In order to run a 330,000 member organization that does all the stuff we do, we have to have a management company. About 12 years ago we were with one of the large management companies. The service was awful and extremely expensive. So, we went with a smaller, boutique organization, Christianson & Company. They are a for-profit organization. I literally have no problem with that. I also work for a for-profit organization. They make a profit off our organization. Same as the other management company. Same as many, many other not-for profit organizations do. We're not unique in this relationship. It's very common.
Currently, the PASS organization currently has 94% of our income from a single source, Summit. The Board and C&C have been working on changing that and expanding our sources of revenue. Sadly, Covid hit us extremely hard. See, our income from that one source is distributed across the year. We make money all year long from registrations and then there's a big bang in the last two weeks before the event. Registrations disappeared with the lock-downs. We had no income. Now, we have reserves. We go through an audit each year with a third party auditing organization, and they assured us that we had the right size reserves for a not-for-profit organization. Also, by the way, our annual audit, with a 3rd party agency (and yes, all this is published on the web site, you can look it up), also checks on how much profit C&C is making. It's all very within standard norms. We, and they, pass the audit every year (so far, we'll see what it looks like this year). We were facing using up all our reserves.
C&C decided, all on their own, to take pay cuts rather than burn through our reserves. They keep the lights on at PASS year round. Now, they are literally saving the organization. If we were still with the monster management company, I'm pretty sure we'd be out of business, either right now, or shortly. I think they're heroes.
Not only have they managed to get us out of our live event in Houston with as minimal a set of losses as possible, but they're switching us over to a virtual event that's going to be as close to a Summit experience as we can make it. At the same time, they've helped switch us to virtual SQLSaturday events, kept up all the advertising, online meetings, more and more. They meet 8-15 times a week with Microsoft to help get us maintain the relationship there.
And they're doing it all for less money.
We can certainly discuss what, how, where, when we do things with the management company. And yes, we MUST diversify our income. But I have to stand by C&C and very vocally let you know that they are doing our organization a great service and, maybe I'm alone, I truly appreciate it.