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State of the Organization Statement
CFA Annual meting
June 26, 2009

Edward R. Murrow once stated, "the obscure takes time to see, but the obvious takes longer." This aptly applies to the frustrations we experienced this past year trying to overcome the financial downward trends throughout the United States and the World.

Three years ago, the CFA Board authorized a forensic audit of our finances. We thought we had identified weak areas in cash flow, and had a good start on bringing in additional income to overcome the downward trend in registrations. We did not want to add to the fees and dues breeders and clubs already pay - history has always shown an inverse relationship in higher fees resulting in lower income.

This year, we again are expecting increasing income from our licensing and branding efforts. The 4Kids/4Sight licensing and brand company both we and AKC use briefed the CFA Board of Directors yesterday. Branding CFA was a smart move; we get increasing income from the royalties and we get increased visibility, not only throughout the US, but internationally as well. Our products are represented in 72 countries.

However, we also had to make personnel cuts that were very difficult to do. We had to make tough business decisions, and tough business decisions are not always popular.

Kathy Calhoun will brief you further on finances and what we have done for the current fiscal year to stop losses and gain back ground, even in these tough times.

Overall, this past year can be described as the "Good, Bad and Ugly". Let me quickly address the "Ugly": I have judged overseas for two other associations this year. In my heart and in my soul I can honestly say: CFA has no ugly cats. (However I'll let you know aside if you want to find them.) We are truly envied for our quality of cats, judges, and organization - and that really is a "Good".

Unfortunately, the laws of nature decree we must have an opposite reaction for every action. And unfortunately, we have the "Bad" we have to address. We all are aware of the financial challenges we're facing. And as I stated before, Kathy will address this in detail. You all will receive a copy of our end-of-year audit. If you have any questions, do not be reticent to ask specific questions of any board member.

There have been other negative issues that have impacted our organization. Cyber slander rears its ugly head on occasion on various mail lists, and again I caution that this is a crime. Specifically, I can state that no officer, director at large, regional director, or any of the CFA staff deserves to be treated or spoken about in such a nasty, rude manner as we have seen in the past two years. Same goes for deliberate misinformation cavalierly bandied about which only ends up hurting this organization. Case in point: commissions paid to employees. I have recently heard that one employee gets up to 50 percent commission. Au contraire, as we say in Leon Springs, Texas. Per the contract, 12 percent of net new sales or revenue or sponsorships and continuing income from those sales up to an amount of $150,000 annual compensation. After $150,000 has been reached, the commission will be based on 18 percent of the net new sales or revenue or sponsorships.

Basically stated, of every $100 CFA gets in new sales/revenue/sponsorships, CFA keeps $88, with $12 being paid in commission. Or, if CFA is truly blessed with new income, sponsorships, then of every $100 CFA gets, we keep $82.00 with $18 being paid in commission. For an individual to earn a $100,000 in salary/commission in one year, CFA would have netted $440,000.

The economy has hit our sponsors, too. Every dollar we receive for our shows and programs is hard fought. We have to prove a return of investment to these sponsors in order to receive further funding.

We had sponsorship for our Invitational shows until a small group of exhibitors essentially slandered the sponsor. CFA lost that opportunity. We used to receive $48,000 for our national awards from yet another sponsor. Again, negativity from a small group of exhibitors lost that sponsorship for us. And I am dismayed to report it has happened again. CFA has lost yet a another breed awards program due to what can only be called an overinflated sense of entitlement from a few exhibitors and those who did not think contracts they signed really had to be honored.

Negative compounded upon negative has never produced anything positive.

Enough of that. On to the "Good".

Our CFA IAMS Cat Championship in New York City made money for the 3rd year in a row. However, Madison Square Garden had the audacity to renovate the very hall we used, effectively cutting it in half. We had identified other possibilities for show halls. However, IAMS wants a top tier, a top in name recognition just like Madison Square Garden has. Why? IAMS gets more media hits from our MSG show than any other event, including the Eukanuba Championship of Dogs. Just when things started looking dark, well, AKC called us. What has resulted is Meet the Breeds, a cooperative event between CFA and AKC to be held at the Javits Center in New York City. It is the first ever event of its type and the media has already started. David White will brief you further on this event. And yes, IAMS is with us on this event, too.

We will have the CFA International Show again this year. My co-chairs, Mark Hannon and Debbie Kusy, are micromanaging every penny on this show. You will be briefed in a bit by the show manager, Teresa Keiger. These media events are vital to CFA. You may ask, how will this help me sell pet kittens? We need the name recognition, we need brand recognition. We need the public to care and value pedigreed cats. And we will not get this unless we are in the public's eye, educating the public about cats in general and pedigreed cats specifically. And unless we can continue to fight legislation at the state and national levels, well then we won't have to worry about selling pet kittens because we won't be breeding cats. We had some losses this year but some great victories at state levels, too. George Eigenhauser will be giving you an overview of legislation.

Many of you know CFA is a member of a world wide organization called the World Cat Congress. In fact, CFA is a charter member of the WCC. Besides CFA, members include the Australian Cat Federation, the Coordinating Council of the Cat Fancy, New Zealand Cat Federation, FIFe, TICA, World Cat Federation, Southern Africa Cat Council, and the Governing Council of the Cat Fancy. At this year's meeting in Arnhem, Holland, the WCC took a historical step by adopting as a mission the fight against restrictive legislation in member countries. I also met with the new president of TICA, Vicki Fisher, who wants to also step up TICA's involvement with CFA in fighting restrictive legislation. As an aside, I was reelected for a third two-year term as president of the WCC.

Recently on one of the internet cat lists, posters kept talking about CFA needs to do this, CFA needs to promote that, CFA, etc. As I see it, CFA is the officers and directors of the CFA board, CFA is our Central Office staff, CFA is each delegate seated at this meeting, CFA is each member of each member club of CFA, CFA is each breeder and exhibitor and CFA is each and every person who uses CFA service and CFA is those who will be joining us in the future.

We have tremendous wealth in CFA - we have a wealth of talent and ability. Our greatest assets are our people, and of course, our cats. With positive planning, positive action, and positive attitudes, there is nothing that we, CFA, cannot do.

Thank you.

Pam DelaBar
CFA President

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