MCA&F Board Member Orientation Brief

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February 2020

Marine Corps Association History

The Marine Corps Association would “publish the history of the Marine Corps and disseminate information concerning the aims, purposes and deeds of the Corps, and the interchange of ideas for the betterment and improvement of its officers and men…” John A. Lejeune Guantanamo Bay, Cuba 25 April 1913

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Vision

Be an acknowledged partner with the Marine Corps in leader development and recognition of superior performance.

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Mission Statement

To be the preeminent association and foundation for ALL Marines and friends of the Corps dedicated to leader development, recognition of professional excellence and expanding awareness of the rich traditions, history, and esprit of the United States Marine Corps.

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Why the Marine Corps Association & Foundation Does What it Does:

Our Values We believe in advancing the values of the Marine Corps and are dedicated to building an adaptive, engaged, and informed community that is focused on the development of Marine leaders for our Corps and Nation.

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Marine Corps Association & Foundation Two Not-for-Profit

Organizations MCA - 501c19

Veterans Membership Association

•Publications •Member Benefits - insurance, discounts •Retail Goods

• USMC Uniforms • Marine Birthday Ball Supplies • Marine Clothing, Glassware, • Jewelry, etc.

•Professional Dinners •Book Signings

MCAF - 501c3 Public Charity

•Program delivery to advance leadership and recognize excellence

• Libraries • Forums • Writing Awards • Excellence Awards • Student Memberships

One Mission Shared Vision

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Marine Corps Association & Foundation Board of Directors - Board of Governors

“Shared Governance”

Governance Committee

*MCAF Committee Only

LtGen George Flynn, USMC (Ret) Chairman Mr Jay Holmes, Vice Chairman

LtCol Skip Gaskill, USMC (Ret) Governance Committee Chairman Col Todd Ford (Ret) Audit Committee Chairman

Mr Kurt Chapman Development Committee Chairman LtGen Mark Faulkner, USMC (Ret) MCA&F President & CEO

Mr. Bryan Wood, SES (Ret) General Counsel Col Steve Zotti, USMC (Ret) Futures Committee Chairman

Executive Committee

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Futures Committee

Development Committee*

Investment & Audit Committee

Marine Corps Association & Foundation

Chief Operating Officer/ Col Daniel P. O’Brien, USMC (Ret) Publisher/Gazette Editor Col Chris Woodbridge, USMC (Ret) Foundation Operations Col Tim Mundy, USMC (Ret) Member Services Jaclyn Baird The MARINE Shop Dreanna Perkins

President & Chief Executive Officer LtGen Mark Faulkner, USMC (Ret)

Chief Financial Officer Johnna Ebel StratComm/Leatherneck Editor/ E-Commerce Col Mary Reinwald, USMC (Ret)

Retail Support Sabrina Deaver IT Mike Munson

Events/Advertising Sales LeeAnn Mitchell

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Marine Corps Association

CEO

COO CFO

Executive Assistant

Foundation Operations

Publisher Strat. Comm. Events Retail

Support

Gazette

Marketing Leatherneck

Member Services

IT

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E-Commerce

The MARINE

Shop

Marine Corps Association & Foundation President and Chief Executive Officer

• Leader of the organization • Sets the strategic direction • Reports to the Board • Interacts with the active

leadership of the Marine Corps • Active outreach to donors,

sponsors, the retired General Officer Community and other organizations.

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Marine Corps Association & Foundation Chief Operating Officer

• Functions as Deputy, Chief of Staff, and Coordinator of Staff

• Handles “day-to-day” business of MCA&F via the Department Heads and Special Staff

• Assists CEO with the strategic direction of the organization

• Coordinates and integrates • Particular focus on Retail and Membership

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Marine Corps Association & Foundation Chief Financial Officer

CFO

Payroll & Benefits Specialist

Accounts Payable

Specialist & Cashier

Accounting Specialist

Senior Accountant

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Marine Corps Association & Foundation Accounting Process

• Two separate legal entities, both incorporated in D.C. • 1972 and 2009 • Unique tax id numbers, unique filing requirements

• Both are Not-for-Profits required to file separate IRS and State annual returns

MCA 501(c)(19) - Veterans Service Organization MCAF 501(c)(3) - Charitable Organization (Public Charity)

• Separate accounting and tax reporting, but consolidated financials Two general ledgers Different accounting principles Two sets of financial statements Different benchmarks

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Accounting Process Cont.

MCA Investments $10 million Total Assets $16.1 million Revenue Sources: Member Dues Retail Sales Corporate Support Advertising & Subscriptions Affinity & Insurance

MCAF Investments $312K Total Assets $641K Revenue Sources: Donations MCA Support

Shared • Mission • Vision • Staff • Facilities • Board • Committees

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Marine Corps Association & Foundation Audit

Frequency: • Annually, as required by Governance Conducted by: • Independent Certified Public Accountants • CliftonLarsonAllen Reports: • To the Board Audit Committee (fiduciary duty oversight) • Auditors Report financial statements • Internal Control Communication • Governance Communication

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Marine Corps Association Marine Corps Gazette

Editor Col Chris “Woody” Woodbridge (Ret)

Production Coordinator

Administration Support

Copy Editors ( 2 Off site)

Copy Editor (On site)

Senior Editor

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Mission: Unchanged since the First Executive Committee (1913) Goal: The Gazette recognized as the preeminent source for professional debate on the most important issues for the Corps and relevant as an integral resource for the Corps’ leader development and professional growth.

