2000 Annual Report - AARP601 E Street, NW Washington, DC 20049 D12594 (501) Your Choice.Your Voice.Your Attitude. 2000 Annual Report

601 E Street, NW Washington, DC 20049

www.aarp.org

D12594 (501)

Your Choice. Your Voice. Your Attitude.2000 Annual Report

Vision. AARP excels as a dynamicpresence in every community,shaping and enriching theexperience of aging for eachmember and for society.

Mission. AARP is a nonprofitmembership organization ofpersons 50 and older dedicated to addressing their needs andinterests. We seek througheducation, advocacy, and serviceto enhance the quality of life for all by promoting independence,dignity, and purpose.

Promise. With its great resourcesand strength, AARP helps me make my own choices, reach mygoals and dreams, and make themost of my life after 50.

Sometimes a change that’s been taking

place gradually is suddenly revealed.

When the drapes fell from AARP’s head-

quarters building in October 2000,

unveiling the faces of AARP’s bold new

outreach campaign, they also revealed a

dawning reality about the 50+ popula-

tion; that, over the years, its character has

changed, with good health and an active

lifestyle extending decades longer.

Those falling drapes also revealed a new

AARP. We took tremendous strides in

2000 to change and grow so we can better serve our evolving constituency. And,

with our new theme “Your Choice, Your Voice, Your Attitude,” we worked hard

to ensure that the public’s image of AARP, as well as that of its members, is as

dynamic, vital, and caring as the reality.

Among many new initiatives we launched in 2000, perhaps the most

emblematic of today’s AARP is our new magazine, My Generation, which

debuted in January 2001. It serves members in their first years after 50, a

decade of many changes in people’s lives. AARP recognized that the

information and other needs of baby boomers were largely going unfulfilled,

and My Generation became a first step in reaching out specifically to them.

Horace B. Deets, Executive Director C. Keith Campbell, Vice PresidentTess Canja, President

We broke the mold in other ways as well.

Our unprecedented election efforts—

including the AARP Voter Express bus

and sponsorship of the presidential and

vice presidential debates—helped place

the issues of Social Security, Medicare,

and prescription drug coverage front and center in both parties’ platforms.

Our efforts to prevent telemarketing fraud were rewarded with legislative or

regulatory victories in over 20 states. We offered more publications and services

than ever in Spanish and other languages. We added new discount opportuni-

ties for members, such as Gateway Computers and DirecTV. And we moved

closer to our goal of having an AARP office in all 50 states (as well as the District

of Columbia, Puerto Rico, and the Virgin Islands), which will help us reach out

to our members and be a more effective advocate for them.

Activities that people have long identified with AARP also thrived. We worked

with members of Congress for successful reauthorization of the Older

Americans Act, which helps bring millions of Americans proper nourishment,

protection against abuse, employment training, and other services. We laid the

groundwork for a redesigned and updated Modern Maturity. And our 55 ALIVE

Driver Safety Program graduated nearly 600,000 drivers.

“Your Choice, Your Voice, Your Attitude” isn’t just a new theme for AARP. It’s

a salute to all people 50 and over—a celebration of the tremendous vitality,

variety, and diversity of their lives. These pages will give you some idea of the

myriad ways, old and new, that AARP continued its tradition of serving them

in 2000.

Tess CanjaPresident

Horace B. DeetsExecutive Director

C. Keith CampbellVice President

"There have been plenty of challenges as I've

gotten older, but I've been able to meet them

head on. In fact, I'm still having a lot of fun.

AARP has been a big help, with information

and other assistance just when I needed it."

—Jane, Clearwater, FL

You choose. Choose your road

to financial security. Choose to

work as long as you like. Choose

to be healthy and strong.

Life after 50 isn’t a narrowing tunnel, it’s a broadening horizon.

Health care for those whoneed it. Millions of membersdepend on AARP Health CareOptions for quality health insuranceproducts and caring, personal serv-ice. Last year, we worked with theMedicare supplement insurance

underwriters, United HealthCare, to makeMedigap insurance more affordable. (Medigap

insurance covers health care costs not covered byMedicare.) Premium rate increases were kept low, criteriafor acceptance into the plans covering prescription drugswere liberalized, and the number of our membersenrolled in AARP Medicare supplement plans increasedto about 2.2 million. And for the many people in search ofhealth care because their HMOs have left Medicare, wepublished What To Do If Your Medicare Managed CarePlan Leaves, in both English and Spanish.

Finding answers toaging’s questions. Can’t sleep? Insomnia is a com-mon condition for people over50, and it’s one of the problemsresearch funded by the AARP

Andrus Foundation looked into in 2000. For 32 years, thefoundation has been on a quest to make people’s livesbetter by examining issues like chronic health conditionsand how to maintain independent living, then working toapply the results to day-to-day life.

Making prescription drugs affordable.AARP successfully helped enact legislation in several states to expand prescription drug programs for older people last year. In Indiana, AARP support was critical in enacting a bill allocating the tobacco settlement money in which one of the provisions creates a prescription drug program.

What’s more essential than good health?Health and wellness programs from today’sAARP serve the needs and interests of over 34million members. Information, education, advo-cacy, and community programs address the fullspectrum of their health issues.

Shape up.Americans 50 and over are more interestedthan ever in livinga healthy lifestyleand staying fit.They get the information and inspiration they need atevents like the AARP-sponsored 5K run in Austin, Texas.When they’re back home, AARP is there to answer their health questions, with ourextensive Web site and manypublications (including four newaward-winning booklets speciallydesigned for baby boomers, thatcover everything from fitness tipsto safe sex information). And theyget discounts on eye examsthrough AARP Vision Source (saving an average of $100 per purchase) and on prescription drugs through the AARP Pharmacy Service.

Live ahealthy life!

6 | AARP 2000 Annual Report AARP 2000 Annual Report | 7

first time or people suffering from careerburnout. And AARP is helping them getand keep the jobs they deserve by fight-ing age discrimination through thecourts, legislatures, and public opinion.

