Many SCORE volunteers are Vietnam, Korea and WWII veterans. Eleven percent of SCORE clients are veterans, with one percent servicedisabled. More than half of SCORE clients are between 35 and 54 years of age. Many SCORE chapters also work with local high schools and colleges to reach younger entrepreneurs. SCORE helps clients with a variety of business areas. Some of the most common topics include business planning, marketing, cash flow and loan packages. The most common types of businesses served by SCORE are in the service and retail categories, followed by consulting, manufacturing, construction and healthcare. SCORE volunteers are working or retired business owners, corporate executives and military leaders who share their wisdom and lessons learned in business. Many SCORE counselors have experience with how to cut costs, increase sales and handle an economic downturn. With thousands of these mentors at hundreds of locations nationwide, SCORE continues to help millions of entrepreneurs live their dreams of business success. SCORE’s highest volunteer honor was awarded to Sue Hartman of Rochester, N.Y., in 2008 for 10 years of volunteerism, board leadership, strategic guidance and financial support—including the SCORE Women’s Web Site. SCORE presents the PDQ Award to Lisa Baker and Michael Nordstrom of HP one , of the world’s largest IT companies. HP received this award for its outstanding corporate philanthropic support of SCORE business matchmaking and SCORE mentoring and training. The PDQ Award is named in honor of the company founded by Patty DeDominic— The PDQ Careers Group of Companies. Patty endowed the PDQ Award honoring corporate philanthropy for SCORE. www.score.org 7 small business mentoring National Speed Coaching Tour Reaches Out to Entrepreneurs 5 cities 300 SCORE mentors 2,000 business owners SCORE Road Tour Meets In-Business Needs The “Small Business Speed Coaching Test Drive” series, sponsored by American Express OPEN and SCORE, brought a fast-paced series of workshops and speed mentoring sessions to entrepreneurs. Experienced SCORE mentors offered one-on-one, mini-mentoring sessions with entrepreneurs. This nationwide program and workshop series helped introduce existing businesses to SCORE. They received help as the economy turned down with seminars on getting new customers, growing sales and managing operations efficiently. This innovative program provided each attendee with an appointment to meet a mentor. More than 30 tables were set up with scheduled appointments all day for a mentoring session on the top burning question or issue facing the entrepreneur. Small business owners talked to seasoned SCORE experts about immediate opportunities, financial and marketing concerns, and how to get capital to sustain their firms. Attendees also learned about local SCORE services and resources, with many signing up for additional counseling at SCORE office locations. Small business owners get business advice from SCORE counselors at the inaugural speed mentoring event in Orlando, Fla. Interactive workshops focused on areas that directly affect small business growth, including business planning, marketing and finances. The program was so popular that 15 additional national tour events will be held in 2009. It will expand to include small and mid-sized towns and cities. SCORE CEO Ken Yancey says, “SCORE is constantly innovating to meet entrepreneurs on their terms. We canvassed the country with a nationwide speed mentoring tour to introduce entrepreneurs to SCORE.” He adds, “This innovative program, sponsored by American Express Open, encouraged existing business owners to get a mentor to aid their business performance.” 