FROM: Dr. Philip Day, President and CEO

DATE: May 28, 2008

RE: NASFAA Budget And Member Services

Dear Colleague,

It’s no secret: economic times are tough, especially on campus. After having served for 26 years as a college president, I fully understand how critical every dollar is to your institution. That’s why as NASFAA’s new President and CEO, I have made tightening NASFAA’s budget and identifying new sources of revenue a top priority.

NASFAA has always run on a budget that’s "lean and mean," and within the past year the Association has made even bigger reductions in our operating costs:

• NASFAA moved to a smaller facility where many of the staff members who previously had individual offices are now in shared spaces. In the move we sacrificed a large conference room for smaller committee-sized rooms, which are standing-room only during full staff meetings.

• We expanded our use of telecommuting to reduce office space and resource needs. In addition to our DC-based staff, we now have staff working from home-offices in six different states.

• I have asked our new CFO, Jim May, to scrutinize each recurring expense in our budget to see where costs can be cut. This review has already reduced our banking fees by half. Payroll processing, delivery services, supply costs, and committee-related expenses are now under review.

• We are reviewing our relationships with consultants to ensure we receive the most "bang for our buck." Any relationship that falls short of meeting our tight cost-to-benefit requirements is being modified or terminated.

• All computer and service outsourcing is being evaluated to determine the efficacy of bringing it "in-house."

• NASFAA is buying out certain equipment leases to reduce long-term costs.

• Paper and postage costs are being trimmed and less expensive mailing options are being used.

• Conference calls and other electronic communications methods are increasingly being used for meetings and training to reduce travel-related expenses.