Definitions 

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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 CFOs serving on a benchmarking task force, with significant input by the NAMD (Membership Development) Division advisory board. Click here for more information.

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.

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 2004. As an example, if you have 25 employees at the end of fiscal year 2003, and 22 of the same employees are still employed at the end of fiscal year 2004 calculate: (25 – 22) divided by 25 = 12% employee turnover rate.

EXPENSE (ADVERTISING AND MARKETING) 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 (PERSONNEL) is all personnel expenses for the fiscal year ending in 2004, including salary, bonuses, payroll taxes, insurance, retirement. Not including training or other perks. 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 2004 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 2004 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 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 2003 membership accounts minus number of cancellations in 2004, divided by the number of 2003 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 1999,2000,2001,2002,2003. 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 2004. Also called net profit or change in net assets.

NET INCOME (5-YEAR AVERAGE) is the average of the net income booked in the fiscal years 1999, 2000,2001, 2002 and 2003. To calculate, add together the net income reported on each end of year financial statement for each of the five fiscal years, then divide by five.

NET INCOME (EVENTS) is the difference between total event revenue and total direct event expenses (excluding overhead and personnel expenses) for the fiscal year ending in 2004.

NET INCOME (Programs/Publications) is the difference between total revenue for all programs and publications and the total of the respective direct expenses (excluding overhead and personnel expenses) for the fiscal year ending in 2004. 

NEW CHAMBER INITIATIVES are those programs/products/publications/events/services initiated and budgeted for the first time in the fiscal year ending 2004 and remain a budgeted item in your current fiscal year.

REVENUE (AFFINITY) is the total un-restricted money or in-kind service, recognized in the fiscal year ending in 2004 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.

REVENUES (CAMPAIGN ANNUAL RECOGNIZED) is the annual un-restricted amount recognized from a single or multi-year fundraising campaign as 2004 un-restricted revenue on the income/expense statement, also called financial statement of activities.

REVENUE (CONTRACT/GRANT) is the total un-restricted revenue recognized through contracts or grants during the fiscal year ending in 2004 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 organization revenue from projects and programs performed by outside vendors, for example, map or directory publishing, seminar promotion or affinity programs.

REVENUE (EVENT) is the total un-restricted money or in-kind service recognized during the fiscal year ending in 2004 by the organization for the sponsorship or participation of all organization events.

REVENUE (OTHER INCOME) is the total un-restricted money or in-kind service recognized in the fiscal year ending in 2004 by the organization that was NOT included in this survey as revenue from dues, campaign, events, program/publication, affinity, contracts or grants. This includes un-restricted interest from investments, rental income, etc.

REVENUE (PROGRAM/PUBLICATIONS) is the total un-restricted money or in-kind service recognized during the fiscal year ending in 2004 by the organization for all non-event programs or publications, i.e. newsletters, magazines, relocation materials, incubator programs, small business training, Washington fly-ins, Leadership programs, etc.

REVENUE (TOTAL UNRESTRICTED) is the total money or in-kind service, received in the fiscal year ending in 2004 which is not restricted for use by legal or contractual requirements and may be used for any purpose. 

SURVEY PARTICIPANT (ANONYMOUS) Those chambers choosing anonymous participation in this Chamber Operations 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 only see results where data is never attributed to specific chambers.

SURVEY PARTICIPANT (COLLABORATIVE) Those chambers choosing collaborative participation in the Chamber Operations Survey will be identified with their data in online results and will have access to results where other collaborative survey participants are identified.

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 Tamara Philbin, Senior Vice President, at tphilbin@acce.org or (703) 998-3533.