“…the interchange of ideas for the betterment and improvement of its officers and men…”

MCA&F’s First Executive Committee

Marine Corps Gazette

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Current Initiatives: • Future-focused to aid leadership in identifying challenges and

opportunities. • Expanding professional resources for members and Marines • Aligning monthly content with advocacy groups and professional events. Examples: • Expanding the Gazette web presence and on-line offerings using the new

improved MCA&F Website • Increasing reader interaction: Gazette Forum, Gazette Blog, TDG Arena,

Communities of Interest links • TECOM Warfighting Club ”franchise” (CA, HI, NWC, NPS) • Podcast Hub, Web Articles, TDG Archives, Maneuver Warfare Collection;

professional reading lists

Marine Corps Gazette

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2018 2019

GZ Print 32,032 34,226

LN Print 73,857 83,654

Digital GZ & LN 18,748 22,367

Circulation for January - June:

Publisher

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2018 2019

GZ Print 34,737 32,902

LN Print 82,206 74,175

Digital GZ & LN 19,767 20,912

Circulation for July – December:

Publisher

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Advertising Publisher

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61 Advertisers’ Logos $9150.00

• James G Elliot Co only representing us for ”non-endemic” national retail ads as part of the Military Advertising Network

• Defense-related “endemic” ads now

represented in-house leveraging corporate sponsor relationships

2018

GAZ and LNK $341,300 2019 GAZ and LNK $458,900

Editor Col Mary Reinwald (Ret)

Production Coordinator

Deputy Editor

Graphic Designer

Staff Writer

Copy Editor

Marine Corps Association Leatherneck

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• 100th Anniversary Nov 2017

• Semi Annual Circulation 80,000 Print 22,367 Digital 20,000 High Schools

• Writers Staff Independent Authors Active Duty Marines

Introduction Magazine of the Marines Yesterday,

Today, and Tomorrow

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Articles Marine Corps History Interviews Changes to the Corps USMC Events, Past and Present

Today’s Marines OEF and OIF Technology Outstanding Marines

•Awards •Two Marine Corps Heritage Foundation Awards Winners in 2018

Magazine Content

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Looking Forward Keeping it Fresh • Updated Look, Inside and Out • New Writers included Active

Duty Marines • Focus on Younger Audience • Leatherneck Writing Contest

Sponsored by the Foundation +50 Entries +10 Articles to be Published

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Director Col Mary Reinwald (Ret)

Communications Manager

Graphic Designer

Communications Coordinator

Marine Corps Association & Foundation Strategic Communications/E-Commerce

Marketing Analyst

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Website Manager

Strategic Communications Mission • Collaborate with all

departments to ensure communications efforts are: • Consistent • Cohesive • Collaborated

• Increase awareness of MCA&F and its mission among nonmembers

• Provide support to all departments

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Communication Email • Semi-Annual Newsletters • Membership Acquisition • Event Awareness • Foundation Campaigns • Monthly Publications • Outside Partners/Affiliates

Social Media • Facebook • Twitter • LinkedIn • Pinterest • Instagram • YouTube/Flickr

Briefs • Internal • Area Reps • TMS Presentations • TBS Presentation • Monthly Publications • Outside Partners • Schools and Courses

Miscellaneous • Internal Magazine Ads • Area Rep Supplies • Materials for Events • Web Development • Internal Reports • Direct Mail • Membership Materials

Minimize Quantity - Maximize Effectiveness

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Social Media • Facebook +380,000 likes Weekly Reach 65,000 Weekly 3,000 engaged users • Twitter +9,000 Followers Monthly Reach +50,000 • LinkedIn 20,000 Followers Monthly Reach +150,000 • Instagram +14,000 Follows Weekly Reach +10,000

• Social Media Posts Marine Corps News Current Magazine Articles Archives Website Digital Content Foundation and Membership Campaigns Today in History Promoting MCA&F TMS – Cross Branding Crazy Captions

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Initiatives •Marine Corps Marathon •Virtual Races •Oral Histories •MCPP inserts •Facebook Donations •Catalogs •Retail initiatives •Marine Corps League •New Website •Retail Website •Resource Page •Gazette Forum Blog •Podcasts •Ad creation

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Director Member Services

Member Service Representative

Member Service Representative

Marine Corps Association & Foundation Membership

3 Area Representatives

COO Col Dan O’Brien (Ret)

Strat Comm Supports Member

Acquisition

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Membership

Year Total 2014 64,657

2015 66,165

2016 67,285

2017 69,458

2018 67,814

2019 56,477

Acquisition Sources • Area Reps • Retail • Digital • Direct Mail • Promotions

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Membership Membership Initiatives • Unit membership offers • Segmented communications • Increased member engagement to

reinforce the connection • Premiums for membership renewal • Active engagement at Schools of

Infantry and Recruit Depots. • Active engagement at MCU

schools for both officer and enlisted education.