8 SCORE FY 2008 Annual Report million dollar businesses SCORE Helps Jelly Belly Acquire Growth Capital Due Farina Tops $1 Million in Sales Thanks to SCORE Fabiana Rigamonti and Marina Rosin-Levine, owners of Due Farina Shoes & Accessories, achieved $1 million in sales and secured distribution in Nordstrom stores nationwide thanks to help from New York City SCORE. Their mentor, Harry Dannenberg, played a key role in reducing production costs by helping source manufacturers. Later, when the dollar fell in value, he helped them move quickly to find a factory to keep their product price competitive. “He also referred us to other SCORE counselors when we needed help with other issues, such as accounting and evaluating venture capital partnerships,” Marina says. Consultants you pay for will often just tell you want you want to know. Harry also tells us what we need to know. That’s made all the difference.” The Jelly Belly Candy Company, based in Fairfield, California, has estimated annual sales of $58.5 million and 650 employees. SCORE assisted the company with a turnaround, expansion and acquisition of capital for growth. In addition, a SCORE counselor, “Mr. McDaniel,” helped the company revamp the merchandising and costing system. Herm Rowland says, “I’ve told many other small business owners that they too can get the same kind of valuable advice by calling SCORE. But remember that SCORE won’t do the work for you. You must be willing to listen and follow through on your counselor’s recommendations.” He adds, “Everything SCORE promised came true thanks to Mr. McDaniel. SCORE is a wonderful resource for small businesses.” SSM Consulting Gets Multi-Million Dollar Contract with Marketing Advice from SCORE Don Stukes, owner of SSM Consulting Group, worked with a team of SCORE counselors to get start-up financing and secure a multi-million dollar contract. Orange County SCORE Counselor Dr. Jack ReVelle helped Don develop a business plan that resulted in a bank loan on the first try. SCORE Counselor Terri Carr met with him weekly to discuss marketing plans and how to implement and evaluate them for his management consulting firm. “Terri also recommended that I develop a more personal relationship with the local school district, as they figured strategically in my growth plans,” Don says. “When another opportunity to work for them arose, we submitted a proposal and were selected for a multi-million dollar contract.” Pictured (l-r): Don Stukes, his wife Lyda, and Los Angeles Mayor Antonio Villaraigosa Don adds, “SCORE has been a big help in making it all possible. I tell entrepreneurs to get SCORE involved early.” www.score.org 9 the SCORE Foundation financial report Supporting SCORE’s Mission of Mentoring for Entrepreneurial Success 12 projects funded 150 new donors in FY08 1,660 donors since 2004 Foundation Supports Small Business Outreach The SCORE Foundation was formed in 2004. The mission of the foundation is to support and leverage the work of SCORE by soliciting, investing and managing resources to support small business mentoring and training through SCORE. The foundation is a 501(c)(3) nonprofit organization with one employee and more than 200 volunteers in FY08. The foundation executive director reports to the CEO of the SCORE Association and The SCORE Foundation Board of Directors, which is responsible for foundation oversight. Even with this support, the educational programs, diversity outreach, online tools and training remain under-funded. With project needs in excess of $14 million, inflation eroding operating funds, and a grant reduction of $50,000 in 2008—SCORE struggles to sustain programs and expand into underserved markets and implement more robust online services. Individual and corporate donors sponsor innovative resources and programs. SCORE sought to provide added services to women entrepreneurs, but lacked the resources. An entrepreneur donated the funds to create that Web site. Corporate sponsors supported two national training tours in 2008 that assisted 3,000 entrepreneurs. And, corporate donors have sponsored educational guides that reached about 300,000 new and existing entrepreneurs in 2008. Fundraising Toolkit. More than 60 SCORE chapters received designated donations through The SCORE Foundation. Bank of America supported the Business Basics workbook in English and Spanish. The Office Depot Foundation supports the SCORE disaster preparedness Web section and American Express OPEN