ACCE Survey Definitions: Glossary of Terms to be used in Benchmarking

This glossary was developed for the chamber profession by members of the ACCE Board of Directors as well as CFO's serving on a benchmarking task force, with significant input by the Membership Development Division advisory board.

ASSETS: CURRENT are those assets that are expected to be realized in cash during a specified fiscal year. Such assets include cash, accounts receivable and money due usually within one year, short-term investments, US government bonds, inventories, and prepaid expenses.

ASSETS: TOTAL are all assets (reserved and unreserved) as reported on the financial balance sheet, also called statement of financial position.

AUDITED FINANCIAL STATEMENTS are organization financial statements which have been prepared and certified by a Certified Public Accountant (the auditor). In the U.S., the auditor certifies that the financial statements meet the requirements of the U.S. Generally Accepted Accounting Practices (GAAP).

BUSINESSES IN THE SERVICE AREA is the number of businesses physically located in a chamber’s service area. Chamber use a variety of sources to determine this number, including the number of business licenses issued by the city(ies) or county(ies) in their service area, or “private non-farm establishments” as counted by the US Census Bureau, (http://quickfacts.census.gov/qfd/), for example.

CHAMBER SERVICE AREA is the geographic area a chamber either actively recruits members from or provides service to. Chambers use a variety of sources to define their service area, including city, county, MSA, or other political lines. Data sources include the U.S. Census Bureau (http://quickfacts.census.gov/qfd/).

DUES SCHEDULE is the published rate schedule for becoming a member of the organization.

DRAW DOWN is depleting reserves by spending or consumption.

DIRECT COSTS are those costs that can be identified specifically with a particular program, project, or service and that can be directly assigned to such activity relatively easily with a high degree of accuracy. In this particular definition, direct costs do not include personnel costs or costs associated with overhead (rent, utilities, etc.)

EMPLOYEE: AVERAGE TENURE is the average number of years the current employees have worked at the organization. It is calculated by adding the total number of years each current employee has worked for the organization, then divide by the number of current employees. As an example, Susie has been employed 5 years, Tom has been employed 15 years and Sally has been employed 2.5 years. (5 + 15 + 2.5) divided by 3 = 7.5 average employee tenure.

EMPLOYEE TURNOVER RATE is the percentage of employees who left the organization during the fiscal year ending in 2007. As an example, if you have 25 employees at the end of fiscal year 2006, and 22 of the same employees are still employed at the end of fiscal year 2007 calculate: (25 – 22) divided by 25 = 12% employee turnover rate.

EXPENSE: MARKETING/COMMUNICATIONS is the total direct cost of marketing and advertising the organization and its efforts. Includes ads, brochures, videos, radio spots, TV commercials, market research, PR Campaigns, website maintenance, newsletters, magazines, promotional emails etc. Does NOT include personnel expense in this area. Does not include expenses supporting restricted income generators, i.e. some contracts or grants.

EXPENSE: CONVENTION AND VISITORS BUREAU (CVB) is the total direct cost of for an entity or division that specializes in developing conventions, meetings, conferences and visitations to a city, county or region.

EXPENSE: ECONOMIC DEVELOPMENT is the total direct cost during the fiscal year ending in 2007 of recruiting new businesses.

EXPENSE: EVENT is the total direct cost during the fiscal year ending in 2007 for the sponsorship or participation in a chamber sponsored meeting, breakfast, luncheon, dinner, party or other get together.

EXPENSE: MEMBERSHIP is the total direct cost during the fiscal year ending in 2007 for retaining current and recruiting new members.

EXPENSE: OCCUPANCY is the total expense for the fiscal year ending in 2007 for occupying office space including rent or mortgage, depreciation, gas, electric, water and sewer expenses. Does not include expenses supporting restricted income generators, i.e. some contracts or grants.

EXPENSE: OTHER is the total expense for the fiscal year ending in 2007 that was NOT included in this survey as revenue from dues, campaign, events, program/publication, affinity, contracts or grants. This may include interest from investments, rental income, etc.