Money dreams and realities.Good public policies depend on goodinformation. An AARP/Modern Maturity

survey last year took a look at families and money, andpainted a picture of an optimistic and practical nation.People said they want to be millionaires because they

value the ways money can benefit theirfamilies and others they care about, yet

they ranked wealth low in importancecompared to strong family relation-

ships and having an interesting job. Astudy funded by the AARP Andrus

Foundation asked low-incomeworkers about their retirement

savings—and came up withsome troubling results

about their ability to set money aside. Andresearch sponsored by

the National RetiredTeachers Association (adivision of AARP)helped public employ-ees, particularly retirededucators, comparetheir potential retire-ment benefits andaccess to retirement

health care. Ultimately,the research should help

identify educational andpolicy strategies that can

help people plan a secure retirement.

People over 50 are taking charge of theirfinancial lives. Baby boomers particularly wantto get the best tools and information available,so they can make the best decisions. Manypeople are working past 65 and exploringsecond careers. AARP is on their side, helpingthem reach their financial goals.

Making investments pay off.The AARP Investment Program fromScudder Investments helps members beready for whatever opportunities lieahead. In 2000, the program expandedits fund selection from 16 to 40 andoffered more tools on its Web site,including a hugefinancial library anddecision-making

calculators. AARP also made availableto members new discounts onKiplinger Financial Publications,Quicken Software, and TurboTax. Andit introduced “Women! It’s Time,” withfinancial programs and informationspecially designed for moderate-income women in their 50s.

Working for workers.The working world ischanging, with careersbecoming more fluid andnew technologies entering everyoffice and factory. AARP Worklink helps 50+ workers meet the challenges and find the opportunities in this brave new world. Our enhancedWorking Options Web site and new publications such as Staying Competitive by Embracing Technology provideinformation for women entering the job market for the

Reachyour financial goals!


Benefits, jobs, and a little helpwith your taxes. Many older peopleare unaware of federal programs that canhelp them pay for basic living expenses,medical care, and food. Through ourPublic Benefits Outreach program, lastyear AARP helped thousands of peopleapply for the government programs towhich they’re entitled. And the AARP

Foundation’s Senior CommunityService Employment Program, funded by theU.S. Department of Labor, helped low-income job seekers 55 and older gain workexperience so they could move on topermanent jobs, resulting in over 8 millionhours of community service in the process.In addition, over 1.6 million people got freehelp preparing their taxes last year fromAARP Tax-Aide volunteers (funded by a grant from the

IRS and administered through the AARPFoundation). Many of those

served—who are primarilylow- and middle-income

or over age 60—would have had

great difficultypreparing

their ownreturns.

Protecting consumers and defending peo-ple’s financial security have long beenAARP hallmarks. The Association standsbeside people whether they’re fightingunscrupulous lenders, navigating a maze ofgovernment programs, or helping to expose afraudulent Medicare provider.

Protecting consumers. AARP is the worst enemy of fraudulenttelemarketers, lenders, andMedicare providers. We teachpeople to recognize a questionabletelemarketing call, so they hang upinstead of sending a check. We fightpredatory lenders—who pressurepeople into getting risky high-interest loans using their homes as collateral—in the courts

and legislatures. And, through the AARPFoundation, we enlist the aid ofMedicare beneficiaries, helpingthem spot unscrupulousproviders to help keep thecosts of Medicare down.AARP also works tokeep utility costsfair, especiallyin statesundergoingelectric utilityrestructuring.

Findthe right resources!


AARP 2000 Annual Report | 13

students than ever taking the course in Spanish or withthe help of sign language interpreters. More difficult yet isthe death of a loved one. Through AARP Grief and LossPrograms, trained volunteers last year helped more than500,000 people rebuild their lives. Like 55 ALIVE, Griefand Loss Programs are focusing on a multiculturalperspective; in 2000 they published Soledad, a Spanish-language guide for those recently widowed.

Declare independence. Thousands ofAARP chapter members across the countrytook hammer in hand during IndependentLiving Week 2000, helping neighbors makeminor improvements to their homes thatwill allow them to remain independent aslong as is practical. People turned to AARPthe rest of the year as well, for independent

living assistance from AARP-sponsored chapters andinformation from the Association’s extensive library ofresources. And AARP’s material on “universal design” is

giving individuals and builders information they needto make homes more livable for people of all ages.

Choosing long-term care.AARP is the nation’s leading

advocate for people in long-termcare, with research and legal

and legislative initiativesthat continually improve

the quality of care. Ourresources for olderpeople and theirfamilies dealing withassisted living facilities and nursing homes grew last year withthe addition of Navigating YourWay to a Quality Assisted LivingFacility, Choosing Good Care: AFamily Guide to Finding a NursingHome, and more.

The years after 50 can be a wild ride, withlife changes coming fast and furious. AARPcan’t take all the potholes out of the road, buteach day its programs make the ride a littlesmoother for many thousands of people.

Answers to life’s problems, small and large.Whether it’s finding a summer camp for a child or grand-child, selecting a retirement community, or locat-ing a local support group for a parent livingwith a chronic medical condition, AARPLifeAnswers can help. It’s a resourceand referral service that providesinformation and professionalconsultation on caregiving,working, retirement, education, and

other concerns of adultlife. In 2000, AARP alsolaunched the ForGrandparents Website. It has lots ofinformation forpeople who take

care of their grandchildren,either on occasional visits oras primary caregivers.

Facing the toughchanges. Some of life’schanges after 50 are tough—like physical changes thatmake driving more of achallenge. But AARP’s 55 ALIVEDriver Safety Program helpskeep older drivers safely on theroad. In 2000, there were morethan 586,000 graduates fromover 29,000 classes—with more

Conquerlife’s challenges!