supports the SCORE Web site home page. Donors sponsored the popular SCORE eNews and SCORE Expert Answers eNewsletters. UPS, Visa and Concentric sponsored online workshops to help small businesses create success in a tightening economy. SCORE Board Director John Carden says, “Today, SCORE mentors are confronted with the unprecedented task of mentoring entrepreneurs during a deep recession. To provide training guides, online tools and outreach requires funding.” “Your charitable giving helps SCORE serve small businesses to preserve and create jobs. A charitable donation to SCORE brings a meaningful payback for our individual giving, because it protects American families, jobs and businesses,” says Carden, the former vice chair of Ernst & Young LLP . Foundation Supports Mentoring & Training In FY08, The SCORE Foundation secured program support for mentoring and training, including: the SCORE Web Site; Women Entrepreneurs Initiative; volunteer leader training conferences; and in-kind software donations. The foundation raised $1,035,333 in FY08 with $825,000 directly supporting SCORE programs. Two million dollars has been pledged through estate planning. The foundation also provided fundraising training to SCORE chapters, as well as The Chapter Foundation Contributions FY08 69% Unrestricted Income 30% Special Projects & Chapter Designated Gifts 1% Endowment Foundation Programs Support & Expenses FY08 74% Program Support 26% Fundraising Management & Expenses 10 SCORE FY 2008 Annual Report the SCORE Foundation financial report The SCORE Foundation Raises $1 Million in Fourth Year of Operations 25 percent individual donors 75 percent corporate donors $1,035,333 raised in FY08 Assets 2008 394,575 76,853 241,011 1,470 $713,909 2007 350,121 77,291 276,998 0 $704,410 FY08 SCORE Foundation Statement of Financial Position The SCORE Foundation Meets FY08 Goals The SCORE Foundation reached a major milestone in its fourth year, reaching $1 million raised for the second time. Corporate donors contributed 75 percent of the funds, with 25 percent given by individual donors. The SCORE Board of Directors supports the foundation with 100 percent making a donation. The SCORE Foundation is a charitable organization designed to further the mission of the SCORE Association in providing mentoring and training for small businesses. Cash and Cash Equivalents Certificates of Deposit Promises to Give: Net Prepaid Expenses Total Assets Liabilities Accounts Payable & Accrued Expenses Grants to SCORE Association Total Liabilities Total Net Assets Total Liabilities & Net Assets Net ssets A stricted Unre 9,348 250,000 $259,348 $454,561 $713,909 13,198 0 $13,198 $691,212 $704,410 FY08 SCORE Foundation Revenues Restricted Funds ...................... $297,499 General Fund Board Designated 106,630 116,255 $222,885 412,043 94,790 $506,833 177,169 7,210 $691,212 Unrestricted Funds................... $737,834 Total .....................................$1,035,333 Temporarily Restricted Permanently Restricted Total Net Assets 224,401 7,275 $454,561 www.score.org 11 the SCORE Foundation financial report The SCORE Foundation Financial Report The SCORE Foundation Operates to Build Support for SCORE and Fund a Sustainable Future for Mentoring & Training FY08 SCORE Foundation Revenues, Expenses and Net Assets Year Ended September 30, 2008, with Comparative Totals for 2007 Temporarily Restricted Permanently Restricted Total 2007 Unrestricted Total Revenue, Support and Other Changes Contributions Events and Special Projects Interest and Dividends $576,408 154,680 6,746 737,834 $90,446 206,988 297,434 $65 65 $666,919 361,668 6,746 1,035,333 $646,897 366,155 8,108 1,021,160 Net Assets Released from Restrictions Satisfaction of Restrictions Total Revenue and Other Support Expenses Salaries and Benefits Bad Debt Expense Bank Fees Printing and Supplies Special Events Postage Telephone Professional Fees Travel and Registration Donor Recognition Taxes and Licenses Software Licenses Prospect Research Program Support-Local Program Support-National 250,202 988,036 (250,202) 