EXPENSE: PUBLIC POLICY is the total expense for the fiscal year ending in 2007 for all initiatives that are funded to influence the government action or inaction, decisions and non-decisions.

EXPENSE: TOTAL BENEFITS is non-wage compensation expenses for the fiscal year ending in 2007 provided to employees, such as group insurance, retirement benefits, day care, tuition reimbursement, and specialized benefits. Does not include expenses supporting restricted income generators, i.e. some contracts or grants.

EXPENSE: TOTAL WAGES is all personnel wages for the fiscal year ending in 2007 including salary, bonuses, and payroll taxes. Not including insurance, retirement training. Does not include expenses supporting restricted income generators, i.e. some contracts or grants.

EXPENSE: TOTAL ANNUAL is the total amount used during the fiscal year ending in 2007 that directly supported the day-to-day operations such as personnel, training, programs, products, promotions, maintenance, office supplies, depreciation, lease or mortgage payments, utilities, etc. This total should be on your 2007 year-end income and expense statement, also called the statement of activities. Does not include expenses supporting restricted income generators, i.e. some contracts or grants.

FULL-TIME EQUIVALENT (FTE) represents the total staff size of the organization for full-time and part-time staff. Calculated by totaling the number of hours that all part-time employees work for the year and divide it by the number of hours that a full-time employee works. Then add that number to the number of full-time employees. For example, a organization has 7 full-time employees working a 40-hour week and 3 part-time employees working a 20-hour week. (3 x 20) divided by 40 = 1.5.  Adding 7 full-time + 1.5 part-time = 8.5 FTE.

LIABILITIES: CURRENT are liabilities to be paid within a specified fiscal year.

LIABILITIES: TOTAL are all liabilities reported on the balance sheet, also called the statement of financial position.

MARKET PENETRATION RATE is the number of chamber members divided by the total number of businesses in the service area.

MEMBERSHIP is the total number or dollars of member accounts at the end of the specified fiscal year. One company = one member regardless of the number of branches, locations, or associate members affiliated with the parent company.

MEMBER RETENTION RATE is the percentage of members who maintained their membership with the organization during a specified completed fiscal year. It is calculated as:

• Number of membership accounts at the end of the previous fiscal year minus the number of cancellations at year end, divided by the number of membership accounts at the end of the previous fiscal year.
• For example, number of 2006 membership accounts minus number of cancellations in 2007, divided by the number of 2006 membership accounts. To calculate dollars retained substitute dollar value of membership accounts for number of membership accounts and dollar value of dropped accounts for number of cancellations. 

MEMBERSHIPS: CANCELED is the number of canceled (for any reason – out of business, moved out of the area, etc.) member accounts at the end of a specified fiscal year.

MEMBERSHIPS: NEW is the number of member accounts that joined the organization in the specified fiscal year.

NET ASSETS i.e. NET WORTH is calculated by subtracting total liabilities from total assets as reported on the financial balance sheet, also called statement of financial position.

NET GAIN/LOSS OF MEMBERS is the number of new members minus the number of canceled members in a specified completed fiscal year.

NET GAIN/LOSS OF MEMBERS: 5-YEAR AVERAGE is the number of new members minus the number of canceled members during fiscal years 2002, 2003, 2004, 2005 and 2006. To calculate, add the net gain/loss of members for each of the five fiscal years, then divide by five.

NET INCOME: TOTAL is the difference between total organization revenue and total organization expenses for the fiscal year ending in 2007. Also called net profit or change in net assets.

REVENUE: AFFINITY is money or in-kind service, recognized in the fiscal year ending in 2007 by the organization for all programs and products sold through an affinity relationship with an outside vendor, i.e. insurance, maps, coffee table books, etc.

REVENUE: CAMPAIGN ANNUAL RECOGNIZED is the annual un-restricted amount recognized from a single or multi-year fundraising campaign as 2007 un-restricted revenue on the income/expense statement, also called financial statement of activities.

