• Grace Caldwell

President's Message - May 2020


Dear Quota Members,


How are you faring with the drastic changes we are all experiencing in our everyday lives? I remain under Stay-at-Home orders in my Metro Manila residence. The Enhanced Community Quarantine for my specific area was extended for the third time, until May 31. Only groceries, drugstores, and banks are open, while the other businesses remain closed. Our movements are limited within the city where we reside, and curfew is still implemented from 8 p.m. to 5 a.m.


Like you, I worry about those in our communities, some of whom, as a result of this pandemic and its resulting social restrictions, have been prevented access to the resources our often life-changing service projects provide. The good news is that Quota service is continuing in new and different ways, and we are doing our best to continue extending our helping hand where needed, and when possible. I come away from my daily reading of our Quota International Facebook page so inspired by your stories of service and caring which are continuing on during this time of crisis. I urge you to visit and “like” our page. Doing so will ensure that you remain connected to fellow Quotarians after the final dissolution of our organization because our Facebook page will remain live, administered by volunteer administrators.


In Washington, D.C., our hardworking staff remains at the other end of our computers even though they must work remotely from their respective homes. Quota Executive Director Nancy Fitzpatrick and Community and Program Manager Grace Caldwell report using Skype for their daily meetings, and I hear that many clubs and regions are now turning to Zoom to remain connected and take care of Quota business. Those of us who have eschewed technology are now getting an unexpected second chance to develop new skills in this area.

Although we have had to cancel our final set of regional meetings as well as our final international convention, Quota is still here, and we are working hard to ensure that we end well as we originally planned to do.


This month, I wish to provide you with a status report on the financial side of Quota International’s operations.


Current Financial Overview

Now that the proposal to dissolve Quota’s International structure has been approved by voting delegates, our financial goal this year is to disseminate all of Quota’s financial resources as of the end of the “winding up” period after Quota International officially dissolves.


That being said, we did publish a projected financial budget for this fiscal year, which began on October 1, 2019. At the time the budget was created, a full Quota International program year was planned, complete with regional meetings and a convention, having no idea that a pandemic was on the horizon. We still intend to complete this fiscal year before dissolving with as full a program as possible, but like all organizations, companies, and businesses, COVID-19 requires that we do so in a different away.

· Income

As can be expected, our actual income in the 2019-2020 fiscal year will end up being less than projected due to both the dissolution of Quota’s international structure and the pandemic which forced the cancellation of Convention 2020. Beginning in January 2020, the Board of Directors requested that no member dues, initiation fees, or donations be submitted to Quota International while the proposal for dissolving Quota’s international structure was under consideration. Once voting delegates approved the proposal, that decision was made permanent. In a further loss of projected income, our long-time tenant of Unit 6 moved to new quarters on April 15, thus ending that income stream. We were fortunate to have our tenant remain with us for almost 17 months after we put our suites up for sale.

Therefore, our major sources of income as of March 31, 2020, include US$287,888.69 in dues-related income and US$32,486.30 in non-dues income for a total so far this fiscal year of US$320,374.99. Please note this breakdown:


-The US$287,888.69 in dues-related income includes membership dues paid on October 2019 dues statements; initiation fees and new member dues received by December 31, 2019 (no new members were accepted after this date); and, late fees for clubs which paid dues after the October 31, 2019, payment deadline.


-The US$32,486.30 is broken down this way: US club liability insurance payments ($11,156.68); QI donations made prior to January 2020 (US$8,688.39); rental income (US$7,944); and smaller amounts of investment income and club supply sales.


Going forward in our income area, we expect to receive only minimal amounts of income in the form of club supply sales and investment income.

· Expenses

Although our income is understandably lower than originally projected last October as explained above, as of March 31, 2020, Quota International’s direct expenses (which do not include depreciation or currency exchange gains or losses) were also under budget by US$89,886.41. While the primary reason for this significant amount was the cancellation of Convention 2020, we are also operating under budget in salaries, general administration, professional services, insurance, and capital building expenses. Our Board Meeting/Leadership travel budget will also end this fiscal year well under the projected budget by an estimated US$13,500 because no more in-person Board meetings are planned. One item is over budget at this time – occupancy, by US$15,503.23 because of realtor fees not budgeted for incurred during the sale of Unit 5 in December 2019.

What is the bottom line? We projected a budget shortfall of US$169,212 in the original budget for this fiscal year. Even with the reduction in expected income, we expect that the shortfall will still be less than that amount. We will have additional expenses related to dissolving Quota’s international structure which can’t be fully determined until all office space is sold. The reason is we cannot determine how many months beyond September 30, 2020, Quota International will need to operate. If the office space sells prior to September 30, 2020, and dissolution papers are filed on that date, less time will be needed to operate the organization than if the space doesn’t sell by then.