12 | AARP 2000 Annual Report

"I sleep better at night knowing that AARP is

looking out for me and for all older Americans,

both in Washington and in our state capitol."

—Glyn, Ocala, FL

As individuals, our voices may

have little impact. But when we

speak together, our voice is strong.

We’re working hard to be

heard in every corner of America and around the world.


AARP launched the most aggressive, com-prehensive voter education effort in ourhistory last year. In communities across thecountry, on the Web, at candidate forums anddebates, and in classrooms, AARP gave peoplethe information they needed on the issues andencouraged them to get out and vote.

AARP Voter Express, in acity near you. AARP’s VoterExpress bus tour rallied votersacross the country—the first timethe Association has mounted sucha vast grassroots undertaking.From the Republican NationalConvention in Philadelphia to theDemocratic National Conventionin Los Angeles, people gathered at75 events in 36 states where theyreceived nonpartisan voting information and got the factson AARP’s four main election issues—Social Security,Medicare, consumer protections in managed care, andlong-term care. Along the way hundreds of thousands ofpeople signed pledge cards supporting a prescriptiondrug benefit in Medicare.

The facts. AARP’s members were looking for thestraight facts on issues that concern them, so theycould make decisions about the best candidates.AARP answered last year by distributing over 20 million nonpartisan voters guides andcreating Election 2000 on AARP Webplace,with guides, transcripts from candidateforums, and voter registration

information. The Association also sponsoreda series of presidential candidate forumsduring the primaries,including one in Iowa

featuring formerSenator Bill Bradley and in South Carolina with Senator

John McCain, and sponsored the presidential and vice-presidentialdebates.

Partnerships that got out the vote. Tohelp foster a sense of civic involvement in

future voters and their parents, AARP part-nered with Scholastic and Washington Week

(formerly WashingtonWeek in Review) tosponsor Student Vote2000. The programincluded a curriculumand special Webcasts,and culminated inonline mock electionsfor over 2 millionjunior high and highschool students. AARP

also joined with MCI and AmericaOnline to create

BeAVoter.org, anonline voter

registrationsite, andsponsored astudent get-out-the-votephone bank.

Get the factsand vote!



home reform in California; major expan-sions of low-income prescription drugcoverage programs in Illinois, New York,and Massachusetts; significantly increased

funding for home and community-based long-term careservices in Tennessee; and increased protections for man-aged care patients, utility consumers, and telemarketingfraud victims in a number of states. Many other legislativesuccesses were achieved in cooperation with state retirededucator associations, particularly in pension equity and“catch-up provisions” for those retired the longest.

Fighting in the courts. In 2000, AARP FoundationLitigation handled or filed briefs in cases with potentiallyprofound effects on the 50+ population. We focused on

areas such as health andlong-term care, age anddisability employmentdiscrimination, pensionsand other employee andretiree benefits, andconsumer protections. Forexample, we filed amicusbriefs in the Reeves v.Sanderson PlumbingProducts, Inc. case, whichresulted in a landmarkSupreme Court decisionsimplifying what victimsof age discrimination inthe workplace mustprove, and in Pegram v.Herdrich, which clarifiedpeople’s ability to sueHMOs for injuries caused by wrongfullywithholding care.

In Washington and in the states, in legisla-tive chambers and courtrooms, AARP con-sistently speaks out for older Americans.We scored some major victories last year—victories that will improve the lives of millions.

Older Americans Act,reauthorized. After a five-yearlapse, the Older Americans Act wasreauthorized last year. With itspassage, funds continue to flow toprograms that help provide seniorcenters, Meals on Wheels, seniortransportation, and employmentservices for older Americans inhundreds of communities around the country. AARP, working with several organizations, was instrumental in gaining its reauthorization.

Earnings limit, repealed. Legislation supported byAARP in 2000 repealed the earnings limit that hadapplied to beneficiaries ages 65 through 69.As a result, hundreds of thousands ofpeople in that age group will no longerlose some of their Social Security bene-fits if they choose to continue working.

State successes. Some ofthe most important legislativeadvances for older peoplecome about one state at atime. With its increasing statepresence and broad expertise,AARP gained victories on anumber of issues. Examples:comprehensive nursing

Makeyourself heard!


AARP is energizing its volunteers, exercisingits legislative clout on the state level, andhaving more direct contact with individualmembers than ever before. We’re nowopening offices in every state. And that’s justone way we’re reaching out—to volunteers andmembers, to the public, and around the world.

Closer to our members. AARPis literally getting closer to ourmembers by opening offices in all50 states, the District of Columbia,Puerto Rico, and the Virgin Islands.It’s a huge undertaking, but it willplace AARP in ourmembers’ back yards,and make us moreresponsive to theirneeds and a moreeffective advocate forthem at the state level.By the end of 2001,every state office will beopen for business.

Cutting through. The AARP Bulletin is dedicatedto keeping members up-to-date on issues important tothem. It proved that in 2000,with articles that cut throughelection year rhetoric andprovided balanced coverage andanalysis of candidates’ positionsso that readers could judge forthemselves how the words wouldtranslate into policy. The monthlynewspaper included interviews withboth Al Gore and George W. Bush.

Listen, learn,get energized!


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The source. AARP is the source people turn to forauthoritative information on the 50+ population. Our

research—which extends to people of all ages—helpsform the basis for our own programs and policies, as

well as those of government and other organiza-tions. Just two examples from 2000: A study by

AARP’s Public Policy Institute examined theimpact of increasing the eligibility age for

Social Security and Medicare. The first com-prehensive survey of learners in their middle

and later years, commissioned by AARP andsupported by our National RetiredTeachers Association division, found thatthey preferred learning that focuses onkeeping up with what’s going on in the

world and on personal development.

