HispanicBusiness

The USHCC financial record clearly shows the impact of the organization’s leadership. Former CEO Jose Niño left the chamber in March 1998, timing his exit to coincide with the chamber’s fiscal year (April to March). With his departure and replacement by CEO George Herrera, the chamber’s cash flow switched from positive to negative (see table).

From a boardroom perspective, the year 1998 corresponds approximately to the chairmanship of Colorado entrepreneur Ronald Montoya and 1999 to the term of Texan Massey Villarreal. The improved finances of 2000 occurred under the watch of Arizona’s Ray Arvizu, CEO of Arvizu Advertising, who is again running for the chairmanship at this month’s USHCC board meeting. Since the chamber’s financial filing for 2001 was not available at press time, the numbers reflect only the first few months of Elizabeth Lisboa-Farrow’s two-year term as chairwoman.

To provide a comparison and benchmark for the USHCC’s financial condition, Hispanic Business obtained the Form 990s for the Latin Business Association (LBA), the Hispanic chamber of commerce in Los Angeles. Like the USHCC, the LBA has a volunteer board, a hired staff, and several profit-making events, such as the Latino Business Expo and an annual dinner. So far, the LBA has not engaged in for-profit joint ventures.

From 1998 to 2000, the LBA increased its revenue more than $354,000, while total expenditures increased only $247,000 (see table). As a result, the LBA changed from a money-losing to a solvent organization. Revenue increases came from events ($237,000), a newsletter ($83,000), and membership sales ($18,000).

Like the USHCC, the LBA provided Hispanic Business with the minimum documentation required under law, and it shares financial details only with its board. At the USHCC, however, that policy may be changing. Ms. Lerner and Ms. Newton, the columnists with the American Society of Association Executives, assert that corporate accounting scandals have awakened stakeholders to the need for disclosure in the nonprofit sector, increasing the need for transparent audit committees in a post-Enron world. Currently, the board has a proposal to reorganize its Budget & Finance committee to oversee the chamber’s money-making partnerships and venture capital fund. According to Tom Stahl, the chamber’s attorney, the USHCC plans to open its books soon. In an e-mail to Hispanic Business, Mr. Stahl said the organization "will be accountable to its members and intends to publish its financials in this year’s annual convention magazine." Mr. Stahl’s comments indicate that dues-paying members, sponsors, and others who would like to know how the USHCC gets and spends its money will receive that information at the organization’s convention, scheduled October 16–19 in Los Angeles.

USHCC Finances