2013 ANNUAL REPORT

Entrepreneurship | Education | Empowerment

A b ou t Th e A l l i a nce

Ta bl e Of C on t e n t s

Al∙li∙ance (uh-lahy-uhns), noun, 1: a union or association formed for mutual benefit, esp. between groups and organizations; 2: a relationship based on an affinity in interest, nature, or qualities; 3: a state of being joined or associated; 4: the act of allying or state of being allied

Who We AreThe Alliance for Affordable Services is a not-for-profit association that is dedicated to helping members keep more of their hard-earned dollars in their own pockets. To that end, Alliance uses the power of the group to negotiate savings for its members on a variety of benefits and services.

Our PurposeThe purpose of Alliance for Affordable Services is to inform and educate members on topics of importance — affordable benefits and services, promoting small businesses, and higher education.

President’s Letter .................................. 3

Legislative Advocacy

Advocacy Events ............................... 4

Legislative Surveys ......................... 5-6

Legislative Victories ........................... 7

2013 Alliance Scholarship

First-Time Recipients ...................... 8-9

Renewal Recipients ........................ 9-10

The Value of Membership .......................11

Stay Connected .................................. 12

2013 Annual Report 3

Greetings Alliance Members,

Alliance for Affordable Services has been providing access to valuable benefits and services for over thirty years. Through our years of experience, we have learned the importance of finding ways to help our members stretch

their hard-earned dollars and bringing our members’ voices to Capitol Hill on the topics important to building a brighter future for us all.

Over the course of 2013, member feedback led us to renew our focus on supporting the needs of small businesses — the lifeblood of America. That is why Alliance introduced a new membership level to help the self-employed and small businesses. The Select benefit package includes benefits such as Home Office Protection, coverage for lost or damaged business equipment, and the Business Interruption Expense Program, that assists the business owner when they are not able to work or generate revenue at their business because of a disabling injury.

Alliance also supports small business owners and entrepreneurs by consistently tweeting tips and links to resources that are important to this social circle. The numbers following @AffordableSvcs on Twitter are now over 13,000 and growing!

It was during 2013 that Alliance began expanding support of education in America beyond the popular Scholarship and Career Education Grant Programs. Alliance revamped the College Handbook by constructing a new Alliance College Guide website, providing students and parents a valuable resource of information and tools to help make attending college a reality. Alliance also began selecting organizations whose focus is on the empowerment of disabled

Americans to help them become productive members of their community. The chosen group receives a donation of computers from Alliance to enhance their overall learning environment. In turn, handicapped individuals are able to improve their skill sets and become more self-sufficient.

Families and individual members alike enjoy the convenience and savings of Alliance’s most popular benefits. These include TeladocSM, providing free access to board-certified physicians any time night or day; savings on prescription drugs; discounts on dental services; and emergency roadside assistance to provide aid when members need it most.

Whether it is through our legislative advocacy in Washington D.C., promoting education across America, or continuing to find ways to save you money, Alliance strives to enhance the quality of life for our members.

On behalf of the Alliance board of directors, thank you for being a member and we appreciate the opportunity to provide you with the value and savings you deserve.

Sincerely,

Paul H. Pevsner, M.D. President

For more information on your Alliance benefits, please visit AffordableServices.org. Benefit availability is dependent on membership level, package option, member’s state of residence, and may be subject to change.

E nt re p re ne u r sh ip | E d u c a t i o n | Emp o w e r m e ntP r e si de n t ’s Le t t e r

“ Alliance strives to

enhance the quality

of life for our members. ”

2013 Annual Report 4

Advocacy Events

2 013 R e p o r tLe gisl at i v e A dvo c ac y

SMALL BUSINESS WORKSHOPS

The Alliance co-sponsored a Small Business Workshop in Fort Lauderdale, FL, on April 20, 2013 with U.S. Representative/Democratic National Committee Chairwoman Debbie Wasserman Schultz (D-FL). This event was attended by over 500 small business owners from South Florida, who were able to interact with the Congresswoman, SBA officials, SCORE, and various other entities.

A second Small Business Workshop was held on September 30, 2013. This event was a partnership with the Greater Fort Lauderdale Chamber of Commerce and there were over 100 small business owners from Broward County in attendance who were able to hear from U.S. Representative/DNC Chairwoman Debbie Wasserman Schultz (D-FL), U.S. Representative Ted Deutch (D-FL), and U.S. Representative Lois Frankel (D-FL).