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COO

E-Commerce Col Reinwald

Retail Support Sabrina Deaver

The MARINE Shop Dreanna Perkins

Marine Corps Association Retail Operations

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Purchasing Warehouse Fulfillment Call Center

Retail Facts • 2019 Retail Revenue- $7.005 million • Total Retail Profit $516,800 • E-Commerce - 23,000 orders • Uniform Sales

≈ 70% of newly commissioned Lieutenants - The MARINE Shop

• Business-to-Business Biggest customer – MCCS: 40,199 Guidebooks

• Available worldwide with the best service and quality

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The MARINE Shop • Founded in 1972

• Acquired by MCA&F in 2007

• Began Online Operations in 2009

• Works closely with USMC Licensing Trademark Office

• Marine Corps Systems Command certifies every uniform item

• Uniform financing offered in 2018 • New officer uniforms remain a

major line of effort

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Director LeeAnn Mitchell

Events Coordinator

Events Assistant

Marine Corps Association & Foundation Events/Corporate Sponsorship

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Professional Events Program Began in 2004 • Ground Awards Dinner • Two Ground Dinners Without Awards • Ground Logistics Awards Dinner • C4 Awards Dinner • 16 Awards Presented

Today • Over a Dozen Events Yearly

• (15 in 2019) • 5 Awards Dinners • 2 Awards Ceremonies • 45 Awards Presented • Hosted from the NCR to Okinawa • Potential new event in Chicago 2020

History

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•Hosted 15 Events in 2019 •Notable Speakers

Former SecDef James Mattis Former SecDef Robert Gates Gen Joseph Dunford Gen David Berger Gen Peter Pace Gen Robert Neller Gen John Paxton Gen David Petraeus Gen Martin Dempsey

• Three Fleet Commanders in 2020

A Growing MCA&F Presence

Gen David Berger, Commandant of the Marine Corps

2019 Ground Dinner

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• Corporate Support funds MCA Professional Dinner events.

• Some corporate support along with donations support Foundation Awards and Active Duty Marine attendance

• Primary sponsors are from industry with USMC interests

• Sponsors attend the dinners to network, present awards, maintain their connection to the USMC and for recognition

• Sponsorship levels - $500 - $75,000 • (USAA is the Semper Fidelis sponsor) • Most average $1900 each • Packages and Individual Dinners

Offered

Sponsorships

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Sponsorships 2018/2019

MCAF $220,050 / $200,078

MCA $877,633 / $983,502

Marine Corps Association Foundation CEO

CFO

Business Systems Support

Business

Member Services

Foundation Operations

Strategic Communications

Publications

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COO

Marine Corps Association Foundation

Director of Foundation Operations Col Tim Mundy, USMC (Ret)

Director of Professional

Development

Administrative Assistant

Donor Development

Officer

Programs Administrator

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The Marine Corps Association Foundation was founded in 2009 as the non-profit arm of the Marine

Corps Association and helps develop leaders by providing forums for professional education,

exchanging ideas, and preserving the traditions of the Corps. We stand by Marines with valuable

resources through every step of their Marine Corps journey.

Purpose

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Support Provided to Marines • Unit Libraries • Commanders’ Forums • Marine Excellence Awards • Writing Awards • Student Memberships

Marine Corps Association Foundation Programs

2019 — nearly $1,000,000 spent in Support of ~50,000 Marines!

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Moving Forward – Adapting to Meet Demand Victor E. Johnson Uniform Award A great example of partnership between MCA&F and a dedicated leader for fundraising and donations. • The award = $3,500 gift for uniform costs; awarded

to the top prior enlisted OCS Candidate with dependents (spouse and child/children).

• Chris Bird and his family generously funded the initial grant.

• Goal is for the award to can become self-funded (endowed).

• Finding the “next” program that adds value to what we provide Marines remains an enduring goal!

A proposed model for the Future: Endowed Program = well-defined and compelling need + dedicated lead + MCAF support +

individual and corporate donations + financial management

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Purchase Card Industry Data Security Standard (PCI DSS)

MCA&F and PCI • Compliant since 2014 • Self assessments questionnaires and scanning current • Annual PCI training and testing completed for PCI users Cyber Security • Firewalls updated and patched • Desktops updated and patched weekly • Annual training and probing of user community Board Member Visit to MCA&F HQ 2018 • Combined PCI & business continuity plan (BCP) teams • We have one cohesive document holding all information necessary to

maintain both PCI and BCP

Summary

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• Broad Engagement – Marines, veterans, friends of the Corps, sponsors, donors, shoppers, etc..

• Period of dynamic change – a constant • Enhanced Partnerships • Constantly looking to expand the reach and

value of our programs, content and services for the active Marine Corps and veterans

• Guided by our Strategic Plan • Remaining true to our mission