Money, money, and more money!

A couple more conference questions that didn't quite make it...... 

“16. Would the Fellowship discuss, share experience and make recommendations on whether the selling price of AA literature should be reduced?

Background 

• Guideline 12 

• Report of the Trustees and Financial Statements for the year ended 30 September 2012 
• Tradition 7 
• Concept XII

Guideline 12 suggests GSO hold 'a prudent reserve equivalent to the budget expenditure for the forthcoming year', this aim being underlined by the Reserves Policy in the Report of the Trustees. However, at 30 September 2012 reserves totalled over £1.9 million while annual expenditure was £1.2 million.

In the year to 30 September 2012 the General Service Board reported a surplus in excess of £250,000, further increasing its reserves from a figure already over the Guideline's recommended position and the Trustees' aim.

Tradition 7 long form states that ‘...we view with much concern those A.A. treasuries which continue, beyond prudent reserves, to accumulate funds for no stated A.A. Purpose.’ Additionally, Concept XII warns against becoming ‘...the seat of perilous wealth...' In the year to 30 September 2012 literature sales were £512,000 while costs were £178,000. Literature is therefore being sold at almost three times cost.

Reducing the selling price of literature would bring many benefits, such as:

• decreasing the Board's annual surplus and reducing reserves to bring them into line with Guideline and Trustees' aims to hold one year's running costs as a prudent reserve.

• helping groups and members to carry the message more widely at a lower cost.

• allowing AA groups to sell literature at a lower price than online bookstores, making this part of the fundamental attraction of meetings.

My intention behind asking this question is to address two significant issues revealed by the latest accounts‐ those being that literature is being sold at a large profit, significantly hindering its vital role in carrying the message more widely, and the unnecessary and ever growing level of reserves which are in danger of compromising our primary spiritual aim.

Terms of Reference No. 6/7 Background information incorrect and is the responsibility of GSB.”

And:

“17. Would the Fellowship discuss, share experience and make recommendations on whether, given recent negative publicity surrounding corporate tax avoidance and the use of tax havens, allowing the Board's investment managers to place A.A. reserves in various funds listed in Luxembourg risks the Fellowship being drawn into public controversy?

Background 

• Tradition 10 
• Report of the Trustees and Financial Statements for the year ended 30 September 2012

The short form of Tradition 10 suggests that '...the AA name ought never be drawn into public controversy’. The Report of the Trustees and Financial Statements for the year ended 30 September 2012 discloses, at note 14, the following investments valued at over 5% of the total invested:

Giobal Select SICAV‐ Sol Glob EQ L{A) (market value £108,398), and Global Select ‐ Corporate Bond XXVIII (market value £101,300)...Global Select Total Return Bond XLI (market value £42,600), and Bluebay Investment Grade Bond Fund Lux Listing (market value£51,024)

These funds are listed in Luxembourg, a low tax regime.

My intention behind asking this question is to address what I see as a very real threat to AA's noncontroversial stance. I strongly believe our reserves should be held in UK listed investments, in a mix of riskfree Government bonds and ethical investments. With public opinion as it currently stands, investing in Luxembourg assets is unwise.

Terms of Reference No. 7 Responsibility of General Service Board”

Comment: For question 16 see here.

As usual the solution is simple. If the General Service Board is not prepared to uphold AA traditions then it's time for them to go. If the General Service Office (York) has become profligate with our funds then the solution again is simple. Cut off their money. The fact is that whereas they might need us we don't need them. Our primary (and indeed sole) responsibility is to carry the AA message to the still suffering alcoholic. This has always taken place best face-to-face (either one-to-one or via the AA group and meeting). To this end each group's priority should be its own financial viability. ie. can it pay the rent for the meeting venue? After that all we need to do is provide the necessary conduits for potential members to contact us either via the phone, personal contact, or increasingly the internet. For none of these do we require the services of a head office. Similarly ALL AA literature should be provided online free. It should not be used as a subsidy for the running of increasingly expensive, (and as we have already said) largely unnecessary facilities For those who require hard copies these should be made available at cost (with absolutely no profit element included). With respect to the last item it should be a relatively simple matter for groups to provide a library service for members so that the latter can borrow books rather than buy them. A refundable deposit could be taken to cover loss or damage to items. Similarly literature secretaries should advertise the fact that AA literature is mostly available free online and provide the web links to these (we shall be experimenting with our own hand outs and posting these online in the near future). Finally the General Service Office (York) has always been a bottomless pit and will always ask for MORE money – and the MORE of YOUR money they have the MORE of YOUR money they will inevitably spend (and hoard apparently!). Cut off the supply and they will soon find ways of reducing unnecessary expenditures, or indeed simply cease to exist. AA will adapt and carry on and hardly notice their absence!

As for question 17, if the flow of funds is reduced so is the surplus and thus the need for investments (ethical or otherwise) ….. problem solved! Simple isn't it!

Cheers

The Fellas (Friends of Alcoholics Anonymous)