COMPUTER DONATION

Alliance hosted our first computer donation event on May 28, 2013 at the Dallas Lighthouse for the Blind. In attendance was Dr. Paul Pevsner, president of the Alliance for Affordable Services, U.S. Representative Pete Sessions (R-TX), and other members of Alliance. In partnership with Congressman Sessions, Alliance contributed ten refurbished computers. Congressman Sessions donated an additional eight computers and a copier/fax machine. The office equipment will help the Lighthouse carry out its mission of training and employing visually impaired individuals so they can live independently. During the event, attendees toured the facility and saw Lighthouse employees manufacturing goods sold to military, federal, state, and commercial customers.

SMALL BUSINESS FORUM

The Alliance co-sponsored our largest attended Small Business Forum on November 1, 2013, which was held at the campus of Bakersfield Community College in partnership with the Bakersfield Chamber of Commerce and CAL Chamber. This event featured U.S. Representative David Valadeo (R-CA), Senator Jean Fuller (R-18), Senator Andy Vidak (R-16) and Assemblyman Rudy Salas (D-32), and was attended by over 150 individuals, predominantly small business owners from the community.

Over the past year, the Alliance Legislative Advocacy Program has continued to grow and gain exposure with both Alliance Members and legislators at the state and federal level.

Small Business Forum Speaker Panel

Dallas Lighthouse for the Blind facility tour

2013 Annual Report 5

We received questions from U.S. Senator/Senate Finance Committee Chairman Max Baucus (D-MT), U.S. Senator/Small Business and Entrepreneurship Committee Chairwoman Mary Landrieu (D-LA), U.S. Representative/Republican Study Committee Chairman Steve Scalise (R-LA), and U.S. Representative Tom Price (R-GA) pertaining to legislative concepts they asked the Alliance to test the favorability or opposition of, regarding comprehensive tax reform legislation. We submitted the questions to our membership and received strong participation of Alliance membership in this survey of 729 respondents. This survey/poll was provided to various Members of Congress and the respective Committee Chairs who participated in drafting the questions to assist them with the creation of legislation regarding comprehensive tax reform and its impact on small business owners and the self-employed.

Le gisl at i v e Su rv e ys

51% support a tax reform plan that eliminates complicated loopholes (and creates a top C Corporation and pass-through

marginal tax that are equal). 41% were still undecided.

Support 51% Oppose 8%Undecided 41%

46% are in favor of a simplified tax code and single-page form (and are even willing to pay extra for it).

46%Undecided 27%

Oppose 27%

Support 46%

The most important tax reform issues for small business are:

Lowering my tax rate

Simplification of the tax code

Creating a small business tax code

44%

42%

14%

Members ranked the most critical small business elements of the current tax code as:

Schedule C Expense

Deductions

Small Business Healthcare Tax

Credit

Simplified Home Office Deduction

Section 179 Depreciation

Deduction

57% 54% 45% 28%

83%83% support the deduction of healthcare costs for payroll tax purposes for the self-employed.

Undecided 14%

Oppose 3%

Support 83%

2013 Legislative Survey Results

This infographic below is based on responses to our recent survey of Alliance Members about the current federal tax system. The Alliance for Affordable Services is a not-for-profit association that has been helping small businesses, self-employed individuals and families for more than 30 years.

www.affordableservices.org© 2013 The Alliance for Affordable Services

2013 Annual Report 6

Le gisl at i v e Su rv e ys

© 2013 Alliance for Affordable Services www.affordableservices.org

When considering the Senate’s Immigration Bill, fully half still are undecided

15%

34%

51%

Support

Oppose

Undecided

57% support a Small Business Tax Extender package to provide small businesses temporary relief until 2014

57%

3%

40%

Support

Oppose

Undecided

81% of Alliance Small Business Owners will be maintaining the status quo with their labor force in 2014

59% feel that our country is on the wrong track when it comes to the economy and related matters

20%

59%

21%

Rig

ht T

rack

Wro

ng T

rack

Und

ecid

ed

56% feel that the health insurance mandate for individuals under the Affordable Care Act will cause more pressure on the family budget

56%29%

15%

No Change

Less Pressure

MorePressure

Leave Labor Force Unchanged 81% Hiring 15% Laying Off 4%

As a part of the fall Annual Member Survey, we again engaged the Alliance Members' questions about our advocacy program and received strong feedback.

2013 Annual Report 7

Le gisl at i v e Vic t or ie s

SIMPLIFIED HOME OFFICE DEDUCTION

Alliance celebrated a federal legislative victory in 2013 with the implementation of the Simplified Home Office Deduction for small business tax filers. Alliance actively worked on this measure for over three years.

