The financial review summarizes CrossRef's finances, noting that it has a balanced and sustainable business model, has generated a surplus while investing in services, and has no debt. Revenues are up in 2009 compared to budget and 2008, with membership fees and article deposits being the largest sources of revenue. Expenses are below budget and focused on staffing, administration, and software/data. The finances indicate continued growth and stability.

1. Financial Review
Linda Beebe, Treasurer
Thursday, November 12, 2009

2. Financial Achievements
• Business model: balanced and sustainable
• Generating a surplus for re-investment
• No debt: all start-up loans repaid May 2007
• Clean 2008 audit - Audit Committee
working well
• Policies and procedures have grown with
the organization
Thursday, November 12, 2009

3. Financial Achievements
• Major investment in System Rewrite
• Membership & Fees Committee
undertook complete fee review
• Book deposit fees revised
• Affiliate and CrossRef Metadata
Services fees revised
Thursday, November 12, 2009

4. Financial Goals
• Sustain and invest in core
services – capital expenses for
operations.
• Invest in new services.
Thursday, November 12, 2009

5. Financial Goals
• Retain a minimum of 2 months operating
cash plus next year’s capital spending on
hand at all times.
• Maintain a credit line of $250,000 to support
current operations.
• Establish a cash reserve fund ($.5 million) for
future improvements to the core services.
Thursday, November 12, 2009

6. Revenues: Key Components
$2,993,000 - 2009 YTD
Membership (27%)
Deposits (61%)
Hos6ng, Metadata, Other (12%)
Thursday, November 12, 2009

7. Revenues: Key Components
$2,993,000 - 2009 YTD
$348,000
$808,000
$1,837,000
Membership (27%)
Deposits (61%)
Hos6ng, Metadata, Other (12%)
Thursday, November 12, 2009

8. Expenses: Key Components
$2,555,000 – 2009 YTD
Staffing (51%)
Administra6on (25%)
Data/SoBware (15%)
Travel/Mee6ngs (6%)
New Ini6a6ves / Other (3%)
Thursday, November 12, 2009

9. Expenses: Key Components
$2,555,000 – 2009 YTD
$78,000
$158,000
$382,000
$1,305,000
$632,000 Staffing (51%)
Administra6on (25%)
Data/SoBware (15%)
Travel/Mee6ngs (6%)
New Ini6a6ves / Other (3%)
Thursday, November 12, 2009

10. 9-Month 2009 Highlights
• Revenue: $2,993,000
• $177,000 (6%) over Budget
• $322,000 (12%) over same period
2008
• Expenses: $2,555,000
• $55,000 (2%) under Budget
• $121,000 (5%) over from same
period 2008
Thursday, November 12, 2009

11. Financial Overview
2000-2009 LE
Thursday, November 12, 2009

12. Financial Overview
2000-2009 LE
Income Statements – By Year
3,500
3,000
2,500
2,000
1,500
1,000
$000's
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

13. Financial Overview
2000-2009 LE
Income Statements – By Year
3,500
3,000
2,500
2,000
1,500
1,000
$000's
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

14. Financial Overview
2000-2009 LE
Income Statements – By Year
3,500
3,000
2,500
2,000
1,500
1,000
$000's
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

15. Financial Overview
2000-2009 LE
Income Statements – By Year 4,058
3,655
3,500 3,452
3,140 3,245
3,000
2,918 2,868
2,500
2,071
2,000
1,500
1,176
1,000
$000's
500 422
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

16. Financial Overview
2000-2009 LE
Income Statements – By Year 4,058
3,655
3,500 3,452
3,140 3,245
3,000
2,918 2,868
2,500
2,071
2,000
1,500
1,176
1,000
$000's
500 422
0
-500 -786
-1,000
-1,499
-1,500 -1,641
-1,881
-2,000 -2,391
-2,624 -2,722
-2,500
-3,250
-3,000 -3,325 -3,495
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