AARP over the airwaves.Prime Time Radio, AARP’sweekly interview program,focuses on the interests ofpeople 40 and older and isaired on over 70 stations. OurMature Focus Radio, one of themost popular daily series in thecountry, offers brief discussions

of interest to the 40+ audience. In 2000, AARPalso became cosponsor of the PBS programWashington Week (formerly Washington Weekin Review) and worked with the show’sproducers on joint activities.

A global impact. AARPInternational Activities raises

awareness of the contributions andneeds of older people around the

world. In 2000, we continued our workwith United Nations organizations and

in developing the Partnership for anAging Society—a network of over 3,000aging organizations.


"It's the schmoozing and the camaraderie that

I really love. It's a little 24-hour adventure."

—Joyce, member of an

AARP-sponsored relay team, Portland, OR

Life is as full and exciting

as you make it, at any age.

Whether you’re lending a helping

hand or dancing the night away,

there are lots of opportunities to let your spirit shine through.


and Disney on Ice. Members can find and use the broadarray of benefits available more easily because of theAARP Privileges booklet, introduced in 2000. Or, throughMy AARP on AARP Webplace, they can create a profilethat generates a personal homepage highlighting topicsand services of interest. Automatic updates keep theinformation current.

Motown and more. AARP members danced thenight (or day) away in citiesacross the country last year.Hundreds gathered for grilledhot dogs and cool music at theend-of-summer Stone Soul

Picnic in downtown Washington, DC, cosponsoredby AARP. Motown was the sound at September’sAARP Motor City Record Revue in Detroit. InOctober, the scene was Cleveland’s Rock and RollHall of Fame, and in November it was back inWashington for a hand dancing party.

Take me out to the ballgame… and skislope…and track… AARP celebrated the challengesand rewards of lifelong fitness by sponsoring the 2000National USA Masters Track and Field Championships,open to athletes age 30 and over. We also sponsored theSilver Streakers, 12 energetic over-50 runners, in the 126-mile Hood-to-Coast relay race from Mount Hood toPortland, Oregon. When the weather was too cold for

running, members took ski trips toplaces like Pico Mountain inKillington, Vermont. And for thosewho prefer to admire the athleti-cism of others, AARP sponsoredDays at the Ballpark in a numberof cities, where members gathered to watch pro baseball.

Get up and dance. Learn something new.Catch a show. AARP is expanding andupdating its offerings for members that makelife more interesting, more fun, and morerewarding.

It’s never too late to become a nerd.The number of 50+ people with computersavvy grows every day, so AARP offered ourmembers discounts fromGateway on computerhardware and training in 2000.Several local AARP-sponsoredchapters also offeredcomputer training, and AARPWebplace continued toenlarge its section oncomputers and technology.

LA’s first “GoldenAfternoon.” AARP membersand their families danced tolatin favorites at the organiza-tion’s first Los Angeles Tarde deOro. For several years, “GoldenAfternoons” have been a hit inother cities, including Santa Fe,San Juan, and New York City. Celebrating Hispanic and Latino culture, the communityevents feature health screenings, information booths, food, and music.

Run off and join (or atleast watch) the circus.New discounts introduced lastyear included Genealogy.com,DirecTV (satellite television systems), Ringling Bros. and Barnum & Bailey Circus,

Havemore fun!


For AARP, 2000 was a year to show theworld a new attitude of our own. Just aswe’ve met the needs of preceding generationsover the past 42 years, we’re reaching out tobaby boomers with new offerings and revitaliz-ing long-standing programs.

Boom, babies! It’s My Generation.AARP announced the launch of My Generationin 2000, the first magazine specifically address-ing the interests of America’s 76 million babyboomers. It was the largest magazine launchever, initially reaching 3.1 million households.Topics range from health and longevity to vol-unteerism and

entertainment, from workand family to food and sexuali-ty. Members 50 to 55 are receiv-ing the new publication.

Refitting theflagship. In all theareas AARP helps itsmembers—health,finance, and so on—Modern Maturityplays a major role. A prime informationsource for members for over 40 years,the nation’s largest-circulation

magazine received a facelift and new editorialformat in 2000 (with the new look appearingin early 2001). The updates make it morerelevant and reader-friendly.

Today’s AARP. AARP began anunprecedented outreach campaign in 2000 aimed at nothing less thanchanging what the world knows aboutus and our members. We kicked off thecampaign by displaying on our head-quarters the biggest-ever build-ing wrap in Washington, DC,displaying faces of AARP

members that reflect the active, diverse 50+ popu-lation. People nationwide soon became familiarwith them from advertisements in The New Yorker,Newsweek, Time, USA Today, Ebony, Hispanic, andon CNN and NBC’s Today Show.

Celebrate! At the“AARP Celebrates2000” event inOrlando, more than20,000 people hearda star lineup ofspeakers includingformer Vice

President Al Gore and poet Maya Angelou, andsaw the latest products and

technologies to make theirlives better. The event

also introduced ournew logo.


Meettoday’s AARP!

Helping out America’s youth.AARP’s commitment to work for the welfareof people of all ages is reflected in theNational Retired Teachers Association’s With

Our Youth! Project. Since the program’s incep-tion in 1998, members in 1,000 communities

have devoted over 5 million volunteer service hoursto work with about 1 million young people. For example,the Manhattan, Kansas,local retired teachersassociation partnered witha community center,parents, and Kansas StateUniversity to expand the K-12 after-school program,last year providing a learn-ing boost to 65 children.

Volunteering gets easier.AARP Connections is the Association’s newsletterespecially written for our thousands of volunteers. In2000, for the first time, state versions of AARP

Connections became available tovolunteers in all 50 states, as

well as the District ofColumbia, the Virgin

Islands, and Puerto Rico(where it’s in Spanish).

In addition, AARPWebplace now offers

“The VolunteerExperience,” filledwith volunteeropportunities and information.

AARP members and volunteers aren’ttaking it easy. Every year they touch hun-dreds of thousands of lives, generouslysharing their time, experience, and goodwill with their communities.

