Timing of collection of annual member subscriptions being passed through by branches or invoiced directly for NSW members, and deferral of that income until services are delivered across the course of the year for that annual subscription.

More member fees were collected in May/June before the end of tax year. Additionally, NSW members invoiced directly for the first time.

Not for profits have no legal or governance mechanism through which to disperse dividends to members. The ADA works to protect members from fee increases by:

• managing costs

• growing non-member revenue,

• holding member fees steady and

• making measured investments against a solid forward-looking strategy informed by honest appraisal of the profession’s future directions, and a robust evidence-based understanding of our current and prospective member needs.

In the FY24-25 year, the Board delivered a $1.36 m surplus to invest in building a sustainable, future fit ADA that will deliver long term financial sustainability and a stronger value proposition for existing and future members.

It is important to compensate directors for:

• the time to carry out their ADA duties

• the loss of revenue associated with that investment

• the legal risk they carry in those duties.

There is a significant time commitment for board members including preparing for and attending board and board committee meetings, including time away from work and home, media commitments, and other face-to-face duties. These are often at short notice.

We have tested the arrangements for reasonableness using external benchmarking of Not for Profit, listed companies and similar-sized organisation, and through independent advice provided to the Nomination and Remuneration Committee, comprised of four branch representatives and one board director.

According to the AICD Director Remuneration Report 2025, the number of paid directorships in the NFP sector has doubled in the past decade, reflecting the growing demands on directors’ time and expertise. Remunerating directors is consistent with this trend and acknowledges the professional responsibilities, fiduciary duties and workload required to effectively govern a modern NFP organisation such as ADA Ltd.

No fees increased this year.

Some NSW members told us during the renewals process that they believed the federal fee had increased, however that was not the case. In the case of NSW members, they had to pay two separate fees for the first time this year, but the Federal fee remained the same.

Our strategy this year is to diversify revenue streams for ADA and grow non-member revenue, which would result in lower member fees in future.