Fallout from the Balloon Federation of America's Competition Division distributing surplus funds, first reported here last month, has taken a strange course. The result of which is a motion made, by BFA director Glen Moyer, and passed, that a committee be formed to split the BFA into two organizations. It's time for a reality check.
First, a review of history is in order. In late January the Competition Division of the Balloon Federation of America held a board of directors meeting in Ft. Meyer, Florida. During the course of this meeting that board voted to refund to each of its voting members $175 of surplus funds. This discussion and vote are not reflected in the minutes of the meeting as published in the division's newsletter Briefings. Minutes of a subsequent conference call meeting of the CD board on March 11 reflected that the board reaffirmed their January decision to distribute the funds.
Who knew that $70,000 of the organization's money was going to be given away? Apparently board members of the Competition Division and few others.
Once the funds were distributed and Balloon Life began its investigation, BFA president Rob Schantz asked for a legal opinion from BFA general counsel David Rapp. That opinion said that this distribution of funds was not permitted under the organization's 501(c)(3) tax exempt status. A BFA board meeting was held and by unanimous vote the board decided to request a return of funds. A proposed letter to be signed by the BFA president and CD chairman was approved.
David Lowe, chairman of the Competition Division, refused to sign the letter until he talked with his board, which was schedule to meet a few weeks later. Subsequently, the CD board has voted unanimously to not sign the letter nor request return of the money.
The BFA board then held another conference call meeting and, by a vote of seven to two with one abstention, voted to mail a letter to all who received the check requesting that the money be returned.
A motion was made by Koh Murai, seconded, and passed to revoke the CD's division status. After discussion that motion failed by a vote of four to six.
Mr. Moyer proposed his motion to establish a committee that would work out the details of how the Balloon Federation of America and its Competition Division would become two separate organizations. That motion passed six to four.
Balloon Life contacted Mr. Moyer and asked him why he wanted to split the BFA into two new entities. He felt that it was in the best interest of all parties to do this. His logic? "Something needs to be done. I believe that if the BFA board were to rescind the competition division status or attempt to impound their funds that Dick Rudlaff would sue the BFA to block that action. A lawsuit could take several years to resolve draining the BFA's resources, potentially bankrupting the BFA in the process."
Balloon Life contacted Mr. Rudlaff, former chair of the division and currently its newsletter editor, and asked him if he would indeed sue the BFA. His reply? "That would be a novel approach. No, I have not spoken with anyone discussing suing the BFA."
Balloon Life then asked if he would flatly rule out suing the BFA? "I would prefer that this matter be worked out through other means."
Mr. Moyer held up the Albuquerque Aerostat Ascension Association and the AAAA Education Foundation and the Aircraft Owners and Pilots Association and its AOPA Safety Foundation as a potential models of how the BFA might be split up. Several years ago AAAA split off its education committee into a separate 501(c)(3) organization. This allowed AAAA to continue as a social club. The education foundation conducts seminars and accepts charitable contributions. Likewise, AOPA setup their Safety Foundation as a tax exempt educational organization so that it could accept charitable donations.
In both of these cases the two separate groups work closely together, toward a common cause. The Competition Division has shown little interest in being an integral part of the BFA. The failure to confer with the BFA board regarding the distribution of $70,000 is a prime example of lack of communication.
The original idea of division status was to give as much autonomy as possible, allowing the division to conduct its own business. The understanding was that this would free up the main board's time to address the other important issues which confront ballooning.
Good idea. But, a division is a part of the whole. The two parts should be working, and communicating, for the advancement of the sport of ballooning as a whole. In the current BFA model that has seldom happened. The most recent example, the mailing of $175 checks to individuals, representing a fraction of the BFA membership.
The right to conduct a national championship and send representatives to world events is granted to the BFA by the National Aeronautic Association, the national aero club. The NAA is the U.S. representative to the Fédération Aéronautic Internationale, the world governing body for records and championships. This is a valuable franchise, one the current competition division would like to take with them.
While a divorce of the BFA and its current competition division could take several forms, the fact remains that a fractured whole would be less than the sum of its parts. What would result is two organizations competing against one another. One supposedly focused on education and the other on competition. In reality every aspect of ballooning is closely interwoven. Federal regulations, landowner relations, training, education, safety, you name it. Addressing these many facets requires an organization with committees. To run any organization requires staff and an office. To help support the infrastructure requires members. Why have two organizations competing against one another for membership and financial resources?
The answer is not a divorce. The answer is the BFA board bellying up to the bar and exercising control as rightful stewards of our sport. Making the entire organization work toward a common goal. Using its resources to achieve the purpose for which the organization was founded - to promote the advancement of sport ballooning and the promotion of ties among aeronauts the world over.
Competition is one element of the BFA. The wide range of interests of the BFA's nearly 5,000 members should not be subjugated to a minority representation of less than 600. The board needs to address the needs of the entire organization. Rein in, if necessary, subparts that are not acting in the best interests of the BFA.
The majority of the current BFA board has lost sight of the fact that they serve a broad constituency. Their stewardship of the organization should not result in breaking it up and giving away a valuable franchise. Rather, the board needs to come to grips with why the BFA exists and make sure all parts are working in harmony toward that mission.
Tom Hamilton
Editor