47,232 65 1,035,333 1,021,160 215,763 21,527 2,408 13,616 74,235 5,964 239 50,827 37,749 2,871 12,164 6,692 592 551,148 276,189 - - 215,763 21,527 2,408 13,616 74,235 5,964 239 50,827 37,749 2,871 12,164 6,692 592 551,148 276,189 143,362 1,460 25,601 15,479 8,319 29,765 29,963 3,967 7,423 1,644 8,523 294,652 1,600 Total Expenses Change in Net Assets Net Assets – Beginning of Year Net Assets – End of Year 1,271,984 (283,948) 506,833 $222,885 47,232 177,169 $224,401 65 7,210 $7,275 1,271,984 (236,651) 691,212 $454,561 571,758 449,402 241,810 $691,212 12 SCORE FY 2008 Annual Report the SCORE Association financial report SCORE Provides Mentoring & Training Through a National Network of Volunteers Funding Supports Nationwide SCORE Outreach The SCORE Association’s federal grant of $4.95 million provides primary support for SCORE’s mission of small business mentoring and training. SCORE CEO Ken Yancey leads program operations. SCORE has 389 offices nationwide, largely operated through the generosity of office hosts, with donated and shared office space at chambers of commerce and SBA district offices. The SCORE Foundation raises funds to aid SCORE’s mission and adds additional funding for special program efforts and new initiatives. The SCORE Association and The SCORE Foundation thank the generous individuals and organizations who believe in entrepreneurship. Your support of small business mentoring and training increases the success of entrepreneurs. Especially today, trusted mentors in turbulent times meet a real need in communities across America. Thank you. FY08 SCORE Association Statement of Financial Position Assets Cash and Cash Equivalents Receivable & Prepaid Expenses Total Assets Liabilities Accounts Payable Accrued Vacation Total Liabilities Total Net Assets Total Liabilities & Net Assets Net Assets Unrestricted Undesignated Board Designated Total Unrestricted Temporarily Restricted Total Net Assets (11,756) 1,900 ($9,856) 10,000 $144 4,996 4,236 $9,232 10,000 $19,232 439,798 73,227 $513,025 $144 $513,169 51,390 68,013 $119,403 $19,232 $138,635 2008 231,688 281,481 $513,169 2007 121,135 17,500 $138,635 FY08 SCORE Association Revenues, Expenses and Net Assets Total 2008 Total 2007 Revenue, Support and Other Changes Grant - Small Business Administration (SBA) Donated Office Space SCORE Foundation Grant Other Total Revenue and Other Support Expenses Chapter Expense Reimbursement Salaries and Fringe Benefits National Leadership Conferences Web Site Donated Office Space Professional Services Technology / EDMIS Board of Directors Expenses Communications and Publications Volunteer - Chapter Services and Travel Office Supplies, Postage and Equipment Moving Expenses Other Total Expenses Change in Net Assets Net Assets – Beginning of Year Net Assets – End of Year $4,950,000 127,725 250,000 209 $5,327,934 $1,968,709 1,558,542 593,733 436,204 127,725 46,810 103,812 136,759 144,743 131,677 64,007 0 34,301 $5,347,022 $(19,088) $19,232 $144 $4,886,140 128,915 1,600 916 $5,017,571 $2,004,918 1,520,193 591,226 241,171 128,915 111,709 78,287 71,014 124,566 131,719 106,739 20,000 32,175 $5,162,632 $(145,061) $164,293 $19,232 FY08 SCORE Association & Chapter Revenues Federal Grant ........................ $4,950,000 Foundation Support ................. $276,189 Chapter Revenue .................. $3,923,429 Total .....................................$9,149,618 www.score.org 13 SCORE board of directors Abood served as an executive at Marriott International for 32 years. He retired in 2000 as senior vice president for business development. Abood joined Atlanta SCORE in 2001. He served as vice chair for marketing and later chapter chair. In 2004, he was named district director overseeing SCORE offices in Georgia. Baumann, a CPA, has more than 30 years of experience in public accounting with PricewaterhouseCoopers, auditing some of the largest U.S. and international banking, insurance and other financial services companies. Since 2006, he has served in Washington, D.C. as a director of regulatory review and compliance in the accounting