The 2019 tax returns of the American Society for Quality (ASQ) show the organization registered a $2.3 million loss, while increasing executive bonuses and paying millions to marketing firms tasked with improving membership rolls.
The filing for 2019 showed ASQ losing money in key revenue silos. Membership dues lost over $530,000 since 2018, while training fees dropped over $870,00 and royalties lost a massive $1.2M. There was a $734,000 increase in certification revenue, but this was offset by the payments made to two consulting firms — Prometric and Marketing General — whom ASQ doled out a whopping $2.4 million in fees. As a result, the certification revenue was likely still operating at an overall loss.
The dismal picture did nothing to stop ASQ executives from continuing their practice of awarding themselves higher salaries and increased bonuses.
Former CEO William Troy only completed a partial year in 2019, and yet pulled in more income than in 2018. Troy’s overall haul for 2019 was over $553,000, and his annual “other reportable income” skyrocketed from $14,652 in 2018 to over $122,000 in 2019.
New co-CEO and ASQ General Counsel Ann Jordan not only saw an increase in her overall take from $194,930 to $237,826 but also saw her annual bonus jump five-fold, from $7,969 to over $43,000.
James Templin, the other senior exec, saw his annual take increase from $222,229 to $237,154 and increased his bonus by $9,000 over the prior year.
HR Director Lindsey Linder saw a drop in her annual pay, from $212,194 in 2018 to $179,562 in 2019.
On the “good works” side of the ledger, ASQ showed an increase in its miserly practices. Whereas in 2018 the organization donated a paltry $10,400 in donations and $20,000 in scholarships, under Jordan and Templin the group only awarded $15,000 in scholarships, and made no other donations at all.
The related organizations ASQ China, ASQ Mexico and ASQ India continued to hemorrhage money, as they have each done every year for which they have been in operation.
Despite it being reported that Templin is also CEO for the spinoff organization ASQ Excellence Inc., there are still no official IRS filings for that company available via normal reporting sources like Guidestar or ProPublica. Concerns were raised years ago that Templin may be collecting dual salaries, or may have shifted funds intended for ASQ to the ASQE organization, a possible violation of US tax law.
Scandals and membership dissatisfaction had increased under Troy, who attempted to offset member losses by playing to a largely white membership, and refusing to take steps to diversify ASQ or address reports of racism in his ranks. Under Jordan and Templin, the problems for ASQ have grown worse, with accusations coming from members that the two are breaking multiple laws by ignoring member votes, spinning off the ASQE organization without permission, and lining their pockets as the organization creeps closer to bankruptcy.