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Opening Session
The conference officially began at 1:30 p.m. on Sunday, April 18, 2004 with a welcome from our chair of the General Service Board, Elaine McDowell. Greg M., the manager of the General Service Office, taking roll call, followed this. The first order of business was to approve Conference rules of order and conduct, making it easier for the Conference to conduct its business, allowing the Conference to do what it needs to do to carry out the will of the Fellowship by reaching an informed group conscience.
Mark G., delegate chairperson, shared a greeting presentation getting us started on the right foot. He shared, "The journey we take this week will not always be easy - and at times it may not even seem very spiritual. But during this upcoming week, as we conduct the business of Alcoholics Anonymous, we will experience how God, as we understand him, speaks to us through the group conscience. I am confident that together, with God's help, we can use the principles of this program to find the best solutions for the items that our Fellowship has asked us to consider. Someone once told me that A.A. is not a business that has a spiritual aspect. It is a Spiritual entity that has to conduct some business. I think if we keep that in mind throughout the upcoming week, we will be well on our way to carrying out our duties and serving our fellow alcoholics."
Opening Dinner and A.A. Meeting
My husband, Terry, accompanied me this year as my guest. Sunday evening we attended, at the invitation of the Trustees of the General Service Board, an opening dinner followed by an A.A. meeting. Several past GSO staff attended, as well as Trustees Emeriti, and a few friends of A.A., which included members from the Board of Narcotics Anonymous. An open A.A. meeting followed the dinner with five A.A. speakers, Don A., Hawaii; Marie H., NW Ontario; Robin B., Grapevine staff; Paul C., A.A.W.S. director; and Arnold R., trustee. It was a great meeting and to top it off, Earl F., delegate from Montana and the West Central Region, chaired the meeting.
Monday afternoon we were fortunate to hear Board Reports from the General Service Board, the A.A.W.S. Board and the Grapevine Board. We also had a Presentation/Discussion on Finances from the Trustees' Finance and Budgetary Committee.
General Service Board Report: Elaine McDowell, (Class A Trustee) Chair
Elaine shared that on behalf of your trustees, her report would reflect our respect of A.A.'s primary purpose as vital to A.A. unity, and the assurance that A.A.'s simple message is available to alcoholics everywhere.
Since the 53rd Conference the board has hosted Regional Forums in Grand Island, NY; Columbus, Indiana; Minot, South Dakota; Kansas City, Missouri; and Grande Prairie, Alberta. Special Forums were held in Smithers, British Columbia; and Hawaii, where we visited the islands of Kauai, Maui, Oahu and Hawaii. Suggestions to encourage attendance and better participation at Forums are always welcome.
Five new trustees were welcomed to the board last year: Herbert Goodman, Class A, and four Class B trustees: Murray McI. as trustee-at-large/Canada; general service trustee Arnold R.; and regional trustees Gary K. and Michael P. Three trustees will rotate at the end of the conference this year: Ric D., Ted S., both Class B and George Vaillant, Class A. Each one represents outstanding service and sacrifice on behalf of the Fellowship.
Internationally, A.A. continues to dramatically grow. The first Sub-Sahara (African) Service Meeting was held in South Africa last June, with G.S.O. general manager, Greg M., and Adrienne B., staff member on the International assignment, present. Adrienne and Greg also attended the 5th Asia-Oceanic Service Meeting in Hong Kong. Adrienne and Elaine traveled to the Planning Meeting of the World Health Organization (W.H.O.) in Geneva, Switzerland. Last November, Greg and Elaine were guests of the General Service Board of A.A. in India. Adrienne, Greg and publications director, Chris C., responded to invitations to visit A.A. in Columbia, Nicaragua, Paris, and Vienna, where they shared information on licensing, distribution, copyrights, and production of A.A. literature. The three also attended the 12th European Service Meeting in Frankfurt, Germany. We travel to all these countries at their invitation and request for our sharing of experience, strength and hope, not only in recovery, but our service structure as well.
Many of you are aware that several years ago a German citizen undertook to publish and distribute several Conference-approved books and pamphlets, first in Germany and then in other countries, without permission from Alcoholics Anonymous thus violating copyright protections. Our first contact with him was in 1993, and for more than four years we, and the General Service Board of A.A. in Germany, used every possible means of communication to reason with him in asking he cease publishing our copyrighted materials. In 1997 we realized we had exhausted all avenues of reason and/or negotiation. The German General Service Board and A.A.W.S. initiated legal proceedings in Germany that sought to prevent further publication and distribution of unauthorized literature. In 1999 the German Court of Common Pleas ruled for the plaintiffs, the German Board and A.A.W.S. The defendant appealed the ruling, thus forcing a process that absorbed energy and resources over four more years.