sector. Carden is the retired vice chair of Ernst & Young, LLP, after serving for more than 30 years. Carden joined SCORE in 1997 and served as chapter vice-chair and chair. He is the chair of Point Clear Investments, Inc., a board director for Turner Supply Company, and owner of four Toledo, Ohio, retail establishments. Fraser is chair of the Diversity Executive Search Practice and Managing Director of Diversified Search Ray & Berndtson. She is a nationally recognized speaker and author. Edie is active on several community boards. She is a strong advocate for women, a member of the Committee of 200 and founder of the Business Women’s Network. Frommel is a financial management professional. His career in the broadcasting industry spanned more than 30 years in Memphis. He currently works with the firm Cremerius Rice Financial Advisors in Memphis. During his tenure with SCORE, Frommel served as chapter chair, then assistant district director, at Memphis SCORE. James Frommel – Memphis, Tenn. Edie Fraser – Washington, D.C. John Carden – Point Clear, Ala. Fred Abood – Marietta, Ga. Dr. Harris is president and CEO of Vesalius Ventures, Inc., a venture capital accelerator. Dr. Harris previously served at NASA, where he conducted medical research on adapting to space travel. He is a veteran astronaut, logging nearly 440 hours and traveling more than 7 million miles in space. Jensen began his career in the U.S. Air Force as a computer programmer and systems analyst. Jensen has worked in computer and marketing fields for RCA Instructional Systems, Bechtel Group and Techpoint. He joined San Jose SCORE in 1995 and has served as a SCORE district director and chapter chair. Johanneson has owned operated and sold a chain of Pick’n Save Supermarkets in Appleton, Wis. and other supermarkets in Colo. She now owns 19 Mystic Mountain LLC, a real estate investment company. She has consulted with several Fortune 500 companies. In 2007, Dedra received the “National Champion of Women Business” award from the SBA. Douglas Kindred, Board Chair – Gettysburg, Pa. Bernard Harris – Houston, Texas Gerald R. Jensen – Los Altos, Calif. Martin F. Baumann – Tampa, Fla. Dedra Johanneson – Scottsdale, Ariz. Kindred holds an Advanced Executive MBA from Claremont Graduate University in Claremont, Calif. He earned his MBA from Golden Gate University in San Francisco. Earlier, he earned a bachelor’s degree in accounting from Pepperdine University in Los Angeles. Kindred acquired, operated and grew a moving and storage company that he successfully sold. Previously he worked as CFO and CEO for a subsidiary of Transamerica Corporation. Barbara Lippard, Treasurer – Berkeley, Calif. Lippard retired after serving as investment executive of Time, Inc.’s Venture Capital Group. She also served as vice president, director of corporate development, for Selling Areas-Marketing Inc. (SAMI), a division of Time, Inc. She joined SCORE in 1997 where she served as chapter chair and district director, overseeing SCORE offices in the San Francisco Bay. 14 SCORE FY 2008 Annual Report SCORE board of directors Malcolm is a leading national marketing executive. He serves as vice president of marketing for AAA Auto Club South. Prior to that, he was vice president of membership for Sam’s Club, where he also led national marketing programs. Earlier, Malcolm worked as a brand manager for Walt Disney Parks and Resorts, Inc. in Orlando. J. Michael Mendez, Vice Chair – Santa Fe, N.M. Philip Malcolm III – Tampa, Fla. Shelton had a successful career in the energy industry with Sunoco, Inc. then with USEC Inc. At USEC, he was senior vice president and chief financial officer where he led its privatization via an IPO. He is an SEC board financial expert. Shelton was a SCORE chapter chair, then district director, in Washington, D.C. Robert St. Angelo, Secretary – Barnegat, N.J. Hal Shelton – North Bethesda, Md. Mendez retired after a 33-year career with Southern California Edison Company (SCE). During his 10 years as a corporate officer, Mendez held the positions of vice president of