Senator Mary Landrieu (D-LA), Chair of the U.S. Senate Committee on Small Business and Entrepreneurship, expressed appreciation for the efforts of Alliance. "I would like to thank the Alliance for its hard work and focus on ensuring that small businesses have the incentives

they need to grow and be successful in today's marketplace. Small businesses grow the number of jobs and keep them close to home. I will continue to work with the Alliance as an advocate for the Home Office Tax Credit and other smart small business financial incentives that help meet the needs of small businesses throughout the country."

The House Small Business Committee Chair, Rep. Sam Graves (R-MO), also commented on the changes, stating, "The recent IRS simplified option for the home office deduction is good news for the small business community, especially since half of all small business owners work from home. Many small business owners will be able to save money and save time using this simpler calculation. This is a common sense victory for small companies and I applaud all, including the Alliance for Affordable Services, who worked hard for years to advocate for a less burdensome solution."

ADVOCACY ACTIVITIES

While it is disappointing that legislative action was slow to materialize in Congress during 2013, Alliance was not deterred in promoting the priorities of Alliance Members.

• Alliance was an active participant in the development of a bipartisan comprehensive tax reform package drafted by U.S. Representative/Ways and Means Committee Chairman Dave Camp (R-MI) and U.S. Senator/Senate Finance Committee Chairman Max Baucus (D-MT).

• As favored by Alliance Members in our tax reform survey, Alliance worked on a small business “tax extenders” legislative proposal (S.1498) with U.S. Senator/Small Business and Entrepreneurship Committee Chairwoman Mary Landrieu (D-LA). Alliance participated in a July roundtable hosted by the Senator, as well as other Committee Hearings and Forums regarding the issue. The proposal would be a reauthorization of the Small Business Jobs Act of 2010 tax credits for small business owners and the self-employed, legislation in which the Alliance played a pivotal role in its passage by Congress in 2010.

• Alliance advocated in the midst of the “fiscal cliff” negotiation process for an Amendment to exempt all Schedule C (small business “pass through”) filers from tax rate increases. Senior advisors to the Speaker of the House and House GOP Conference floated the idea, but failed to act upon and implement it in negotiations with the President. Various Members of Congress have indicated that, in hindsight, this should have been included in the final resolution.

• Alliance successfully advocated for the passage of various tax, regulatory reform, and access to capital measures in the states of California and Florida. In addition, Alliance participated in various policy discussions at the “Capitol Days”, Annual Policy Conferences, and as a member of the Six Pillars Caucus (FL Chamber) hosted by the California and Florida Chambers of Commerce.

• Alliance continues as an invited participant at the Bipartisan Policy Center and an active participant in the Small Business Leadership Council, including their February 5, 2013 annual meeting.

• Alliance was an invited guest at the U.S. Senate Finance and Small Business and Entrepreneurship Committee, as well as the U.S. House Small Business Committee, Energy and Commerce, and Government Oversight Committee Hearings.

U.S. Senator Mary Landrieu (D-LA)

U.S. Representative Sam Graves (R-MO)

2013 Annual Report 8

2 013 A l l i a nce S c hol a r sh i p

The Alliance for Affordable Services’ Scholarship Program was created to provide members and their dependents with financial assistance for college and to recognize the best and brightest scholars for their achievements. This year, Alliance awarded 132 outstanding students with $184,000 in scholarships, bringing the total awards to over $2.3 million during the program’s seventeen (17) year span.

