Professional Beauty Association

What it reported doing in 2024

Government affairs: pba's government affairs team works to influence local, state, and federal government legislation. Advocating on behalf of our membership, our efforts include education regarding the importance of occupational licensing for the professional beauty industry, business growth, and managing state and federal issues impacting day to day salon operations. Pba's government affairs team also manages advocacy programs that include volunteer outreach efforts within our industry. The 139,407 advocates in our professional beauty advocate (cont'd on sch. O) program have taken 856,068 actions connecting with elected officials at the state and federal level. Pba's government affairs team engages and contracts with outside firms to assist with state and federal direct lobbying. The range of the government affairs team includes conducting research, analyzing legislation, creating a strategic response to legislation, lobbying, building grassroots and organizing volunteers, advocacy campaigns and messaging, education outreach, and utilizing partnerships. Our team is proud to serve on the council of state governments' cosmetology and barbering interstate compact technical assistance group funded by the department of defense (dod). Additionally, our team speaks at public and private events sharing the proponent perspective of occupational licensing and educating on a variety of business-related topics of concern for our members. After analyzing legislation our goal is to explain the potential impact and advocate for the best solution for our members. In 2024, pba hosted an Arizona salon success symposium at our corporate headquarters for a full day of learning for local salon leaders to hear about resources & tips from the az state board of barbering & cosmetology, the Arizona small business development center network, the IRS & three salon owners.

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 90.9%; rating input score 91; 5th percentile among comparable filings
• Pay-setting controls: 2 of 6 controls in place; rating input score 33
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: 71.6%; rating input score 72; 19th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 7 of 9 controls in place; rating input score 78
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Fail
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Fail

Sustainability

• Operating margin: -82.9%; rating input score 1; 1st percentile among comparable filings
• Total-asset coverage ratio: 4.37; rating input score 81; 81st percentile among comparable filings
• Liabilities to assets ratio: 0.18; rating input score 46; 46th percentile among comparable filings
• Officer compensation ratio: 23.1%; rating input score 9; 9th percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: 2.4% per year; rating input score 100; 23rd percentile among comparable filings
• Asset growth: 13.4% per year; rating input score 100; 70th percentile among comparable filings