REVENUE: CONTRACT/GRANT is the revenue recognized through contracts or grants during the fiscal year ending in 2007 from outside entities which require the organization to perform specific services, for example, industrial recruitment, tourism development, downtown development, festival promotion, etc. It does NOT include economic development contracts, public policy grants or organization revenue from projects and programs performed by outside vendors, for example, map or directory publishing, seminar promotion or affinity programs.

REVENUE: CONVENTION AND VISITORS BUREAU (CVB) is the money or in-kind service recognized during the fiscal year ending in 2007 by the organization for an entity or division that specializes in developing conventions, meetings, conferences and visitations to a city, county or region.

REVENUE: ECONOMIC DEVELOPMENT is the money or in-kind service recognized during the fiscal year ending in 2007 by the organization for recruiting new businesses.

REVENUE: EVENT is the money or in-kind service recognized during the fiscal year ending in 2007 by the organization for the sponsorship or participation in a chamber sponsored meeting, breakfast, luncheon, dinner, party or other get together.

REVENUE: OTHER is the money or in-kind service recognized in the fiscal year ending in 2007 by the organization that was NOT included in this survey as revenue from dues, campaign, events, program/publication, affinity, contracts or grants. This may include interest from investments, rental income, etc.

REVENUE: PUBLIC POLICY is the money or in-kind service recognized during the fiscal year ending in 2007 by the organization for all initiatives that are funded to influence the government action or inaction, decisions and non-decisions.

REVENUE: RENTAL INCOME is the money or in-kind service recognized during the fiscal year ending in 2007 by the organization for all rental income including advance rental payments, late payments, and current payments. Payments received for lease cancellation and forfeited security deposits are rental income the year received or forfeited.

REVENUE: WEB CONTRACTS is the money or in-kind service recognized during the fiscal year ending in 2007 by the organization for all website income including hosting contracts, website development and design fees.

REVENUE: TOTAL NON-DUES UNRESTRICTED is the total money or in-kind service, received in the fiscal year ending in 2007 which is not restricted for use by legal or contractual requirements and may be used for any purpose. 

REVENUE: TOTAL NON DUES RESTRICTED is the total money, received in the fiscal year ending in 2007 which is restricted by contracts, laws or regulations or parties such as grantors, contributors, creditors (through debt covenants).

REVENUE: NON DUES UNRESTRICTED is money or in-kind service, received in the fiscal year ending in 2007 which is not restricted for use by legal or contractual requirements and may be used for any purpose. 

REVENUE: NON DUES RESTRICTED is money, received in the fiscal year ending in 2007 which is restricted by contracts, laws or regulations or parties such as grantors, contributors, creditors (through debt covenants).

SURVEY PARTICIPANT (ANONYMOUS) Those chambers choosing anonymous participation in the survey will not be specifically identified with their data in any of the published (either online or hard copy) survey results. In turn, anonymous chamber survey participants will see all results but the data is never attributed to specific chambers.

SURVEY PARTICIPANT (COLLABORATIVE) Those chambers choosing collaborative participation in the survey will be identified with their data in online results and will have access to results where other collaborative survey participants are identified. The balance of the results will be identified only as anonymous.

What are Voluntary Consensus Standards and Why is ACCE Publishing Them?

Voluntary consensus standards are:

• Standards (definitions in this case) developed by representatives (who have developed "consensus" about defining the standard) of a particular industry or profession for the industry's general and wide-spread usage.
• Adherence to the definitions is optional ("voluntary") - but everyone benefits when all use the same definitions to report data.

ACCE's Board of Directors adopted a benchmarking policy in October, 2004, defining ACCE's role in facilitating member discussions to develop these voluntary consensus standards in addition to other key benchmarking principles.

It is anticipated that promoting key indicators and the standardized use of sources will evolve into an “industry standard” for reporting organizational data.  Adopting standard definitions allows all chambers of commerce to be certain they are comparing the same data and allows more rigorous analysis of financial, membership, and organizational data. If you have further questions or feedback, please contact Lisa Sohn, Director, Research & Technolog or by phone (703) 998-3521.