On Sat, Oct 11, 2008 at 9:54 AM, Nathan <nawrich(a)gmail.com> wrote:
There has been a lot of chatter lately in the news
about the potential
impact on charitable giving of the current economic crisis. I notice that
the 08/09 budget calls for Q2 revenues of $3.5M., a total annual donation
revenue of $6M and an annual revenue of $7.3M.
The budget is fudged to make it look like the Foundation is going to spend
more than it actually is going to spend. Sue has even admitted this, though
she used some euphamism like "conservative" instead of "fudged".
Since the bulk of the annual revenue is to be acquired
in this quarter, and
the world is currently engaged in a serious financial crisis, what
adjustments or contingencies has the Foundation planned to mitigate a
downturn in gift revenue? The actual spending budget has a built in cushion
of $1.3M, but the budget indicates that the cash reserve as of the end of
September was anticipated to be in the hole $752. With a negative reserve,
a
threat to revenue and a very poor borrowing environment are the finances of
the organization still secure?
Every year someone comes up with this "sky is falling" analysis, and every
year the Foundation comes out with a bigger surplus. See
http://blog.p2pedia.org/2008/06/foundation-who-cried-wolf.html
Anthony