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History - 1950's
(Summary/Commentary)

Maturation may be the single best word describing the history of NAEB and other organizations serving the business side of higher education at mid century.  Clearly, NAEB was a key player in the evolution of the National Federation of College and University Business Officer Associations, the organization that became NACUBO, the National Association of College and University Business Officers.  For example, many of the organization’s early leaders had substantial previous experience within NAEB and the records show that the Association provided some of the early funding.  Bert Ahrens, Henry Doten, D. R. Kimrey and other NAEB people served on the initial board of directors of the “Federation.” 

At the same time, the E&I Cooperative was growing rapidly and becoming a substantial organization.  In 1951 the Co-op posted a banner year.  Sales to members were up 34%, and expenses under budget.  E&I was involved in a serious and frustrating, but ultimately unsuccessful, effort to be classified as a nonprofit organization by the IRS.  To avoid the need to pay corporate income taxes on that portion of revenue retained after expenses and used to operate the business, they adopted certificates of indebtedness that, in effect, identified the dollars involved as the property of members who were tax-exempt organizations. 

There were substantial changes within higher education as well.  Comments recorded in the proceedings of the NAEB annual meetings of the decade suggest that institutions were beginning to see students as customers.  Purchasing professionals were becoming more involved in a variety of business activities in addition to buying.  Acquisition of surplus federal property and disposition of surplus institutional property were discussed issues. 

Correspondence suggests that the Association’s Board of Directors appreciated the quality of service that Executive Secretary Bert C. Ahrens provided.  They voted to increase his salary soon after they learned that Bert had been contacted about possible employment with The Fund for the Advancement of Education, a New York-based philanthropic organization.  Bert stayed with NAEB.  Speaking of salaries, the results of a government-conducted salary survey were reported at the 1958 NAEB Annual Meeting. 

During the decade of the 50’s, the Association increased membership every year and its income grew tenfold.  Bert Ahrens recognized that individual involvement was the key to both member retention and recruitment. 

In a footnote to history, the files contain a press release mentioning John A. Pond’s service as wartime procurement officer of the Manhattan Project at the University of Chicago.  That top-secret program produced the first nuclear bomb.  Pond later served as president of NAEB in 1968.