by Tom Hamilton
The recent controversy involving the distribution of surplus funds by the Competition Division of the Balloon Federation of America remains unresolved. As reported last month the BFA President has requested the return of funds from those members that received the $175 checks in April.
On July 27, the BFA Board is to hold a conference call meeting. The main topic is the dissolution of the Competition Division. The primary reason for this action is the Division's refusal to acknowledge that the distribution of approximately $70,000 was not in the best interest of the BFA.
A similar motion failed four to six in May. There is no reason to believe that the BFA Board is any closer to bringing this unfortunate chapter in its history to a close.
There is currently a move to separate the BFA and its Competition Division into two separate organizations. This suggestion was apparently initiated from the dispute over distribution of the checks.
Balloon Life conducted an on the record poll of each of the BFA Board members. Each was asked the following questions:
1. Do you consider the CD Board's action of dispersing $175 to its members in the best interest of the BFA?
2. The current Board of the CD wants to leave the BFA. As part of that divorce they want the right to name the National Champion and send representatives to world events. Are you in favor of dividing the BFA into two organizations?
Each Board member's answer is tallied in a box nearby. Some volunteered additional information they felt relevant to the discussion. Some of those thoughts have been incorporated below.
A committee, formed at the March Board meeting in Phoenix and added to in May, is currently tasked with looking at the BFA organizational structure. Part of what this group will examine is whether the BFA might be split into two entities.
Heart and Soul
The members of the Balloon Federation of America have a wide range of interests which the organization attempts to meet through a diverse array of programs. Those programs, or special interest areas, continue to expand. Recently, several members have been involved with formulating guidelines for a commercial division. This division would represent interests of corporate balloons and commercial ride operators.
For the last six months Board member Earl Miller has been promoting a restructuring of the BFA into five division; competition, gas, junior balloonist, sport, and commercial. The competition and gas divisions currently exist and no change would be necessary. The junior balloonist division would encompass the current program chaired by Tina Reeves. A new commercial division would incorporate commercial advertising balloons and ride operators. The sport division would be a catch-all for all the other programs including safety, education, and a new "sport competition" group.
There is little disagreement that the BFA should rethink how it is organized and how it can effectively serve its members. Members will be asked for their input during this summer's directors election. How to reorganize is likely to lead to a great debate. Beth Wright-Smith is chair of the five person committee tasked with looking at the restructuring. The other team members are Earl Miller, Jim Thompson, Allen Yost, and Troy Bradley.
At this point in time the committee is focusing solely on the issue of the BFA and its competition division.
"I know that people want this resolved immediately but I can't see how that can be done without screwing it up," Beth Wright-Smith told Balloon Life. "I think that we need some cool heads that don't react to the first thing that comes to mind. Everybody needs to sit down and talk calmly. I know the general membership wants answers but we don't have anything to tell them yet."
The competition division appointed Bert Carollo, Ed van de Hoef, David Levin, and Tom Tyler to a committee representing the division in discussions with Smith's committee.
Where did discussion begin to break up the Balloon Federation of America? It all began with the distribution of approximately $70,000 by the competition division in late March. The investigation started by this magazine caused the BFA Board to seek legal opinions and eventually request the return of funds.
The competition division's board refused to join the parent organization in seeking return of the money. Instead, they are now attempting to use the action of distribution of funds as leverage to divide the BFA in two.
Competition chair David Lowe has written an open letter to the BFA president, Rob Schantz, in which he states, "[The competition division] would suggest an option to be considered, with respect to competition, would be a complete separation of the CD from the BFA. This would cleanse the BFA from the CD's actions and remove any activity that in and of itself could substantially threaten the 501c(3) tax exempt status of the BFA.
"If you choose this option we would be prepared to name a three person committee to meet with members of your Board to negotiate an amicable transition to two entirely separate organizations and to thus protect your tax status."
