The following summary of financial information is derived from the consolidated statements of activities
and financial position of AARP and its affiliates for the year ending December 31, 2009.
AARP’s total operating revenues in 2009 were slightly less than $1.42 billion as compared to $1.08 billion
in 2008. The $412 million increase in net assets included $190 million in investment income, while
other streams of revenue were relatively flat or declining on a year-over-year basis. Total revenue in 2009,
excluding investment income, was down $28 million or 2 percent from 2008.
In response to deteriorating economic conditions at the end of 2008, AARP designed and implemented
an austere budget that included a series of steps to protect the financial health of AARP. These painful but
necessary reductions in operating expenses included a reduction in member-acquisition efforts and brand
advertising, reductions in labor and staffing levels, suspension of merit and incentive pay, and reductions
in certain benefits. However, legislation and research increased by $42 million, or 71 percent, as AARP
increased its expenditures related to health care reform in 2009. For the 2009 year, AARP limited operating
expenses to $1.02 billion, down 10 percent from 2008.
By year’s end, thanks to prudent financial management, AARP’s statement of position reflected an increase
in net assets of $412 million, enabling us to remain well-positioned in the future to advance our mission of
helping people 50+ to improve the quality of their lives.
The complete AARP 2009 Consolidated Financial Statements with Independent Auditors’ Report is