How the National Association of Home Builders Spends Revenue

The National Association of Home Builders (NAHB) is a trade association – a 501 (c) 6 – that represents the home building industry.  With an estimated 140,000 members among 700 sate and local associations, NAHB is based in Washington, DC and has 76 voting members on its governing board, 71 of whom are independent (although 125 directors are listed on the 2023 Form 990;  111 (89%) of whom are male while 14 (11%) are female).

Key financial information to know about NAHB includes the following:

• Total revenue was $80 million in 2023, most of which came from three sources:  the International Builders Show ($40 million), a 3-day annual trade show; membership dues ($25 million), and shows, conferences, meetings, and education ($11 million).
• Expenses totaled $84 million, most of which were for compensation ($44 million or 55% of revenue), office expenses ($14 million or  18% of revenue)), travel and conferences including first class or charter travel and travel for companions ($16 million or 20% of revenue), fees for services and outsourcing ($5 million or 6% of revenue), and other expenses including advertising and promotion ($5 million or 6% of revenue).
• At the beginning of 2023, net assets were $29 million.  Although NAHB spent $4 million more than the organization raised, $7 million on unrealized gains on assets and a $600,000 adjustment for earnings in home innovation research labs, meant NAHB posted $32 million in net assets at year-end 2023.

Every $100 in revenue (which was primarily from the annual trade show and membership dues) was spent as follows:

$100:  Revenue

-$ 55:  Compensation

-$ 20:  Travel and Conferences

-$ 18:  Office Expenses

-$  6:  Fees for Services/Outsourcing

-$  6:  Other Expenses including advertising and promotion

-$105:  Total Expenses

-$  5:  Excess Expenses over Revenue

As illustrated above NAHB spent $105 for every $100 brought in but was able to cover the shortfall ($4 million) from reserves.

The bottom line is that membership dues and the annual conference pays primarily for staff, travel and conferences and office expenses.

To read the IRS Form 990 (2023), click here.