The following summary is from the financial statements of AARP Global Network for the year ending December 31, 2007.
Revenue
Our total operating revenue in 2007, our first full year of operations, was $710,000. Nearly 85 percent of total revenues was derived from membership dues. The remaining 15 percent was from interest income.
Expenses
Our expenses totaled $1.79 million in 2007. Approximately $750,000 (42 percent of overall expenses) was compensation for permanent staff and temporary labor. An additional $400,000 (22 percent) was for outside professional services to support our operations. We continued to make investments in member-prospecting initiatives, including the AARP Global Network Workshop held in The Netherlands.
Approximately $230,000 (13 percent) of the total operating expenses was for payments to AARP for ongoing general and administrative expenses, including rent, finance, information technology, human resources and legal support services.
We closed the year with a net asset contribution of negative $1.07 million, compared to the negative $540,000 in 2006, which represented operations for June through December 2006. We closed the year with an unrestricted net asset position of $1.1 million compared to $2.2 million at the end of 2006. The significant decrease in our net asset position in 2007 reflects the Network’s start-up phase as well as investment in future growth. We anticipate the same will be true for 2008.
The complete AARP Global Network 2007 unaudited financial statements are available on the internet at www.aarpglobalnetwork.org/annualreport2007.
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