17. Financial Overview
2000-2009 LE
Income Statements – By Year 4,058
3,655
3,500 3,452
3,140 3,245
3,000
2,918 2,868
2,500
2,071
2,000
1,500
1,176
1,000
$000's
500 422
91 254
12
0 -36 -99 -45 -85 -17
-220
-501
-500 -786
-1,000
-1,499
-1,500 -1,641
-1,881
-2,000 -2,391
-2,624 -2,722
-2,500
-3,250
-3,000 -3,325 -3,495
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

18. Financial Overview
2000-2009 LE
Income Statements – By Year 4,058
3,655
3,500 3,452
3,140 3,245
3,000
2,918 2,868
2,500
2,071
2,000
1,500
1,176
1,000 770
521 536
$000's 546
500 422 478 245
257 254 214
91 12
0 -36 -99 -45 -85 -17
-220
-400 -422
-501
-500 -786
-1,000
-1,499
-1,500 -1,641
-1,881
-2,000 -2,391
-2,624 -2,722
-2,500
-3,250
-3,000 -3,325 -3,495
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

19. Financial Overview
2000-2009 LE
Thursday, November 12, 2009

20. Financial Overview
2000-2009 LE
Member Loans & Cash at Year-End
2,400
2,200
2,000
1,800
1,600
1,400
$000's 1,200
1,000
800
600
400
200
0
-200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

21. Financial Overview
2000-2009 LE
Member Loans & Cash at Year-End
2,400
2,200
2,000
1,800
1,600
1,400
$000's 1,200
1,000
800
600
400
200
0
-200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

22. Financial Overview
2000-2009 LE
Member Loans & Cash at Year-End
2,400
2,200
2,000 2,000
1,950
1,800
1,700
1,600
1,400 1,400
1,200
$000's 1,200
1,125
1,000
800
600
600
400
200
0 0 0
0
-200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

23. Financial Overview
2000-2009 LE
Member Loans & Cash at Year-End
2,400
2,200
2,000 2,000
1,950
1,800
1,700
1,626
1,600
1,486
1,400 1,400
1,200 1,241
$000's 1,198 1,299
1,200 1,136
1,125
1,000
935
819
800
600
600
454 389
400
200
0 0 0
0
-200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

24. Cash
$2,034,000 - 9/30/09
Reserved (25%)
Opera6ng (75%)
Thursday, November 12, 2009

25. Cash
$2,034,000 - 9/30/09
$500,000
Reserved (25%)
$1,534,000
Opera6ng (75%)
Thursday, November 12, 2009

26. Safe Cash Investments
• Cash spread across 8 financial institutions
• Spare cash in money market accounts
and Certificates of Deposits (CDs) in the
US and a Treasury bond in the UK
• CD maturity dates are laddered
• No stocks or Subprime mortgages
Thursday, November 12, 2009

27. 2010 Draft Budget
• Revenue - $4,315,000 (6% growth over 2009LE)
• Membership growth leveling off/most new
members in lowest tier
• Expenses - $3,827 (9% growth over 2009LE)
• Investments in metadata quality and System Rewrite
• Two new staff positions – tech support and part-
time bookkeeper
• Cash balances remain within Board cash policy
Thursday, November 12, 2009

28. Strategic Issues
• Ensure long term viability of CrossRef
through prudent policies and long term
planning
• Define broad principles for investment in
start up initiatives (i.e., innovations)
• Regularly monitor all fees and adjust as
necessary
Thursday, November 12, 2009

29. Strategic Issues - Risks
• Decline of Backfile deposits and leveling off
of growth of Current deposits
• Impact of general economic downturn
• Costs going up due to growth in members,
metadata quality efforts and new services
• Not completing System Rewrite in a timely
manner
Thursday, November 12, 2009

30. Strategic Issues - Risks
• Collection on member & affiliate
billings has become much more
difficult and time consuming
• More invoices go over 90 days
past due
Thursday, November 12, 2009

31. Summary
• Excellent financial performance
• Major investment in System Rewrite
including IP ownership
• Risks being addressed
• CrossRef can expand and remain a viable
non-profit for industry innovations.
Thursday, November 12, 2009