Why form two separate groups? The question is not whether the moneys generated by the division are a liability to the BFA. The question is, what happened to the stewardship of the BFA Board and its division to promote the advancement of sport ballooning?
Competition plays an integral part in teaching better planning and flying skills. If sanctioned events and championships generate significant funds, all the better to help promote the sport of ballooning.
While there is a difference of opinion as to the legality of giving away excess funds it is difficult to understand how this was in the best interest of ballooning and the BFA.
There is a rumor, unsubstantiated, that a financial backer exists to start a professional racing circuit with big money prizes.
So? Having the franchise of naming the national champion along with the right to send representatives to Fédération Aéronautique International events is valuable. It helps to sell sponsorships.
While all this might be pie in the sky, big money events are not. Since the late eighties when the US Nationals began circulating to different cities through a bidding process the prize fund for competitors at the US Nationals has risen to $120,000. In addition, the division takes in $30,000 or more in fees from a National Championship.
What we are really talking about is money, big money. And it is more than just the prize fund. Expenses to put on an event add up to a lot more. Financial arrangements will be the focus of a future Balloon Life article.
Is the idea of a professional balloon racing circuit a bad idea? No. It can be good for ballooning. It can expose the sport to a broader audience, perhaps through television contracts. Does the BFA have to do this? No. Any organization that promotes ballooning is good for the sport.
Over the last 15 years many people have talked about creating ballooning's equivalent to NASCAR, the financially successful car racing group controlled by the French family of Daytona Beach, Florida.
Bill Meadows created the National Balloon Racing Association in the mid 1980s with that very idea in mind. Eventually Meadow's organization floundered and he filed for bankruptcy. Other modest attempts have been made with little financial success.
At present the BFA committee is examining, among other alternatives, splitting off the current competition division. This begs the question, how does the competition division's giving away $70,000 get rewarded by becoming a separate organization?
What is the purpose the Balloon Federation of America?
If is to promote and foster ballooning, then the BFA Board needs to examine how its divisions operate and set forth guidelines for them that accomplish this purpose.
Balloon Life spoke with Roger Barker who was the BFA Board member responsible for rewriting the bylaws in 1986-7 which created the division category.
"I do not remember giving divisions as much autonomy as the present competition division has taken. If I did, it was a great oversight on my part," Barker told Balloon Life.
Mr. Barker's statement and the recent controversy should give the committee looking at reorganization cause for consideration. How should the BFA be structured? Divisions? The root word for "divisions" is "divide." The current model has not worked well. Instead of a cohesive group, there has been fractional in-fighting.
"In all the [BFA Board] meetings Beth [Wright-Smith] has said we [have] got to get along with the CD, we [have] got to get along with the CD... Well the CD represents less than ten percent of the membership. Wouldn't you suggest that they try to get along with us." Charlie Sundquist told Balloon Life. "That has met with cat calls.
"[Someone within the CD] elected to throw the money out the window rather than let the general membership receive any benefit from it," Sundquist went on to say.
How the BFA might be restructured is putting the horse in front of the cart. What the Board needs to do first is to establish its priorities. What are the primary goals upon which the organization wants to focus.
Next the Board can decide the core areas of special interest like safety, education, and competition.
All the areas of special interest, whether committees or divisions, should have a map of what the BFA wants to accomplish. While each area may focus on their special programs, those programs can help to achieve the overall goals of the BFA.
For example, the BFA decides that promoting ballooning is the highest priority. The competition committee/division holds the US National Championship. The primary focus is to hold a fair competition and award prizes. To help meet the organization's goal of promoting ballooning, the competition committee/division has a booth open and staffed to introduce spectators to ballooning. Making that first contact includes providing general information about ballooning, how to get started, local contacts they can make when they get home, and collecting data which can be shared with balloon clubs, instructors, balloon dealers, etc. in that person's local area.
If a BFA committee/division can not work toward the benefit of the whole, then why have the special interest area?