In October of 2003, the Court of Appeals in Frankfurt decided the matter in favor of A.A., represented by the German General Service Board and A.A.W.S. The defendants claims were not allowed, and the court directed that he cease producing and distributing Conference-approved books and pamphlets in any language. The court affirmed the validity of copyrights held in trust by A.A.W.S., and recognized Bill W. as author of Alcoholics Anonymous, A.A.'s basic text.
The German Court decreed that the defendant must reimburse A.A.W.S. and A.A. in Germany for legal expenses, including attorney fees. Early this year, A.A.W.S. and the German General Service Board offered the defendant an opportunity to forgo reimbursement of legal costs and fees provided the defendant does not publish or distribute Conference-approved literature in any language or country, now or in the future. The defendant has not responded to our offer; therefore, we have asked that the defendant fulfill remedies stipulated in the Court's final order of October 2003.
More information about this can be obtained from Elaine's written presentation along with a supplement and addendum she provided to the conference titled, "Alcoholics Anonymous: Our Name and Our Message," and "Challenge to A.A. Unity and Legacy." (these documents are available on the area website and via CD).
Alcoholics Anonymous World Services, Inc. (A.A.W.S.) Board Report: Dorothy M., Chair
Dorothy reported that the A.A.W.S. Board met seven times since the 2003 conference to receive G.S.O. management and staff reports; review progress on implementation of Conference and board actions; consider financial reports; review publishing operations, price new or revised publications; receive updates on essential group services; consider requests from A.A. members and non-A.A.s for permission to reprint A.A.-copyrighted literature; and address matters of G.S.O. administration.
Some statistical information: During 2003, a total of 1,169 new groups were registered with G.S.O. G.S.O. welcomed 1,600 visitors in 2003, plus 15 groups of 10-50 members - some traveling great distances to spend a day in their office. Other special guests were: the director of publications from the General Service Office in Tokyo; the general secretary and general secretary elect for the Great Britain G.S.O.; two officials from the White House Office of National Drug Control Policy; the U.S. State Department coordinated a visit by health-care professionals from Azerbaijan; and in December 2003 G.S.O. hosted the Annual Day of Sharing with staff from the National Council on Alcoholism and Drug Dependence (NCADD) and the Al-Anon Family Group Headquarters.
A.A.W.S. directors and G.S.O. staff participated in the five Regional Forums held last year, as well as the two Special Forums. Staff also attended the 18th Annual Intergroup Seminar held last September in San Diego, California; the 50th Anniversary Convention of Narcotics Anonymous (N.A.) in San Diego in July; and the 13th Annual International National A.A. Native American Indian Convention held in Burbank, California last October.
After lengthy and thorough discussion, the A.A.W.S. Finance Committee recommended that prices of the various formats of Alcoholics Anonymous, our Big Book, be restored to their pre-Fourth Edition levels. These prices will take effect July 1, 2004: hard cover will increase $1.00 from $5.00 to $6.00; the portable/soft cover from $4.60 to $5.60.
The first Tri-lingual (English/French/Spanish) Literature Catalog was produced and mailed in July 2003. FYI: the official language of the General Service Conference is English, French and Spanish. The Spring/Summer 2004 catalog distributed in March included a new Special Needs section.
The board approved requests for translation and publication of five pamphlets (the first ever) in Mongolian; the Twelve Steps and Twelve Traditions in Swahili; and the pamphlet "A Newcomer Asks" in Simplified Chinese. Cambodian translations of our Big Book were shipped to Cambodia. Living Sober in Latvian was completed in time for the celebration of 15 years of A.A. in Latvia. Translations of literature into several languages of India have been approved.
Permission has also been granted for other foreign language translations. The Icelandic Big Book is being published in Iceland; Germany is publishing Bill's Own Story; Italian translations of Daily Reflections and As Bill Sees It are being published in Italy; Portuguese Daily Reflections will be published in Portugal; and Lithuanian pamphlets have been approved for publication in Lithuania.
The board approved a request from the General Service Office in Peru for a $5,000 loan from the International Literature Fund to set up local publishing operations to facilitate distribution of A.A. literature in that country.
The board also approved a request from the General Service Board of Nicaragua for a loan not to exceed $6,500 to be used to set up literature inventory, as well as shipping and handling costs.
If you are interested in knowing more about the International Literature Fund (ILF), a presentation from the G.S.O. Manager can be found in the 2002 World Service Report.