Michael Z. AudiAlliance Member,

Charles Audi

Megan B. AutreyAlliance Member,

Larry Autrey

Philip N. BarkerAlliance Member,

Michael Barker

Jody J. BianchiniAlliance Member,

Peter Bianchini

Danielle A. BoyceAlliance Member,

Sherri Boyce

Christina W. ClouserAlliance Member,

John Clouser

Austin A. CoatesAlliance Member, Reginald Coates

Elijah CoryellAlliance Member,

Brett Coryell

Caleb T. DaviesAlliance Member,

Laurie Davies

Katherine E. DennisAlliance Member,

Brian Dennis

Mitchell D’saAlliance Member,

Loyola D’sa

Caroline FarinaAlliance Member, Kathleen Farina

Callahan FenertyAlliance Member,

Maria Fenerty

Samuel FishburnAlliance Member,

Mary Fishburn

Christian GorskiAlliance Member,

John Gorski

Christopher T. GrayAlliance Member,

Philip Gray

Alayna GunnAlliance Member,

Brian Gunn

Gabriel K. HindingAlliance Member, Michael Hinding

Megan E. HoAlliance Member,

Alan Ho

Elizabeth HoehnAlliance Member,

Jack Hoehn

Rodney P. HovleyAlliance Member,

Margot Hovley

James HuntleyAlliance Member,

Mark Huntley

Jamie L. IannaceAlliance Member, Madison Simpson

Nathan D. ImmermanAlliance Member, Ron Immerman

Elise M. JonesAlliance Member,

Jennifer Jones

Gabrielle L. KrzysiakAlliance Member, Matthew Krzysiak

Mari LancasterAlliance Member, Noricko Roberson

Mackenzie P. LittleAlliance Member,

Patricia Little

Edwin J. MakarevichAlliance Member,

Mercedes Makarevich

Daniel McCallAlliance Member,

Lorae McCall

Sierra McGrawAlliance Member,

John McGraw

Kayla R. MitchellAlliance Member,

James Mitchell

Jane ObradovichAlliance Member,

Stephen Obradovich

Danielle OseroAlliance Member,

Andrew Osero

Parth H. PatelAlliance Member, Harikrishna Patel

Adam ProtterAlliance Member,

Theresa Protter

Cole R. SchenewerkAlliance Member,

Gregory Schenewerk

Sarah M. SchulzAlliance Member,

James Schulz

Rebekah H. SerbinskiAlliance Member, Michael Serbinski

Linsey SextonAlliance Member,

Tami Sexton

First-Time Recipients

F ir st-T im e a n d R e ne w a l R ec ip i e nt s

2013 Annual Report 9

Tyler StecAlliance Member,

Jeff Stec

Douglas StephensAlliance Member

Recipient

Arthur SunAlliance Member,

Louis Sun

Rachel M. TroscinskiAlliance Member, Mark Troscinski

Caitlyn TullossAlliance Member, Richard Tulloss

Radmer B. Van Der HeydeAlliance Member, Wun-ling Chang

Thomas WaltersAlliance Member,

Ronald Walters

Monika WasilczukAlliance Member,

Wojciech Wasilczuk

Hannah WelshanAlliance Member,

Andy Welshan

Jennie WilburAlliance Member,

Jeffrey Wilbur

Kinsley B. WinnAlliance Member,

Jeffrey Winn

Grace WuAlliance Member,

Min Wu

Benjamin D. AdamsAlliance Member,

Arthur Major

Jackelyn AdamsAlliance Member,

Paula Adams

Siddharth AgrawalAlliance Member,

Anjali Agrawal

Carlos D. AndinaAlliance Member,

Carlos Andina

Ciara ArmstrongAlliance Member,

Gregory Armstrong

Jennifer K. AustiffAlliance Member, Timothy Austiff

Tara Avril-TuckerAlliance Member,

Pamela Tucker

Leigh BooneAlliance Member,

Terry Boone

Julianne A. BorgardtAlliance Member,

Jean Borgardt

Quinn S. BoyackAlliance Member,

Kevin Boyack

Courtney H. BrownAlliance Member,

Joe Brown

Bjorn T. BurkleAlliance Member,

Brad Burkle

Alana CarrollAlliance Member,

Jeffrey Kimsey-Carroll

Eric A. CarterAlliance Member,

Brenda Carter

Victoria C. CarterAlliance Member,

Andre Carter

Aaron ChartierAlliance Member,

Gilbert Garcia

Priya ChughAlliance Member,

Rakesh Chugh

Brandon CoatesAlliance Member, Reginald Coates

Owen T. CossAlliance Member,

Stephen Coss

Rachel A. DaleyAlliance Member,

Susan Barbieri

Danielle DorregoAlliance Member, Daniel Dorrego

Erica M. DostieAlliance Member,

Vincent Dostie

Courtney D. DuquetteAlliance Member, David Duquette

Joseph W. ElphingstoneAlliance Member,

William Elphingstone

Alex C. FiehrerAlliance Member,

Jane Fiehrer

Evan K. FiehrerAlliance Member,

Jane Fiehrer

Benjamin B. FlegalAlliance Member,

Gregory Flegal

Mario J. GagnonAlliance Member,

John Gagnon

Jacklyn GaribayAlliance Member,

Joe Garibay

Claire R. GillespieAlliance Member, David Gillespie

Haley L. GlennAlliance Member,

Monette Glenn

Amin GoslaAlliance Member,

Saeed Gosla

Renewal Recipients

The Alliance Scholarship Program provides $1,000 renewal awards to original recipients who maintain at least a 3.5 Grade Point Average for up to an additional three (3) years. Our congratulations go out to these outstanding scholars!