Making the world better, one nail at a time. AARP dependson the efforts of our hard-workingvolunteers. Individually and through the3,500 AARP-sponsored chapters, theycontribute thousands of hours to com-munity projects. For example, ArizonaAARP volunteers spent a week in aremote corner of their state repairinghomes on a Navajo reservation lastsummer. Chapters near East St. Louis,Illinois, reached out to bring helpfulprograms to the city’s impoverishedneighborhoods. And in Virginia,volunteers helped install computersin a nursing home that allowresidents to keep in touch withthe outside world.

Makea difference!


Through AARP-sponsored chapters, communityorganizations, and individually, thousands ofvolunteers go out into their communities, doing whatneeds to be done and serving the people who need ahelping hand. They share with others not only their time,but their belief that even if they can’t change the world,they can certainly improve their corner of it. We can’t listall of them, or even list all of the great endeavors taken onby those we’ve included, but here’s a sampling.

Gilbert Martinez (Albuquerque, NM),former commanding officer ofKirtland Air Force Base,drives through the ice andsnow of the northern NewMexico mountains to lobbyin Santa Fe for legislation

important to older people. He’s beenespecially active in seeking fairnessin electricity and telephonederegulation.

Betty Jo McKenzie(Montgomery, TX)has spearheadedfundraising effortsleading to aid for a burnvictim, a Kosovo relieffund, an annual scholar-

ship for local high school students, and aproposed city park.

Marie Foster(Roanoke, VA) is acrime-fighter. She organ-ized a local Triad program,bringing law enforcement andcitizens together to make thecommunity safer for older people, and

hosts workshops that alert people about consumer fraud.

Volunteer Heroescoast to coast!

Earl "Skip" Twietmeyer (Portland, OR),a leader for community and personalenrichment events, put over 500 hoursinto planning the local Hood-to-Coastrelay race last year. He’s also securedfunding and support for civic projectsincluding a children’s museum.

Herb Wood (Washington, DC)has a knack for tapping people’s talentsand experience and matching them withvolunteer opportunities. Working withthe AARP Volunteer Referral Center for 11

years, he’s placed hundreds of individ-uals with organizations that

needed their help.

Leila Burney(Detroit, MI)is a women’sissues specialistand spokesper-son. She travelswidely, raisingawareness of issues affectingolder women, such as economicsecurity, grief and loss, caregiv-

ing, and pension rights.

Helene GreyKirschner (NewYork, NY) helps

baby boomers seeinto the future through

her work on "Boomers,It’s Time." This series of

mini-seminars held at corporations providesfinancial information for midlife employees.

AARP 2000 Annual Report | 3130 | AARP 2000 Annual Report

The year 2000 was a great time to become President of AARP, as you can

see by the accomplishments described on these pages. And 2001 is hardly a

letdown. The promise of 2000 is being delivered in 2001 through a number of

new initiatives.

We’ve launched My Generation magazine and opened

more state offices. We're introducing AARP's signature

fitness events (Tri-Umph! Classic 50+ swim.bike.run)

and will launch an immunization campaign to make

members more aware of the importance of getting a flu

shot. The “Grandma Moses in the 21st Century” tour

we sponsored is traveling the country, demonstrating

that creativity is for people of all ages. On the legisla-

tive front, we’re continuing our fight for a prescription

drug benefit in Medicare and campaign finance

reform. We’ve released a major research study on the

state of the 50+ population. We’re opening an office in

every state and reviewing our volunteer structure to

meet the changing needs of our membership. I person-

ally will be speaking out on two topics of special

concern to me—women’s and long-term care issues.

I sometimes wonder what AARP’s founder, Dr. Ethel

Percy Andrus, would say if she could see all that’s new

at the Association. I think she’d approve. She once said,

“The essential values will never change—only our

adaptation of them and to them.” And that’s still true—

today’s AARP is finding new ways to apply the values it

has always held in today’s America.

Tess Canja, of Port Charlotte, FL, was elected President of AARP in 2000. She was instrumen-tal in establishing a Department of Elder Affairs in Florida and received gubernatorialappointments to the Michigan State Health Coordinating Council and the Florida Long-termCare Ombudsman Council. She was a founding member of Quality Care Advocates, whichhelps residents and families in long-term care facilities. Mrs. Canja also serves on the BoardGovernance Committee and the National Leadership Conference Planning Committee.

A Message from Tess

Jane O’Dell Baumgarten of North Bend, OR, is a retired educator who taught in Franceand Saudi Arabia as well as the United States. She was AARP’srepresentative to the Coalition on Mental Health and Agingand served on the National Legislative Council. She currentlychairs the AARP National Nominating Committee and is amember of the Board Audit and Finance Committee and theAARP Foundation Board of Directors.

Beatrice S. Braun, M.D.Vice-President, Membership & Member Services

of Spring Hill, FL, was a physician and missionary in SouthKorea for 18 years and was founder and director of a day-treat-ment program for persons with severe mental illness. As VicePresident of Membership and Member Services for the 2000-2002 Biennium, she serves as chair of that committee.

Rutherford “Jack” Brice of Decatur, GA, was AARP’s Georgia state coordinator foreconomic security and received an Excellent Service Award forhis work with the AARP Work Force Program. Following 24years as a U.S. Army Officer, Mr. Brice held several manage-ment positions including CEO of his own company. He currently is chair of the AARP Foundation Board of Directors and a member of the AARP BoardGovernance Committee and the AARP Andrus Foundation Board of Trustees.

C. Keith CampbellVice-President, Board Governance

of Seward, AK, chaired AARP’s Alaska State Legislative Committee and was adelegate to the National Legislative Council. He was the administrator andchief executive officer of the Seward General Hospital for 19 years. In hiscurrent role, he serves as chair of the Board of Directors and chair of theBoard Governance Committee. He also chairs the Executive Director’sEvaluation Committee and serves on the Board Audit and Finance Committee.