At year-end 2003, G.S.O. had 76 full-time employees, plus 7 part-time/students. The Biennial Staff Rotation was accomplished last June rather in September, as has been the practice. This change was essentially made so staff would be rotation into their new positions on trustees' committees (with respect to their office assignment) the same time as trustees' rotated into their new responsibilities. So, basically everyone is then rotating at the same time for a smoother transition. This change has worked well. Last October we welcomed a new G.S.O. staff member Irene K., assuming responsibility for the Treatment Facilities/Loners Internationalists assignment.
The Blackout of 2003 (electrical system failures in the northeastern states) caused the General Service Office to close for a day. Several days of disruption was caused to our Local Area Network (LAN) due to viruses uploaded during reconfiguration of our systems. Consequently, we have added several items to our Disaster Recovery Plan that continues to be refined, and expanded to include Emergency Response Planning so the focus is on the entire office structure, including protection and recovery of information technology.
A.A. Grapevine Board Report: Richard (Dick) G., Chairperson
Dick reported that the A.A. Grapevine Corporate Board met eleven times since the 53rd General Service Conference. There are nine Grapevine corporate directors: five trustees, including two general service trustees, two regional trustees, and one Class A (nonalcoholic); three non-trustee directors; and the executive editor. The board elected Dorothy H. as a non-trustee director to fill the position when Susan C. rotates from the board this April after four years of service. Thank you Susan! The board also forwarded the name of general service trustee David E. to succeed Dick as chair of the Grapevine Corporate Board following the Conference. Northeast regional trustee, Michael P., will fill the vacancy left when Dick rotates in April of this year.
A new Executive Editor, Robin B., has been named for the A.A. Grapevine. Robin has been serving the A.A. Grapevine as Senior Editor since June 2000. Robin began her new position effective March 1, 2004.
The exciting news from the A.A. Grapevine is the profit of $5,366 for 2003. It has been ten years since that has happened. The pass-through costs of postage to subscription rates is helping the bottom line. I have complete historical data for income and circulation of the Grapevine since 1951 if you are interested in comparisons over the years.
Average paid circulation for the A.A. Grapevine for 2003 was 112,614, down from 115,573 from last year. Average paid subscriptions for La Vina were 9,222 compared to 8,999 last year. Overall results show a net loss for La Vina of $111,638 for 2003 compared to $103,820 in 2002. Since 1995, the La Vina project has incurred start-up costs/operating losses of approximately $779,744.00.
Two new books were published by the Grapevine last year - Thank You for Sharing: Sixty Years of Letters to the A.A. Grapevine and Spiritual Awakenings: Journeys of the Spirit from the Pages of the AA Grapevine. These publications contain articles published in the Grapevine over the years, reflecting a wide range of A.A. experience.
The Grapevine has recently redesigned its Web site. Now know as AA Grapevine Online! still at www.aagrapevine.org. It offers more stories, more humor and more information about the Grapevine, La Vina, and Alcoholics Anonymous. The exciting addition to the Web site is access to the NEW AA GRAPEVINE DIGITAL ARCHIVE where you will be able to find a collection of more than 12,000 Grapevine stories, thousands of letters, General Service Conference and International Convention reports, history of the Steps, Traditions and Concepts, six decades of sharing on singleness of purpose and other vital topics to A.A., and, of course, hundreds of cartoons and jokes, plus a whole lot more.
Access to the Digital Archive, via www.aagrapevine.org, will begin in June of this year free to everyone for the month. Starting July 1, 2004 the subscription process will begin.
Did you know the A.A. Grapevine has been continuously publishing our magazine every month since the first issue in June of 1944? Happy 60th Anniversary!
Finances: Presentation/Discussion - Vincent Keefe, (Class A Trustee), Chair, Trustees' Finance & Budgetary Committee
At last year's Conference Vincent reported that G.S.O. expected a loss from operations for 2003. Actual loss for 2003 was $645,160, a substantial improvement from the budgeted loss of $950,845. This was due to net revenues being $75,000 better than expected (although Fourth Edition Big Book sales were less, sales of the new book Experience, Strength and Hope were strong) and expenses about $230,000 less than budgeted.
Revenue for A.A.W.S. essentially comes from two sources: contributions and literature sales.
Contributions received from groups and members for 2003 were $4,997,400. This includes contributions from 25,400 groups, individuals and service entities. That represents 44.7% of the 56,904 groups registered with the General Service Office.
Net sales of literature were $10,460,500 with a gross profit of $4,706,250 after printing and manufacturing costs, shipping expenses and royalty payments are deducted. This brings total revenue for 2003 at $9,809,800.