human resources, labor relations and regional leadership. After moving to Santa Fe, Mendez joined SCORE. He consults on human resources and labor relations issues. Ogata holds an MBA from Duke University and serves as the district director overseeing SCORE offices in Hawaii. He is the president of 3-K Financial Corporation in Nev., a private investment and consulting firm. Prior to that, he was chief financial officer and treasurer of the National Education Corporation in Irvine, Calif. Pelka served for more than 22 years as CEO of Associates Commercial Corp., a worldwide commercial lessor and lender with more than 12 divisions. Previously, he was the central region manager for General Electric Capital. He was a SCORE chapter chair for Chicago SCORE, then assistant district director in Ill. Sabelhaus is a successful entrepreneur with more than 25 years of business and corporate experience. She is a partner of Superior Financial Group in Walnut Creek, Calif. She dedicates her time to community fundraising and women’s business issues. Sabelhaus also served as deputy administrator of the SBA, where she was responsible for overseeing policy development and program supervision. Melanie Sabelhaus – Owings Mills, Md. Larry Pelka – Chicago, Ill. Keith Ogata – Honolulu, Hawaii St. Angelo retired in 1993 after a 39year career with Merrill Lynch, where he was senior regional sales and marketing representative of the Global Services division. St. Angelo is a U.S. Air Force veteran. He joined SCORE in 1995 and has served as district director overseeing all SCORE offices in New Jersey. Tam is a co-visioneer of HealthWalk, a healthcare clinic in Carlsbad, Calif. She has served as CEO of Aveda. She was president of Reebok Apparel and Retail Group, and vice president of Nike. In 1994, Tam was awarded The Reebok Human Rights Award. She is the founder and executive director of the Us Foundation. Tinker is an international computer technology executive with more than 20 years of business and financial leadership. Tinker is currently with Palm. Previously, he served at Intuit for 10 years, most recently as the director of corporate alliances. Before joining Intuit, Tinker spent 12 years at Apple Computer. Wood is chair and CEO of Don Wood Automotive, the largest auto dealer group in southeast Ohio with five regional dealerships. Earlier, he served as a vice president at Florida National Bank, where he focused on consumer lending. He actively supports the community and is trustee and chair of the board at the University of Rio Grande. Donald Wood – Athens, Ohio Fred Tinker – Los Altos, Calif. Marilyn Tam – Santa Barbara, Calif. www.score.org 15 SCORE supporters Generous Donors Believe in America’s Entrepreneurial Spirit & Mentoring Success Through Volunteerism SBA Resource Partner 52 Corporate Supporters FY08 438 Individual Contributions FY08 SCORE Chairman’s Circle FY08 donors who contributed $1,000 or more to The SCORE Foundation. Anonymous* Harland Andrews Paul Andris Bob Bailey James W. Barber Jamie Borromeo Louis Campanelli* John & Sivewright Carden* Esther Coopersmith Patty DeDominic* Mark & Stephany Dobosz* Steve Frankis Edie Fraser Roz Goldmacher* Daniel Guarino Claude Hagelberg* Catharina Maria Hamilton Doug Harris Dr. Bernard Harris Sue Hartman* William E. Huff Dennis H. Jones Pamela Kaul Doug and Bobbi Kindred* Paul and Edie Kopelcheck Leonard Lafrance Ed Lichtman Barbara Lippard* Richard P & Mary Elaina Mader . Mark Maguire John Marcus *Also a Titley Society member John & Edith Titley Society Pledges as bequests in wills and estate planning. Titley Society pledges do not appear on the statement of income. Anonymous (3) Herb Ausderau Christine Banning Patrice Barnes Sandy Britt Nancy Brown Duncan Brown Lou Campanelli John Carden Sivewright Carden Marjorie Christiansen Gene Cowen Phylllis Cowen Martha Davidson Richard Davidson Rose D’Alessandro Patty DeDominic Mark Dobosz Stephany Dobosz Niels H. Fischer Kasey Freesland Kristine Gabel Roz Goldmacher Claude Hagelberg Dick Hannis Sue Hartman Jerry Jensen Devin Jopp Doug Kindred