Lavada E. DeSallesof Sacramento, CA, served as the AARP Regional Volunteer Director in theWest Region and was California State President. She was a member of theNational Forum for Black Public Administrators and the African AmericanLeadership Association. For 32 years she was executive director of theGovernor’s Task Force for Employment of Older Workers. Mrs. DeSallesserves on the Board Committee on Membership and Member Services andthe AARP Insurance Trust of the Health Care Options Program.

AARP Board of DirectorsDouglas C. Holbrookof Fredericksburg, VA, was a member of the AARP National WorkOpportunities Advisory Committee. He is active in the American DiabetesAssociation and is responsible for a strong alliance between the ADA and theAmerican Postal Workers Union, where he served as secretary-treasurer from1981 to 1999. He currently is vice chair of the Board Audit and FinanceCommittee and is a member of the National Leadership Conference PlanningCommittee and the Executive Director’s Evaluation Committee.

J. Kenneth Huff, Sr., CPAVice-President, Secretary/Treasurer

of Whitesboro, TX, was the associate state coordinator for the AARP/VOTEprogram and chair of AARP’s national Economic Security Advisory Committee.He is a member of several organizations, including the board of trustees ofthe Texas Medical Foundation. As Vice President-Secretary/Treasurer for the2000-2002 Biennium, he chairs the Board Audit and Finance Committee. Healso is on the Board Committee on Membership and Member Services.

Chris Lamberti of Houston, TX, was the southwest regional coordinator of AARP’s Tax-AideProgram and a national advisor for AARP’s 55 ALIVE Driver Safety Program.She also was a member of the board of Project 50 Plus of HoustonCommunity College and served as a telephone counselor for Women inAction. Ms. Lamberti currently is a member of the Board GovernanceCommittee, the AARP Andrus Foundation Board of Trustees, and theExecutive Director’s Evaluation Committee.

Charles Levenof Millbrook, NY, was AARP state president of New York and chair of the New York AARP Leadership Council. He is a member of the Attorney General’sCrime Victims Board and the New York Department of Aging Advisory Board.He held several positions in retail management including senior VP of opera-tions for Saks Fifth Avenue. Mr. Leven chairs the National Bylaws RevisionCommittee and serves on the AARP Audit and Finance Committee and theNational Nominating Committee.

Charles J. Mendoza, Ph.D., JDof Waverly Hall, GA, was the AARP state coordinator in Georgia for consumerissues. He previously was a consultant to AARP’s Criminal Justice Services andactive in AARP’s Telemarketing Fraud Campaign. A former criminal defenseattorney, he provides pro bono legal services to Hispanic organizations andindividuals. Dr. Mendoza serves on the Board Committee on Membership andMember Services, the AARP Insurance Trust of the Health Care OptionsProgram and the National Bylaws Revision Committee.

The AARP Board of Directors,comprised of 21volunteer members,sets the policy andagenda of theAssociation. Itgoverns on behalfof the members and determinesappropriate organi-zational perform-ance, includingfulfilling the missionof the organization,determining itsfuture direction, and assuring itsfiscal health.

Mary Jane O’Garaof Omaha, NE, was AARP state president of Nebraska and a member ofAARP’s National Legislative Council. Formerly assistant director of publicrelations for Omaha Public Schools, she also was a member of the AmericanDiabetes Association Board and president of the Nebraska School PublicRelations Association. Mrs. O’Gara currently chairs the Board RetreatCommittee and is a member of the Board Governance Committee and theAARP Andrus Foundation Board of Trustees.

Erik D. Olsenof Mesa, AZ, was AARP state president of Arizona and chair of the StateLeadership Council. He serves on the corporate boards of Delta Dental Plan ofCalifornia and Delta Dental Insurance Company. He retired as president andCEO of Delta Dental Plan of CA. Dr. Olsen twice served as chair of theNational Leadership Conference Planning Committee and serves on the BoardGovernance Committee and the AARP Insurance Trust of the Health CareOptions Program.

James G. ParkelPresident-Elect

of New Fairfield, CT, will become President in 2002. He serves on the board ofthe Danbury Hospital, and was president and CEO of Junior AchievementInternational. Mr. Parkel spent 32 years in executive management with IBM.He chairs the AARP Andrus Foundation Board and is on the Board Audit andFinance Committee, the National Leadership Conference Planning Committee,and the board of councilors of the Ethel Percy Andrus Gerontology Center.

Joseph S. PerkinsImmediate Past President

of Peabody, MA, served as President from 1998 to 2000. He served onnumerous boards including the national board of directors of the Alzheimer’sAssociation. Mr. Perkins was a founding member of the Board of Advisors forthe National Center on Women and Aging and the New England RetirementPlanners Council. He serves on the AARP Foundation Board and the BoardCommittee on Membership and Member Services.

Otto H. Schultzof Madison, WI, was AARP’s Wisconsin state liaison for retired educators. Priorto retirement, he was the district administrator of the Mishicot, WI, schools for37 years and was recognized by having a school named in his honor. He waspresident of the Wisconsin Retired Educators Association and board memberof a County Domestic Violence Center. Mr. Schultz chairs the AARP InsuranceTrust of the Health Care Options Program and serves on the AARP NationalNominating Committee.

Betty J. Severyn of Chattanooga, TN, was the AARP southeast regional volunteer director, aHealth Care Reform spokesperson, and state director for Health AdvocacyServices. She previously served on the Tennessee Commission on Aging, theTennessee Board of Nursing, and the board of the Chattanooga Area MentalHealth Association. She is vice chair of the AARP Insurance Trust of the HealthCare Options Program, and a member of the AARP Foundation Board and theBoard Governance Committee.