Here are details about specific items related to Quota International’s finances that you may be wondering about:

· Office Sale Proceeds: The US$717,419.15 earned from the sale of our first two office suites (Suite 8 in February 2019 and Suite 5 in December 2019) remains untouched in our Merrill Lynch Reserve Money Market account. As previously projected in the October 1, 2019, fiscal year budget, it is expected that we will need to begin to use some of these monies in the coming months in order to finance the final portion of this fiscal year. Fortunately, because our expenses are under budget, the need for these monies has been delayed.

· Sale of Remaining Office Space: Prior to the COVID-19 pandemic, Quota International had lowered the price of the remaining two office suites it currently owns by 10 percent which increased interest in and showings of the space. (This was the second 10% drop made in the listing price since November 2018.) Unfortunately, the pandemic has greatly limited interest and the ability to show commercial real estate in Washington, D.C., where our office space is located. The current listing price for Suite 6 is US$342,000 and the listing price for Suite 7 is US$224,100. View a copy of our listing here. We will revisit our marketing and sales strategy as well as listing prices once Washington, D.C.’s real estate market becomes active again. You will recall that if the space is not sold by September 30, 2020, Quota International will continue operating as an inactive organization, but it will not dissolve.

· Liabilities: Once the remaining two Quota International office suites are sold, Quota International will pay liabilities acquired prior to 2018 during the tenure of the previous staff management. US$81,744.72 in donations collected for Hand-in-Hand projects and never disbursed will be paid. In addition, Quota International will return a $10,000 grant it received for a project that was never completed.

· Membership Dues Refunds: As you all know, the Board of Directors proposed refunding a significant portion of Quota’s reserves back to members in the form of membership dues refunded for a period of one or more years. Unfortunately, until we sell our final two suites the amounts and timing of the refunds are unknown. If your club changes its name before September 30, 2020, please ensure we have the new name and your club’s contact information. We will work out a refund plan for clubs which propose to dissolve on or before September 30, 2020, and will not be continuing in any form should the office space not be sold by that time. As a reminder, all Members-at-Large will receive a refund of their membership dues as well at the time that clubs receive their refunds.

· Convention 2020 Cancellation: I am pleased to report that both the Amway Grand Plaza Hotel and the DeVos Convention Center (where Convention 2020 general sessions were going to be held in Grand Rapids) allowed Quota International to cancel its contracts without penalty because of the pandemic. What this means is that Quota International is not liable for minimum hotel room or food requirements contained in our contracts, which could have totaled US$100,000 or more. Because Quota added a “communicable disease” rider to its event insurance policy it obtained in 2019, we are planning to put in a claim for reimbursement of other smaller nonrefundable convention-related expenses.

· Advance Convention Fee Monies: US$84,397.39 in Advance Convention Fees collected in 2018-2019 and 2019-2020 remain untouched in our Quota International Savings account. These monies will be added to any remaining reserves from the sale of Quota’s office suites and returned to clubs via membership refunds.

· Hand-in-Hand Donations: All 2019-2020 Hand-in-Hand donations that were received from members and clubs have been disbursed to their respective Hand-in-Hand projects. We will share reports from the clubs on how those monies are being spent prior to the end of this fiscal year. Because no new Hand-in-Hand monies are expected this fiscal year, we closed down the We Share Foundation Savings account that exclusively held Hand-in-Hand donations. We are expecting to announce a new Hand-in-Hand program going forward that will begin after Quota’s international dissolution. Details on the program are almost complete, and we are very pleased that support of the projects can continue in future years.

· We Share Foundation: The We Share Foundation remains primarily inactive this year. Its main purpose has been to administer the Hand-in-Hand World Service program. The Foundation will be dissolved on September 30, 2020, whether or not the final two office suites are sold. Currently, the We Share Foundation bank account holds $13,188.26 in cash.

In closing, I wish to assure you that we continue to operate our finances as efficiently and effectively as possible. Executive Director Nancy Fitzpatrick continues to provide President-elect/Treasurer Carol Patin and me with weekly financial reports containing listings of all cash assets and all weekly expenditures. In addition, she provides monthly financial reports to all Board Members including monthly and year-to-date Profit and Loss Statements and the Balance Sheet. Finally, all Board policies relating to the handling of our organization finances are adhered to at all times.

I know that these are trying times for us all. We are adjusting to a new way of living that restricts our movements beyond our homes, requires the wearing of personal protective equipment, and keeps us away from connecting in person with our loved ones.

Through all of this, remember that Quota International is here for you.

Yours in Quota,


















Emilie Simon

2018-2020 President

QUOTA INTERNATIONAL, INC.

1420 21st Street, NW
Washington, DC, 20036
United States

CONTACT US:

E-mail:       staff@quota.org

Phone:            202.331.9694
Fax:                 202.331.4395

© 2019 Quota International, Inc.

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