Bobbi Kindred Paul Kopelcheck Edie Kopelcheck Richard F. Leslie Barbara Lippard Lynne-Anne Lombardi Ronnie McClure For a complete list of donors, visit the foundation Web site at http://www.scorefoundation.org. If you have a correction for the donor list, please email contactus@score.org. Mike Mendez Stephanie Mendez Billie Moreland Cynthia Mottle Ellwyn & Marjorie Nellis Gregory Nelson Keith Ogata Betty Otte Roger Otte Norman Paige Donald Patience Dick Priest Karen Priest James Pyles Vernease Pyles Alvin Roselin Arnold Sandness Alan Simon Mel Spiegelman Bob St. Angelo Dorothy St. Angelo Marilyn Tam Edith Titley John Titley Carl Trautmann Joe Wollenberger Alicia Yancey Kenneth Yancey Chuck Zellner Jim Martin Mike & Stephanie Mendez* William Needham Gregory S. Nelson & Kristine Gabel* Keith Ogata* Betty & Roger Otte* Pat Parker Lawrence J. Pelka Dick & Karen Priest* Diane D. Roehrig Gary Rosenbloom Melanie Sabelhaus Charles A. Sawicki Anthony Scaramucci Rubin Sharpe Hal & Gail Shelton Robert Shephard Alan Simon* Robert Stollenwerk Harold Swanner Frederic W. Thomas Fred Tinker Carl Trautmann* Sandy Butler Weil Joseph Wollenberger* Alicia & W. Kenneth Yancey, Jr.* Chuck Zellner* 16 SCORE FY 2008 Annual Report SCORE supporters SCORE Alliances Commit Resources to Aid Small Business Success Leading national corporations support SCORE “Counselors to America’s Small Business” and its mission to mentor, educate and provide lifelong learning for entrepreneurs. SCORE is a resource partner with the U.S. Small Business Administration (SBA). In FY08, SCORE served as the national co-sponsor of Small Business Week with the SBA. SCORE forms alliances with leading companies and organizations to expand small business outreach, services and resources in communities nationwide. “HP has partnered with SCORE to help small businesses get access to government and corporate contracts, plan for disaster recovery, and offer seminars on how to remain a strong business even in difficult times. SCORE is a storehouse of knowledge, knowhow and expertise on how to succeed in business. Every entrepreneur in America should have a SCORE mentor on his or her team. SCORE is an American invention—smart, entrepreneurial and focused on the future and future success of every small business in America.” Michael Nordstrom, HP Manager of Business Marketing U.S. Small Business Administration Corporate Sponsors AARP Financial AmerAssist American Express OPEN AT&T Bank of America The Company Corporation Concentric Constant Contact Corporate Turnaround Dolans.com E-Myth Worldwide FranNet Google HP Image Direct MyBiz Homepage National Business Association (NBA) NetBooks Office Depot Foundation Palo Alto Software Real Easy Books Sage Software Sam’s Club The SCORE Foundation The UPS Store U.S. Small Business Administration VendorSeek.com Verio Verizon Visa USA *This list includes both donors making a financial contribution and those who provided in-kind product/service support to SCORE. In-Kind Supporters AllBusiness American Management Association AOL/Small Business AOL/Netscape Assets for Independence Easi Media Entrepreneur Magazine FedEx Hugh O’Brian Youth Leadership Inc. 5000 Intuit, Inc. My Own Business PR Newswire Reni Publishing SBTV Small Business School SmartDraw Soundview Executive Book Summaries Tammy Says The Veterans Corporation The Wall Street Journal Online Welcome Business USA www.score.org 17 www.score.org 1175 Herndon Parkway, Suite 900, Herndon, VA 20170 T: 1-800/634-0245 F: 703/487-3066 403 3rd Street, SW, 6th Floor, Washington, DC 20024 SCORE services are provided without regard to race, color, national origin, gender, age and disability. Persons with disabilities may request reasonable accommodations with a two-week advance notice. The material in this publication is based on work supported by the U.S. Small Business Administration (SBA) under cooperative agreement SBAHQ09-S-0001. Any opinions, findings and conclusions or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the U.S. Small Business Administration. Printed using recycled materials