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A look inside IICRC's bank account

Discussion in 'Cleaning News' started by Rob Allen, Apr 18, 2012.

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  1. Rob Allen
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    This was removed by another forum for being too controversial. Found it interesting. What do you think?;

    The following links will allow you to download the 990 Report Forms for IICRC (4 Years) and Connections (2 years) The forms that are earlier than 2007 are not detailed enough to ascertain anything and Connections have not filed any past the last two years, even though they were required to do so. Keep in mind that Textile Consultants is Larry Coopers company and Kenway Consultants is Tom Hill's company.

    Perhaps after reviewing these documents, those who would like to can post their comments.

    IICRC

    http://dl.dropbox.com/u/10890298/IICRC Financials.zip

    Connections

    http://dl.dropbox.com/u/10890298/Connec ... 008-09.zip

    I am looking forward to your comments

    Fritz Thompson
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    Rob Allen, Apr 18, 2012
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  2. ronman
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    It's public records, why would they remove them?

    Major cash cow.
    ronman, Apr 18, 2012
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  3. TheEyeball
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    Can someone Cliff Notes this for me? I want to get mad about something today but I can't read all that.
    TheEyeball, Apr 18, 2012
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  4. crash1big
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    2.2 mil for consulting? I wanna be a consultant! Holy cow! moooooooo......:)
    crash1big, Apr 18, 2012
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  5. Torrey W
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    I can't open it with my iPhone.

    Can someone break it down for me Chuck Violand style?
    Torrey W, Apr 18, 2012
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  6. Joseph Rogers
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    They're making stupid crazy money, and not doing anything with it to bolster the industry.
    Joseph Rogers, Apr 18, 2012
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  7. Torrey W
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    Shocking...

    Story of America.

    They didn't get rich off me, so who or how are they getting so much revenue?
    Torrey W, Apr 18, 2012
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  8. brian3180
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    This is nothing new. It's the American way. They have strength in numbers and I am sure they use the fact that "thousands of cleaners and restorers come to them" for education. Gives them the "credibility" to consult huge firms and charge huge consultating inspection fees.
    brian3180, Apr 18, 2012
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  9. Dbonezny
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    I'm sure most of it goes to salaries and things like boats and h***
    Dbonezny, Apr 18, 2012
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  10. Rob Allen
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    Me too! One of the rumors that caused the new take over was that board members were hiring family members as consultants. Making well into 6 figures.
    Rob Allen, Apr 18, 2012
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  11. Rob Allen
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    2-5 million would go a long ways to making tv and magazine ads to promote our industry. Most don't think of us as a legit industry. So most give to change that. Lot of good it did.
    Rob Allen, Apr 18, 2012
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  12. barefoot
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    while I agree w/ you guys that it is mostly a waster of time and money to be a member......I'm not so sure we should rush to judgement about this 2.2 mil consulting thing is a scam.

    It says "administration" fees in the report I looked at. I would like to hear their side of the story as well.
    barefoot, Apr 18, 2012
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  13. TheEyeball
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    Making money isn't evil, but abusing funds is. It's hard to tell what's what so I'll reserve judgement. If you look at the board of directors there are a couple of last names you see on the list more than once. If the people are qualified, no big deal. If it's nepotism that's a problem. But how would you ever prove it?
    TheEyeball, Apr 18, 2012
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  14. ctech
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    How can you spend over 2.2 million on consulting & only 237k on public relations/ marketing (guarantee this money only went to marketing carpet cleaning companies)? it seems to me that this number should be the other way around and spend 2.2mill on public relations/ promoting our industry.
    ctech, Apr 18, 2012
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  15. Joseph Rogers
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    TV and magazine ads should only be a portion of it. There needs to be a major push on the web, though.
    Joseph Rogers, Apr 18, 2012
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  16. ayetti
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    That is hilarious, their website is a TRAGEDY! I am actually getting really tired of going to my local suppliers and getting the hard sell on taking IICRC/CleanTrust classes. I think it is people like my local interlink that make them a lot of their money (he is well intentioned I am sure, but he just doesn't realize there are a lot of options out there as far as learning the business now) I am sure in 1985 you would have no way of learning without taking there classes.
    ayetti, Apr 18, 2012
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  17. Scott W
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    The 2 million "consulting fee" is actually the expense of running the IICRC. This covers renting the office building, the equipment, the salaries of several people that work in the office, office supplies, utilities and whatever else goes into running the business.

    This is the continuation of a longstanding contract that was in place decades ago. The actual day to day operations of IICRC is all contracted out to a company (Kenway Consultants) that runs the operation. They do it for a percentage of the income. I think it is close to 50%.

    The remainder of the funds are spent at the direction of the board of directors. This includes marketing and whatever else.

    The largest other single expense is for hiring a consultant that made sure the standard got written, shepherding the process, rounding up volunteer experts to work on the standards, for some of the standards fighting legal battles and so forth.

    Another large expense is a legal consultant for everything that gets done.

    Volunteers who are working on standards travel to meetings at their own expense. IICRC picks up meals and in some cases hotel expense. Most meetings are done via internet, but you have to get the committees together a couple of times per year.

    One large contract for consulting was done without a id process. That has gotten some attention. However, it is hard to find a person who knows the cleaning industry well and also knows the process for making a standard comply with official ANSI regulations so that the standard can be an ANSI standard.

    Although a lot of people talk about how they would so something differently, actually finding volunteers who will commit to working several hours per week for a year or more to write a standard is very difficult. Finding the volunteers is almost a full-time job when it is time to start writing or revising a standard. The ones writing the standard must represent all portions of the industry - for example carpet manufacturers, fiber and dye makers, carpet installers, folks who represent HWE but also foam and shampoo and encap and...

    I have served as a volunteer writing water damage standards, carpet standards, writing exams, with some input on upholstery and mold as well. Got my room paid for two nights and several meals over the last ten years.
    Scott W, Apr 18, 2012
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  18. TheEyeball
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    Great. Now I know our industry leaders are unpaid schleps who get a free meal at Ruby Tuesday once in a while. I want some credentials, I want some accountability, and I want some transparency before I get involved. I might get "certified" for completely selfish reasons but this is a joke otherwise. EYEBALL definitely still flying solo.
    TheEyeball, Apr 18, 2012
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  19. jaymark1
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    This is far less entertaining then Berkshire Hathaways annual report but I found it a really interesting read.

    The marketing director sure earns a good deal of money, what his does I have no idea.

    Great post ROb!
    jaymark1, Apr 18, 2012
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  20. crash1big
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    Well they won't be getting any of my money any time soon. :)
    crash1big, Apr 18, 2012
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