If you take last years money and had converted it to euros, the money would
be more valuable in dollar terms then the 4% interest that you indicate.
It would not be a wise act of management to engage in currency speculation.
Also on euro you can get 4% interest. My point is not
about the dollar or
the euro; when you spend when you get it, the difference is not that
relevant. At this moment in time we are raising more money then in the
previous round from donations. We are still growing rapidly in many
Any plan to depend on growth over an extended period of time will be on
shaky ground. It can work over a limited time period, but we must not
become addicted to growth.
Last year some people made a lot of ugly noises during
the fund drive. It
may be the reason why we do not have matching donations. I think it shows
how irresponsible this has been.
I can't blame Virgin if they don't want to go through the same
experience again. The True Believers can have a hard time understanding
how being doctrinaire about our principles can be so counterproductive.
When we are going for the defensive measures you
suggest, we will not have
enough money for our current budget. We will not be able to expand into
sourly needed capability. I do not know how to defend the defensive
financing that you propose.
A contingency reserve makes good financial sense. In
the absence of big
endowments a percentage of all net donations can be budgetted into a
contingency reserve until that fund is built to the desired size. When
it is built up the investment income can be used for other things.