NFPA Journal - Summer 2021 - 86

Treasurer's Report 2020
In accordance with
general responsibilities, the
following NFPA Treasurer's
Annual Report is issued to
Association members.

	
	
Statements of Financial Position
Assets
Cash and cash equivalents	
Inventory, accounts receivable, and other assets	
Investments	
Real estate investments, property, and equipment	
Total assets	

AS CHALLENGING AS 2020 HAS BEEN,
WE CONTINUE TO EXECUTE ON OUR FINANCIAL GOALS.
Despite a year in which organizations were impacted in numerous ways by COVID, NFPA rose to the challenge to meet the
ever-changing demands of stakeholders. While the pandemic
forced us to pivot in some areas, we continued to work toward
our long-term goals by moving forward with our transformation
to a more global, digitally connected organization.
As we learned to operate in the " new normal, " we ended 2020
in an overall solid financial position, with total assets of $380M
and net assets of $326M, both up from 2019. Revenues dropped
over 16 percent in 2020, to $70M, with the biggest impact to our
publications revenue. Despite aggressive expense management
efforts, our operating deficit grew to $2.5M in 2020. Early in
the pandemic, we were forced to shut down our warehouse and
shipping capabilities, and we cancelled our annual Conference &
Expo for the first time in our history.
Even so, we took important steps toward our global, digitally
connected transformation. We named new representatives
in the Middle East and Latin America, and we launched NFPA
LiNK™, our new custom, on-demand code knowledge tool. The
launch of NFPA LiNK is key to our success, as we continue to be
under tremendous pressure from the historic challenges of delivering information in physical and traditional digital formats.
In addition to these accomplishments, our diversified asset
allocation strategy provided an 8 percent return on investments
as markets rebounded from March lows. That growth in our
investment portfolio allowed us to invest in our long-term
initiatives, continue to maintain a healthy funding status of our
existing pension plan, and add to our general reserves to help
ensure that the association maintains a solid financial base.
As we celebrate our 125th anniversary, we are financially
sound, forward focused, and transforming the way we develop
and deliver information and knowledge to serve those who rely
on us to make the world a safer place.

2020 u
REVENUE

FROM ROGER MONTEMBEAULT,
TREASURER

$'000s	$'000s
2020	2019

$19,358	
$17,613
24,613	
27,062
284,767	265,033
51,554	
49,293
380,292	
359,001

Liabilities and net assets
Accounts payable and accrued expenses	
Pension liability	
Deferred revenues	
Payback Protection Program Plan	
Total liabilities	
Total net assets	
Total liabilities and net assets	

11,065	
12,294
26,278	
20,828
12,481	
14,305
4,819	
-
54,643	
47,427
325,649	
311,574
$380,292	$359,001

Statements of Activities
Revenue
	Publications	
	Membership	
	 Training and Other	
Total revenue	
Expenses	
Operating deficit	
Real estate investments surplus	
Pension liability adjustment	
Investment return	
Change in net assets	
Net assets as of beginning of year	
Net assets as of end of year	

$48,984	 $54,133
11,487	 14,503
9,650	
15,105
70,121	
83,741
(72,672)	
(85,448)
(2,551)	
(1,707)
837	
593
(6,294)	
(5,217)
22,083	
33,858
14,075	
27,527
311,574	
284,047
$325,649	$311,574

Statements of Cash Flows
Cash flows from operating activities	
Cash flows from investing activities	
Cash flows from financing activities	
Net increase in cash and cash equivalents	
Cash and cash equivalents as of beginning of year	
Cash and cash equivalents as of end of year	

$6,697	
(9,771)	
4,819	
1,745	
17,613	
$19,358	

$952
2,954
-
3,906
13,707
$17,613

17%

Memberships

70%

10%

Publications

Training

2%

Contracts

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NFPA Journal - Summer 2021

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