Profitable for only few, built on volunteer workforce
Toastmasters has a very unique business model. The volunteers (club, area, district level) are the driving forces to convert, sell membership. For their efforts, the volunteers receive ribbons , no financial awards.
The management of Toastmasters International (TMI) are overpaid. TMI headquarter also made a wrong decision to push “failed” Pathway.
The CEO voted his salary 500 000$ yearly.
Understand what happened since Pathways
Toastmasters membership enjoyed a steady growth since 2011.
There is start of a decline in 2019( yes COVID-19 happened) . The manual Competent Communicator was discontinued in 2019. After this , it only forced former members to leave for alternatives such as Agora Speakers
Pathways was introduced in 2018. Not everyone adopted it far from it. One theory is that in order to access Pathways , you must continuously pay your membership. On the other hand, once you have your book , you don’t have to continue to pay membership. The membership plateaued until 2020.
Competent Communicator (CC) manual was discontinued in 2020. The decline starting from 2020. Covid played a minor role compared to Pathways.
Pathways was introduced in 2018. Not everyone adopted it far from it. One theory is that in order to access Pathways , you must continuously pay your membership. On the other hand, once you have your book , you don’t have to continue to pay membership. The membership plateaued until 2020.
Competent Communicator (CC) manual was discontinued in 2020. The decline starting from 2020. Covid played a minor role compared to Pathways.
There is SO MUCH emphasis put on club growth and starting new clubs, as their only goal is to increase revenue (much of which local clubs will never see a dime of assistance for).
The new member fees were pushed thanks to the emphasis to put on creating new clubs. But in 2020 many of these newly found clubs folded.
More over the CEO Daniel Rex and board awarded themselves a big rise bump.
Daniel Rex’s salary ballooned from 349 k$ in 2013 to 582 k$ in 2017 https://projects.propublica.org/nonprofits/organizations/951300076
https://nonprofitlight.com/co/englewood/toastmasters-international
Finance tables
Finance history
| Net Revenue | Expenses | |||
| Years | Membership dues | New member fees | Technology services | Chief executive officer, officers, board |
| 2011 | 15,093,352 | 2537263 | 1,321,129 | 1,307,638 |
| 2012 | 19,437,343 | 2,735,333 | 1,678,932 | 1,678,932 |
| 2013 | 20,497,346 | 2,957,759 | 1,506,812 | 1,809,106 |
| 2014 | 21,848,706 | 3,106,044 | 2,107,265 | 2,309,101 |
| 2015 | 22,967,649 | 3,236,352 | 2,490,575 | 2,341,252 |
| 2016 | 25,145,810 | 3,320,776 | 3,313,931 | 2,331,513 |
| 2017 | 30,057,706 | 3,192,313 | 4,173,098 | 2,652,007 |
| 2018 | 30,253,591 | 2,892,760 | 4,275,332 | 2,547,602 |
| 2019 | 30,547,875 | 4,205,884 | 3,996,061 | 2,220,461 |
| 2020 | 27,816,480 | 2,281,000 | 3,486,177 | 1,547,204 |
| 2021 | 18,795,665 | 1,931,611 | 3,336,209 | 1,722,597 |
| 2022 | 17,266,705 | 2,119,211 | 4,193,280 | 2,219,019 |
| 2023 | 16,777,615 | 2,398,380 | 5,105,883 | |
Finance history
Financial statements history
You can re-check the financial statements