President's Message
Where We Stand on Finances
I want to start with finances, because I know the subject is on the minds of many members and because I would rather you hear it from me directly.
As I shared in August, the organization remains well reserved and carries no external long-term debt, but recurring operating deficits and reserve drawdowns require disciplined action. That discipline is what the Board and staff have been focused on since the 3rd Quarter Board meeting.
The Board of Directors sets the budget, and the Finance Committee has been meeting regularly with staff to review results, forecasts and reserves. In early September, the officers called an additional Board meeting so directors could review the current status of 2026 and the proposed 2027 budget in full ahead of final action.
The proposed 2027 budget is now under review by the Finance Committee and will ultimately be reviewed by the Board at its November meeting. What I can tell you now is that the proposal makes real cuts in expenses while taking an honest look at our revenue streams and at the profession at large.
On the expense side, the proposal reduces travel and outside services and trims other nonessential spending. It also reduces the cost of our own governance. If the proposed budget is approved, the Board would have fewer in-person meetings and committees will meet virtually rather than in person. These proposed changes are in addition to changes already made by Acting CEO Jim Slawnikowski to reduce operating costs. If we are asking staff and members to do more with less, volunteer leadership should lead by example.
On the revenue side, the proposal takes a realistic view. The profession continues to face long-term demographic pressure, with a declining active appraiser population and a smaller dues-paying base than in prior years, and the 2027 membership assumptions reflect that. Education revenue assumptions reflect actual performance over the past two years and the marketing support now in place, with the goal of entering 2027 with a budget the organization can deliver on.
I know some members feel the Board should be doing more or moving faster. I understand that. The Board is engaged, the Finance Committee is doing the work, and the decisions ahead are being made deliberately and with full information. As the budget moves toward final action, I will keep you informed. Please watch for the Board “report out” following the 4th Quarter meeting.
Governance Reform
The Task Force, in place since May 2025 with its scope expanded last November, has worked through the year with outside counsel on board size, board composition, director terms and qualifications, and the election process. The Board discussed these items at length at an additional meeting on July 31 and again at the 3rd Quarter meeting in August. Since then, the Board has finalized the proposed bylaws amendments, which were released to members on September 16 with the required notice period. Member feedback is being collected through November 1, and the Board will take up the amendments at the 4th Quarter Board meeting or at an earlier special Board meeting.
In broad terms, the proposal moves the Appraisal Institute to a smaller Board of Directors. It creates a Regional Council that elects the at-large directors, sets three-year director terms with term limits, and requires region committee service before national board or officer service.
The intent is a governing body that is smaller, more accountable and less costly to operate, with clearer terms and multiple paths into leadership for members who want to serve. These are significant changes, and they deserve careful review by the membership. I encourage you to read the proposal, attend your regional and chapter sessions, and share your feedback. Also, we will be scheduling an information session that all members can attend, similar to our quarterly report-outs following each regularly scheduled Board of Directors meeting. This will be held on Thursday October 29, so please be on the lookout for more information on that. The Board will consider all input received before taking final action.
Onward and Upward
While the Board works through these decisions, good work continues across the organization. Here are a few things to look forward to.
Celebrating our volunteers. Volunteers are the heart of the Appraisal Institute, and we are relaunching Volunteers of Distinction to recognize them. Each quarter we will honor members who go above and beyond. If someone comes to mind, I encourage you to nominate them here.
See you in New Orleans. Planning is well underway for the 2027 Annual Conference, April 26-28 at the Hyatt Regency New Orleans. Watch for registration details coming soon.
UAD 3.6 is almost here. UAD 3.6 becomes mandatory for GSE-backed residential lending in November 2. Fannie Mae and Freddie Mac recently announced that some lenders may continue using the current format through May 2027, but the mandate itself has not changed. I encourage you to keep preparing. Our URAR companion courses and "Countdown to UAD 3.6" webinars are available now to help.
Thank you for your continued support and commitment to the Appraisal Institute. I will have more to share as these efforts move forward. If you have questions or concerns, I want to hear them. You can share by emailing 45daynotice@appraisalinstitute.org Wishing you a great start to fall!
Michael J. Acquaro-Mignogna, MAI, SRA, AI-GRS
President
Appraisal Institute