The Competition Division has a history of not cooperating with its parent, the BFA. For a number of years financial statements were not provided to the BFA. The current financial audit has been delayed because all necessary documents were not turned over in a timely manner. An extension of the organization's 1997 tax return has been filed because financial information has not been submitted by the Competition Division in a timely manner.
The late Bill Murtorff was a constant thorn in the side of the CD asking questions that were never answered. Three years ago members of the division raised money to back Murtorff's challenger, Rob Schantz, with a mass mailing to try and silence his voice. In this year's election competition members support is backing Schantz's challenger.
David Rapp, as president of the BFA, attempted to question and rein in the division. Lacking any real support on the board, he was stymied in his efforts. Rob Schantz, the current president, is attempting to make the division accountable to the main organization. The BFA elections over the last three years have changed the complexion of the BFA Board. Schantz almost has enough support to rein in the runaway division that does not think itself accountable to the BFA.
Accusations abound as to whether certain board members should vote on these matters. From the non-elected NAA representative to conflicts of interest that others members may have, the BFA Board has been unable to come to grips with the fact that there is a lack of accountability.
Perhaps it is time for the members to decide whether the current Competition Division should continue in existence. On June 25, this writer filed a motion with the Secretary of the BFA, for consideration at the annual general meeting to be held in Albuquerque, New Mexico, October 3, 1998, to dissolve the division. The text of the motion is in a box nearby.
Motion for consideration by the BFA membership
Motion for consideration at the Balloon Federation
of America's Annual General Meeting to be held in Albuquerque, New Mexico,
October 3, 1998:
The membership of the Balloon Federation of America directs the Board of
Directors to dissolve the Competition Division. The Division is to be reorganized
as a Committee, appointed by the President and confirmed by a majority vote
of the Board. A new Competition Division may be organized in the future
with safeguards that assures full accountability to the BFA Board and requires
the Division to operate in a manner consistent with the purposes of the
Federation.
All equipment owned by the Division as of June 25, 1998 or acquired after that date are to be retained by the Federation for use by the Competition Committee. All monetary accounts held by the Division hereby revert to the Federation immediately and are to be used by and for the benefit of the new Competition Committee.
BFA Board Poll
Vic Fraenckel
1. No
2. I just as soon not answer that question before the Board votes on it. We did vote to request the money back.
Koh Murai
1. No
2. No. I don't think that certain people wanting to leave should impede their progress and the door shouldn't hit them in the ass on the way.
Beth Wright-Smith
1. We have received so many conflicting opinions on whether it was appropriate or not, I have no idea.
2. In some form or another I think that it is necessary. What form it is going to take I don't know.
Rob Schantz
1. No
2. No
Earl Miller
1. No
2. I have been looking at how the BFA can be reorganized based on the Competition Division as a model. This [episode] has blown that out of the water.
Jim Thompson
1. No
2. It is my belief that we can only have one national ballooning organization. We will look at how the organization can be restructured.
Glen Moyer
1. No
2. At this point I would have to say no. I think that eventually it is going to happen.
Allen Yost
1. At this point I do not want to answer that question.
2. I am on a committee that is working on the organization of the BFA and we are working with a committee from the CD.
Charlie Sundquist
1. No
2. No
Balloon Life did not poll Joe Bream, the non-member elected, National Aeronautic Association representative to the BFA Board.
BFA Restructure Committee
Interested individuals may make suggests for the reorganization of the BFA by contacting the following committee members.
Beth Wright-Smith (Chair)
5001 Crownpoint Ct. NW
Albuquerque, NM 87120
505-293-6800 (b)
Earl Miller
PO Box 648
Clemson, SC 29631
864-639-6433 (b)
Jim Thompson
5622 Francis Ave
Des Moines, IA 50310
515-277-1233 (h)
Allen Yost
14544 Avers
Midlothian, IL 60445
708-597-3631 (h)
Troy Bradley
6001 E-2 San Mateo Blvd. #109
Albuquerque, NM 87109
505-332-2829 (h)