The Reverend Kenneth B. Smith, Sr.of Chicago, IL, has been involved in the civic life of the city of Chicago andwas president of the Chicago Board of Education, treasurer of the UnitedWay of Chicago, and trustee of DePaul University. Seven colleges and universi-ties have awarded him honorary degrees. Dr. Smith has been a minister in theUnited Church of Christ since 1960. He serves on the Board Committee onMembership and Member Services, the AARP Andrus Foundation Board ofTrustees and the National Bylaws Revision Committee.

Marie F. Smithof Kahakuloa, HI, was chair of the AARP National Legislative Council and anAARP Women’s Initiative Program Spokesperson. She was a member of theOffice on Aging Advisory Board and was appointed Commissioner on theStatus of Women by the governor of Hawaii. Mrs. Smith held several manage-rial positions in the Office of Social Security Administration. She is a memberof the Board Audit and Finance Committee and treasurer of the AARPFoundation Board of Directors.

Virginia L. Tierneyof Quincy, MA, served as the AARP Area Vice President in the NortheasternRegion and was state director for Massachusetts. She is on the Governor’sAdvisory Council on Alzheimer’s Disease and was Speaker of the House ofthe Silver-Haired Legislature and a member of a state Special Commissionon Ethics. She serves on the AARP Andrus Foundation Board and the AARPInsurance Trust of the Health Care Options Program.

Arnulfo T. “Art” Zamoraof Denver, CO, was on the AARP State Legislative Committee’s Capital CityTask Force. He is a member of the state and National Epilepsy FoundationBoards and the President’s Committee on Employment of People withDisabilities. He also is on the board of the Colorado Latin American Researchand Service Agency (LARASA). Mr. Zamora serves on the Board Committee onMembership and Member Services and the AARP Andrus Foundation Board ofTrustees.

Seated, left to right:

Mary Ann RiesenbergDirector, Audit and Advisory Services

William D. NovelliAssociate Executive Director, Public Affairs

Dawn SweeneyAssociate Executive Director, Membership

Standing, left to right:

Richard HenryAssociate Executive Director, Operations

Joan WiseGeneral Counsel

Thomas C. NelsonAssociate Executive Director, Field Operations

Cheryl CooperChief of Staff

Steven ZaleznickChief Executive Officer, AARP Services, Inc.

AARP Executive Leadership


Audit and Advisory Services. Audit and Advisory Services providesassurance and consulting services designed to add value and improveAARP’s operations. It accomplishes this by evaluating the effectiveness and efficiency of operations; the reliability of financial reporting; andcompliance with applicable laws and regulations.

Field Operations. Field Operations reaches and involves AARP members by working with volunteer and staff leaders to carry out AARP’s mission instates and communities. In addition to establishing and supporting AARP’sstate offices, it directs AARP community service activities.

General Counsel. The Office of General Counsel represents the Association’sinterests in legal matters in order to protect AARP’s image, name, programs,and services. It also anticipates and addresses legal issues to prevent legalproblems from arising, by working closely with staff and volunteers as newprograms and projects are developed.

Membership. Membership leads AARP in creating a valuable experience forcurrent and prospective members. It provides the knowledge, resources,and issue expertise to enrich the quality of members’ daily lives in the areasof health, economic security, independent living, consumer protection, andpersonal enrichment.

Office of the Executive Director. The Office of the Executive Directorimplements Board of Directors policies and directs and administers AARP’sactivities. It supervises and coordinates volunteers, staff, and financialresources, and provides support for the Board of Directors.

Operations. Operations provides an infrastructure of management services, resources, and systems for AARP staff and volunteers to conduct Association business. Operations includes financial planning and management, human resources, administrative services, andinformation technology support.

Public Affairs. Public Affairs conducts and analyzes policy research andundertakes public policy advocacy. It also publishes Modern Maturity,My Generation, and the AARP Bulletin. Other Public Affairs activitiesinclude AARP’s branding campaign, communications, internationalactivities, and outreach to corporations, nonprofits, and others.


insurance rates. There were close to 600,000 program graduates in 2000. Tax-Aide providesfree tax return preparation primarily for low- and middle-income people and those overage 60. It is administered by the AARP Foundation in conjunction with a grant from theIRS. Tax-Aide broke its own record by assisting more than 1,644,000 people during the 2000tax season. Tax-Aide is staffed by more than 30,000 AARP volunteers and is our singlelargest volunteer-based program.

In conjunction with the Department of Labor, the AARP Foundation operates the AARPSenior Community Service Employment Program (SCSEP), a program designed to train andtransition low-income older persons into paid employment. AARP’s SCSEP program had a51% placement rate in 2000, the highest of all national sponsors. There are 102 AARP-spon-sored sites in 33 states and Puerto Rico. In 2000, the program’s participants provided nearlyeight million hours of community service in their temporary assignments as they preparedfor employment.

As the illustration shows, federal grant and other program expenses of $78 million repre-sent expenses of the AARP Foundation funded by federal grants and third party contribu-tions, and supplemented by AARP contributions.

Programs and field services expenditures of $110 million support 55 ALIVE, the telemarket-ing fraud program, member education, community presence, volunteer coordination, andother programs.

AARP’s advocacy and research services total $56 million, or about 10% of total annualexpenses. Major advocacy efforts include preserving Social Security; enhancing Medicare(including establishing prescription drug coverage); ensuring the quality and availability oflong-term care; and preserving pension rights. Research supports advocacy and memberservices and provides information on important trends and member needs.

Member services and acquisition amounted to $98 million. Our growing membershipstrengthens AARP’s advocacy and research efforts.

In 2000, $76 million was expended for supporting activities, including expenses for humanresources, information technology, and financial, legal, and audit services.

AARP anticipates making additional investments in our state capacity project in 2001, aswe move to expand into all 50 states, the District of Columbia, Puerto Rico, and the VirginIslands. This investment, which will reduce our available reserve, will enable AARP toachieve its vision of excelling as a dynamic presence in every community.


For a complete copy of the Association’s 1999-2000 financial statements, go to www.aarp.org/ar,call 1-800-424-3410, or write to AARP, 601 E St., NW, Washington, DC 20049.