2013 Annual Report 10

Stephanie HellecksonAlliance Member, Brent Helleckson

Nina HillAlliance Member,

Andrew Hill

Hallie R. HollandAlliance Member,

Joe Holland

Maria F. KarrasAlliance Member,

Louis Karras

Patrick KennedyAlliance Member,

Mary Kennedy

Cody KernAlliance Member,

Theresa Kern

Amber KruppAlliance Member,

Karen Krupp

Clayton J. KruppAlliance Member,

Karen Krupp

Forrest G. KunkelAlliance Member,

Greg Kunkel

Linda LaAlliance Member,

Kim Lai

Rachel M. LawrenceAlliance Member, Thomas Lawrence

Robert MadfisAlliance Member,

Jeryl Madfis

Jamie MartinAlliance Member,

Tina Martin

Kyrie E. MartinAlliance Member,

Gail Martin

Connor S. MeiningAlliance Member, Thomas Meining

Anna K. MooreAlliance Member,

Kelly Moore

Alexander C. MorrisAlliance Member,

Gary Morris

Spencer W. MurphyAlliance Member,

Bruce Murphy

Emmeline PaintsilAlliance Member, Emmanuel Paintsil

Ashley R. PalesAlliance Member,

Michelle Pales

Nicholas PitsoulakisAlliance Member, Paul Pitsoulakis

Sheridan PrinceAlliance Member,

Martin Prince

Nichole M. RaafAlliance Member,

Robert Raaf

Alexandra RainesAlliance Member, Mitchell Raines

Rachel RoeAlliance Member,

Alison Roe

Bruce RuotsalaAlliance Member,

John Ruotsala

Jeriann SandrikAlliance Member,

John Sandrik

Zachary J. SaylorAlliance Member,

Michele Saylor

Carla P. SmithAlliance Member,

Patricia Smith

Haydan C. SmithAlliance Member, Shannan Hearne

Devin R. StubbsAlliance Member, Joseph Donovan

Krista M. SundeAlliance Member,

Thor Sunde

Elizabeth SwezeyAlliance Member, Rosalee Swezey

Alexandra M. SzotkaAlliance Member,

Eric Szotka

Kelsey TibbittsAlliance Member, Richard Tibbitts

Jeremy M. TjiaAlliance Member,

Joshua Tjia

Ryan A. TompkinsAlliance Member,

Kathleen Tompkins

Anthony T. TrinhAlliance Member, Jeanine Do Trinh

Rebecca A. TurnerAlliance Member,

Mary Turner

Marissa C. UptonAlliance Member,

Thomas Upton

Hannah WendelAlliance Member,

David Wendel

Colin WestphalAlliance Member, Larry Westphal

Brittney M. WhiteAlliance Member,

John White

Emily L. WilliamsAlliance Member,

John Williams

Julia N. WilliamsAlliance Member,

Harold Williams, Jr.

Nicole WorzelAlliance Member,

Guy Worzel

Pranay YeturuAlliance Member, Krupakar Yeturu

Audrey YungAlliance Member,

Bwo Yung

2013 Annual Report 11

Th e Va lu e O f Me m be r sh i p

Retail comparisons are based on an independent pricing study completed May 2014. Benefit availability is dependent upon membership level chosen, benefit partner, member’s state of residence, and may be subject to change.

ALLIANCE VALUE FAMILY MEMBERSHIP OPEN MARKET

TeladocSM – Included HealthNation – $360

Assist America – Included Medjet – $385

ID Theft Resolution – Included LifeLock – $150

Legal Club of America® Family – Included Legal Club of America® Family – $144

Association Motor Plan – Included AAA – $150

ANNUAL MEMBERSHIP DUES – $480 ANNUAL RETAIL COST – $1,189

Compare the Savings and Convenience Alliance Provides

Why pay retail prices? An Alliance membership conveniently combines many of the products and services that you would purchase individually at substantial savings.

SAVING YOU $709 EACH YEAR!

2013 Annual Report 12

THANK YOU FOR BEING AN

ALLIANCE MEMBER AND ALLOWING

US TO SERVE YOUR NEEDS!

WEBSITEwww.AffordableServices.org

TWITTER@AffordableSvcs

ALLIANCE MEMBER SERVICES 800-733-2242

HOURS OF OPERATION 7:00 a.m. to 5:30 p.m. Central

Monday – Friday

MEMBER SERVICES IS ABLE TO HELP YOU WITH:

• Detailed benefit information• Assistance with accessing your benefits• Any questions or changes to your account• Ideas or suggestions you have that

can benefit members

S tay C on n e c t e d

©2014 Alliance for Affordable Services

P.O. Box 612547 | Dallas, TX 75261-2547www.AffordableServices.org

Member Services | 800-733-2242Fax | 800-847-8889