Even if you’re Even if you’re on the right on the right track, you’ll get track, you’ll get run over if you run over if you just sit still.just sit still.

~~Will RogersWill Rogers

What are We Talking About?• Transforming our association into America’s most

powerful advocacy organization –the leading advocate of the right to own, use, and transfer real property

• “Even if you’re on the right track, you’ll get run over if you just sit still”

• Yes, we are on the right track, but let’s not get run over

• Let’s drive this train -- and make sure it has the fuel to get us to our destination

What Changed?

A Supreme Court Decision in January 2010:Citizens United vs. Federal Election Commission

What Does the Ruling Mean?• Eliminated the federal requirement that hard dollars be used

to pay for independent expenditure campaigns designed to influence the outcome of an election

• Over-turns laws in 23 states with similar limitations

• Corporate funds– dues money--can be used to pay for these activities in all 50 states.

• Unmistakable message – an awful lot more money now working to win voter opinions.

Hard Dollars vs. Soft Dollars• Hard dollar contributions are

voluntary investments of personal dollars by individuals

• Soft dollars are corporate funds – or in our REALTOR® Organization -- dues dollars

• Dues money can now be used to fund independent expenditure campaigns

• However, only hard dollars can be contributed directly to candidates

A Game Changer

• We didn’t change the landscape. It was changed for us

• We have to adapt to this ruling and make critical decisions in reaction to it

• Implications of not acting and adapting can have huge impacts on our business and the future of real estate in America

Why?• Corporate funds/dues money

can now be used for independent expenditure campaigns

• You may not like money being a driving factor in politics or elections, but the fact remains it is the CRITICAL factor in determining a positive outcome on both races AND issues

Opportunities Abound

“As REALTORS®, we have a tremendous opportunity to leverage our power in the political arena – not in spite of this new world campaign fundraising and spending, but because of it!”~Cathy Whatley, Chair of the NAR Presidential Advisory Group , REALTOR® Political Survival

What To Do About it?

• NAR’s Leadership Team recognized that we needed to enhance our political influence and clout so it created the REALTOR® Party and started building the foundation.

• We have the people. • We have the grassroots. • We have the structure.

What Does the REALTOR® Party Do?

• Deploys powerful tools to help all three levels of our organization effectively elect REALTOR ® champions and win our legislative and regulatory battles

• Three components: Vote Act Invest

How Does the REALTOR® Party Do It?

• An unprecedented partnership at all three levels—National, State and Local

• Six key areas of political and advocacy

Find out more about the REALTOR Party at www.realtoractioncenter.com

…

State/Local Issues

Campaign Services

State/Local Candidates

REALTORS®

The Most Powerful Advocacy Group in America

Federal IssuesFederal

CandidatesREALTOR®

Mobilization

The REALTOR® Party Power House

Six programs (rooms) – each with tools to use our grassroots strength to make our voice heard in Congress, State Legislatures, City Halls, County Courthouses, school boards and more.

Federal Candidates & Federal Issues• Both represent proven programs you are most familiar

with: winning crucial legislation like the Homebuyer Tax Credit and supporting our REALTOR® champions in Congress

• These efforts are the #1 item our members tell us they most want from NAR

• The cost of being engaged in these efforts went up significantly with the Supreme Court ruling

• Our goal here is to not only to do what we have done so well to this point but to do more

Federal Candidates

Federal Issues

Federal CandidatesWinning strategies already in place. In the 2010 elections:

– NAR won in 70 of 92 General Election opportunity races

– NAR won in 7 of 11 Primary Election independent expenditure campaigns

– 103 races/campaigns (combined) were the most ever – with a 76% success rate

Federal Candidates

Federal Issues

Federal Candidates

Federal Issues

Federal Issues

• Provides funding to run ads directed at state delegations to the U.S. Congress

• In the past, 90% of our budget has been spent in DC.

• Going forward, will spend more in districts – doing advertising, including thank-you ads, within individual districts

Federal Candidates

Federal Issues

Why More?• The hard dollar PAC advantage we worked for more than 40 years to

achieve will be swamped with soft money independent expenditure campaigns at all three levels of our electoral process

• NAR will need to do a greater number of independent expenditure campaigns to generate the same net results

• Ruling allows NAR to expand activities and fund candidates to influence the debate on issues important to our industry, our members and private property owners

• Even if we just continue to do the same activities, the cost will be more because the cost of advertising is increasing every year.

REALTOR® Mobilization• Successful because of the ongoing effort from all of

you when you Invest in RPAC and Act by responding to Calls for Action

• This room includes 5 key programs :

1.The PAC Management System 2.The RPAC Direct Fundraising Program providing direct grants for

state and local campaigns 3.The Online Advocacy Tool for Calls for Action – now used by 47

states and 200 locals 4.The Broker Involvement Program 5.The Major Donor/Presidents Circle Recognition Program

REALTOR® Mobilization

Pressure Remains to Raise Voluntary RPAC Contributions

• The Political Survival Initiative does not change our program for raising RPAC Voluntary Contributions

• There is no change in fair share goals, no separate goals for hard dollars versus soft dollars

• Direct giving to Congressional candidates and political parties must be funded using hard dollars

REALTOR® Mobilization

Campaign Services• Gives your associations the data and tools to run

successful candidate and advocacy campaigns at the state and local level

• Lays the cornerstone of our REALTOR® Party Power House because it provides the toolset for the other programs

• The core is a national voter database to target REALTORS® and the general public and provide support for candidates and issues important to the real estate industry

Campaign Services

Campaign Services• NAR will partner with your association to deliver voter records,

member AND consumer polling and survey research for your market area as well as consulting services to maximize success.