Total operating expenses for G.S.O. during 2003 were $10,454,900 resulting in an operating loss as mentioned above of $645,160 for the year. Note: These figures reflect the combined results of G.S.O. New York and the SMAA Office in Montreal. Effective January 1, 2003, the SMAA office was closed (cost effectiveness) and the French-speaking A.A. members are being serviced from G.S.O. in New York.
The Reserve Fund for Alcoholics Anonymous at the end of 2003 stood at 9.7 months verses 11.2 months ending 2002. The Conference-approved limit is 12 months of combined G.S.O. and Grapevine operating expenses. At $9,730,900 the Reserve Fund amounts to $167 per listed A.A. group. Contributions per group averaged about $89.00 for the 56,904 groups registered, while expenses to support service to the groups in 2003 were $125 per group. (Keep in mind that only 44.7% of the 56,904 groups registered with G.S.O. contribute to G.S.O. The rest of the A.A. groups registered or not registered are getting services from G.S.O. without contributing to the operating expenses).
The 2003 service dollar was spent on the following activities: Group Services 34.8% (which includes the Group Services assignment; Box 4-5-9; A.A. Directories; records and files; contributions processing; and French services); the General Service Conference, 13.7%; Loners, Internationalists, and Overseas Services, 9.7%; Trustees' and Directors' activities, 6.7%; Regional Forums, 7.1%; Archives, 9.2%; C.P.C., 5.5%; Spanish Services, 1.8%; Public Information, 5.2%; Correctional Facilities, 3.7%; and Treatment Facilities, 2.0%.
Although contribution revenue has had a slight favorable upward turn in the last several years, sale of books and booklets has flattened or dropped. After reviewing financial matters, our trusted servants recommended a restoration of the price of the Big Book to $6.00 effective July 1, 2004. (Note: the price of the new Fourth Edition Big Book was set at $5.00 when released with the goal of reducing the Reserve Fund and that was accomplished).
Keep in mind that G.S.O. and the Grapevine, Inc. are continually exploring ways to reduce costs of operations, as well as assess the services we provide. As a fellowship we also continue to strive to have literature available in the Spanish and French languages as well as English. Lower print runs in those languages do result in higher production costs since we try to maintain similar selling prices of this literature regardless of our manufacturing cost. This results in lower overall gross profit margins.
Vincent raised some very important questions during his finance presentation. His presentation centered on "Are we focusing on the right question?" He pointed out three trends currently taking place in A.A.
Trend #1
Group contributions have stopped growing, essentially flat in the last three years. It was noted that contributions stopped growing at about the same time we reduced the price of the Big Book to lower the prudent reserve. Has the message of an excessive Reserve Fund been interpreted as a declining need for contributions? If so, what will happen as operating expenses continue to increase due to inflation? Will we be forced into a cycle of needing to continually increase literature prices as a way to balance the operating budget? What actions should we take? My additional questions are: How do we get more groups to contribute? What services do the groups/fellowship want from GSO?
Trend #2
Grapevine magazine subscriptions continue to decline, therefore the Grapevine is becoming more dependent on developing additional income from other literature items to balance the operating budget. The 2002 A.A. membership survey totaled over 1.2 million members in the U.S. and Canada, yet March 2004 Grapevine subscriptions totaled a little over 91,000, 7.2% of our membership. Because of our focus on other literature sales for the Grapevine, are we starting to lose focus on the primary purpose of the Grapevine magazine? Is the Grapevine "fading away" right before our eyes? Have we become complacent?
I have a couple questions of my own on this as well. Does the fellowship really want the Grapevine? If we do, why don't we support it? If we don't, why do we keep producing it?
Trend #3
We continue to focus on the management of our reserve fund to keep it in range of 9-12 months. The means by which we do this is through literature pricing. The course of action we took a few years ago was reducing the price of the Big Book and it worked exactly as planned reducing the fund from 11.6 months to 9.7 months. Now we see a different situation developing with the fund starting to head below the acceptable range, so we are increasing the Big Book price up $1.00 to reduce deficits. While our processes are efficient and keep finances in balance, could we be focused on the wrong objective? Is our objective to balance the finances or is our objective to "reach out to the still-suffering alcoholic?" Would we reach more suffering alcoholics if we focused more on the service work and less on the prudent Reserve Fund?
Professionals currently estimate 20 million people in the U.S. and Canada suffering from alcohol dependency or meet diagnostic criteria for alcohol abuse disorder. Would more service work increase our reach? What if this topic were a Fellowship-wide discussion?
Are we focusing on the right question?