FinancialsSummary of 1999 – 2000Consolidated Financial Statements

AARP’s 2000 consolidated financial statements report a strong financial position. Thefinancial statements were audited by our independent accountants, Arthur Andersen LLP,who expressed an unqualified, or “clean,” opinion on these statements. Operating resultsyielded a surplus of $21.6 million for calendar year 2000. This surplus was principally theresult of more than expected investment income for the year due to higher than anticipat-ed coupon returns and gains in the market.

Expenses reflect activities in 2000, during which AARP initiated several important programsto better serve our members: we laid the groundwork for My Generation magazine andredesigned Modern Maturity; we provided services for a growing membership, whichincreased to over 34 million; we improved and enhanced AARP Webplace; and we contin-ued internal restructuring and building our presence at the state level to enable us to bemore responsive to our members’ needs.

Where did the money to support all our activities—including those that are communitybased—come from, and exactly how was it spent?

Revenue. Our total revenuein 2000 was $580 million,up approximately 20% from1999. As it should be, mem-bership dues of $145 mil-lion was our single largestsource of revenue, followedby $106 million from royal-ties and other programsand $98 million from AARPHealth Care Options.

Expenses. Now let’s look at the cost of providing member benefits and services. The illustra-tion shows that our publications—Modern Maturity and the AARP Bulletin—cost $140 mil-lion to produce and distribute to our members. Advertising revenues help defray thesecosts. Both ModernMaturity, published sixtimes annually, and theAARP Bulletin, published 11times annually, go to nearly22 million households.

AARP continues to invest in community educationaland member service activi-ties. Our three largest pro-grams are AARP 55 ALIVEDriver Safety Program, AARP Tax-Aide Program, and the AARP Senior Community ServiceEmployment Program. The 55 ALIVE Program provides driver education to older drivers,which makes them safer behind the wheel and can significantly lower their automobile

Investment and other income

$79 million (13.6%)

Advertising income

$74 Million (12.8%)

Federal grant and other program revenue

$78 million (13.4%)

Income from AARP Health Care Options

$98 million (16.9%)Membership dues

$145 million (25%)

Royalties and other programs$106 million (18.3%)

2000 Revenue $580 million

Headquarters and facilities administration

$76 million (13.6%)

Legislation, research

development$56 million

(10%)

Program and field services$110 million (19.7%)

Member services and acquisition

$98 million (17.6%) Publications

$140 million (25.1%)

Federal grant and other program expenses $78 million (14%)

2000 Expenses $558 million

AboutAARP


AARP is a nonprofit, nonpartisan membership organization for people 50 and over. We provide information and resources; advocate on legislative, consumer,and legal issues; assist members to serve their communities; and offer a widerange of unique benefits, special products, and services for our members. Thesebenefits include AARP Webplace at www.aarp.org, Modern Maturity and MyGeneration magazines, and the monthly AARP Bulletin. Active in every U.S. stateand territory, AARP celebrates the attitude that age isn't just a number—it's abouthow you live your life.

AARP Andrus Foundation, established in 1968 as a memorial to AARP founder Dr.Ethel Percy Andrus, is a 501(c)(3) charitable and educational organization affiliatedwith AARP. The mission of the Foundation is to enhance the lives of older personsthrough research. Tax-deductible contributions support efforts to help individualsmaintain independence throughout life. The Foundation accomplishes this workthrough aging research, educational initiatives, and public information programswith emphases on financial security and living with chronic health conditions.John Feather, Ph.D., is director of the Foundation.

The AARP Foundation is an affiliated, 501(c)(3) nonpartisan charitableorganization, established in 1961. It administers publicly and privately fundedprograms, such as AARP Tax-Aide and the AARP Senior Community ServiceEmployment Program. AARP Foundation Litigation attorneys are involved in courtcases throughout the United States affecting the rights of people 50 and older. The Foundation also carries out the Washington, DC-based advocacy programsfunded through Legal Counsel for the Elderly, Inc. These programs also receivesupport from AARP. The AARP Foundation is co-administered by Sue Miler andWayne Moore.

AARP Services, Incorporated (ASI) is a wholly owned and independently operatedsubsidiary of AARP. It serves AARP’s 34 million members through a wide range ofproducts and services, product management, marketing, and an enhancedInternet capability. SteveN Zaleznick is the Chief Executive Officer.

Acknowledgements

PhotographyMichel Bakari, 21Linda Bartlett, 18, 20, 25 Mark Garvin, 2, 15, 17John Harrington, 3, 27Blaise Hayward, 26John Henley/Stock Market, 6Suzy Hess, 23Image Producton Services, Inc., 5Edmund Keene Photographers, 22, 24-25, 25, 31Michael Keller/Stock Market, 5, 8-9Kathy Seward MacKay, 15, 16, 18-19, 28Jean Miele/Stock Market, 8Roy Morsch/Stock Market, 6-7Jose L. Pelaez, Inc./Stock Market, 9Raymond T. Rufo, 20Ariel Skelley/Stock Market, 12Dick Slease, 1, 3, 26-27Strauss/Curtis/Stock Market, 24Donald Vance, 28-29Davis Young Wolff/Stone, 30-31

Additional photos from Photodisc, Eyewire

Photography ResearchCorbis Stock Market, New York, NYFeldman and Associates, Chicago, IL

Additional photographyMelanie Alden-Roberts, Tyrone Curtis, Ken Dean, Karen Deans, Janelle Haskell, Karen Kim, Lily Liu, Bob Martindale, Dipo Ogunrinde

Writing, Editing, Design, and ProductionAARP Creative DepartmentAARP Editorial Management Department

PrintingCavanaugh Press

© 2001, AARP


Documents

2000 Annual Report - AARP601 E Street, NW Washington, DC 20049 D12594 (501) Your Choice.Your Voice.Your Attitude. 2000 Annual Report