• Four basic components:1.Licensing of the voter files 2.Consulting 3.Survey Research4.Data management

• This room is money that comes right back to the state and local levels in the form of funding and services.

Campaign Services

State and Local Services• Assist state and local associations in

supporting or fighting issues that impact property owners’ rights and REALTOR® interests.

• Began in 2008, assisted Arizona Association in passing a state amendment to permanently prohibit transfer taxes.

• In 2010, NAR funded new anti-transfer tax campaigns in Missouri and Montana.

State/Local Issues

Results: State and Local Services• Permanently prohibiting

transfer taxes by passing state constitutional amendments

– 2010 -- Missouri 83 % of the vote

– 2010 -- Montana 73 % of the vote

– 2008 – Arizona 77% of the vote

State/Local Issues

Why More?• Build on our successes

• From 2004 to 2009, the average request doubled from $30K to $60K. At the same time, the number of requests doubled

• We anticipate that the number of requests and the amount

for each request will double again between 2011 and 2016. • NAR anticipates 22 requests in 2011 at $51K each. • NAR anticipates42 requests anticipated at $132K each in

2016

• This is money that goes right back to your state and local association in the form of direct funding and services

State/Local Issues

State and Local Candidates

• Create a soft dollar partnership to help state and local associations elect REALTORS® and REALTOR® Champions to state and local office

• NAR partnered with state and local associations in Maryland, Michigan and Utah to increase voter turnout in support of REALTOR® endorsed candidates

State/Local Candidates

State and Local Candidates

"The REALTORS' campaign differed from that of such large trade and business groups as the U.S. Chamber of Commerce in that it was built around one industry and targeted at a subset of candidates with clear records of advocating on housing issues while serving in Congress, a state legislature or on the job." ~Politico Realtors' effort could be next wave in fundraising” February 2011

State/Local Candidates

State and Local Candidates

• Utah – Re-election of a State Senator and a REALTOR® as Governor

• Michigan – Two Supreme Court Justices win – one for first time and one re-elected

• Maryland – Five of 11 REALTOR® Party candidates elected

State/Local Candidates

State and Local Candidates

• Increasingly property rights issues and costs associated with owning real property are dealt with at the state/local levels

• Influence their outcome by electing officials who recognize and advocate for sound public policy on real estate related topics

• Actively groom our REALTOR ®Party Champions at the state and local levels before they move up to the national level

State/Local Candidates

State/Local IssuesState/Local Issues$9.77 million$9.77 million

(annualized(annualized))

Campaign Campaign ServicesServices

$4.32 million$4.32 million(annualized)(annualized)

Total investment each year

$38.8 million$38.8 million(annualized)(annualized)

State/Local State/Local CandidatesCandidates

$7.02 million$7.02 million(annualized)(annualized)

Federal IssuesFederal Issues$8.95 million

(annualized)(annualized)

Federal Federal CandidatesCandidates

$$3.59 million(annualized)(annualized)

REALTOR® REALTOR® MobilizationMobilization$5.17 million$5.17 million(annualized)(annualized)

What These Programs Will Cost

Per year costs based on a five-year plan

Over the next five years, we’re talking about two-thirds -- $119 million of $194 million-- coming right back to your state and local associations in the form of direct funding and services to strengthen your markets and your business.

How to Pay for It?

• The NAR Finance Committee is proposing a $40 dedicated dues increase.

• This $40 would become a portion of each member’s total dues beginning in 2012 and would be dedicated to advocacy programs only.

• The advocacy programs it funds would be reviewed, along with all other programs funded by NAR dues, at the end of this budget cycle in 2013.

Who Decided This?• It is not decided yet• A proposal from a Presidential Advisory Group (PAG)

appointed by 2010 NAR President Vicki Cox Golder • Implications considered through the PAG’s year-long

deliberative process• PAG is composed of member volunteers, RPAC trustees and

association leaders• Your own leadership representatives on the Board of

Directors will consider, review and vote on the dues increase in May

• Last fall, the NAR Board of Directors approved proceeding with the research needed to get to this stage of the proposal, including a potential recommendation on a dues increase

We Are Linked• This bold initiative will bring big

challenges

• Not everyone will always agree with the candidates selected, the issues chosen or the campaigns in which we engage

• But when it comes to our core beliefs as an association, we are linked together

• These actions will help us to grow in strength and effectiveness

• They are designed to positively impact your bottom line by ensuring you have a market conducive to real estate

Engage in the Process• NAR Leadership is actively listening and

monitoring the conversations online through blogs, Twitter and Facebook, as well as via phones and email.

• Call, write or post:

Email us: rppsi@realtors.org Call us: (800) 874-6500

Comment: www.realtoractioncenter.comTweet: #rppsi

What Happens Next?

• Midyear Meetings Session in DC Wednesday, May 11 – 3:30 – 4:30 pmSalon 2, Marriott Wardman Park Hotel

• Board of Directors Vote in DCSaturday, May 14, 8:30-NoonMarriott Ballroom, Marriott Wardman Park Hotel