Tweet
All sectors of the US Chess financial operations were in good standing until a once in one-hundred-year pandemic brought on a sudden stop in the economy. Many over-the-board tournaments were victims of the pandemic, including the spring national events, which had to be canceled. Membership and membership revenue are directly related to these events. Recent monthly reports indicate an approximate membership revenue decrease of 26% for an annualized shortfall estimated at $500K for the upcoming year......
March 2020 was a historic test for our financial teams and investment strategies. Equity and credit markets went into freefall as the U.S. economy came to a sudden stop. US Chess suffered value losses in capital along with the market indexes. However, our portfolios held strong cash equivalent positions, healthcare equities, and bond substitutes that helped insulate them from significant long-term losses. Investments have become an important revenue center in the last three years. US Chess has investment portfolios of approximately $2.8 million and a dividend stream in excess of $50K per year. Fiscal year 2019-20 is at the auditors. Surplus projections indicate a gain of over $200K for the year. The US Chess net assets increased by $480,197 during the year (see graph). US Chess is financially in a very solid position without outside debt. Meanwhile, fiscal year 2019-20 finished with a surplus even with expensing the costs of a Phase I information technology upgrade. Core financial metrics are very good. The future is in the role of leadership turning a global pandemic into productive times for US Chess and its members. US Chess has the platform of experienced management and operations, volunteers with institutional knowledge, proactive leadership, generous sponsors, and financial good health. What more could we ask for—maybe a vaccine before next spring?
Chuck Unruh Vice President of Finance
This can be found at uschess.org
All OTB chess organizations will show a deficit in 20-21.
Larry
March 2020 was a historic test for our financial teams and investment strategies. Equity and credit markets went into freefall as the U.S. economy came to a sudden stop. US Chess suffered value losses in capital along with the market indexes. However, our portfolios held strong cash equivalent positions, healthcare equities, and bond substitutes that helped insulate them from significant long-term losses. Investments have become an important revenue center in the last three years. US Chess has investment portfolios of approximately $2.8 million and a dividend stream in excess of $50K per year. Fiscal year 2019-20 is at the auditors. Surplus projections indicate a gain of over $200K for the year. The US Chess net assets increased by $480,197 during the year (see graph). US Chess is financially in a very solid position without outside debt. Meanwhile, fiscal year 2019-20 finished with a surplus even with expensing the costs of a Phase I information technology upgrade. Core financial metrics are very good. The future is in the role of leadership turning a global pandemic into productive times for US Chess and its members. US Chess has the platform of experienced management and operations, volunteers with institutional knowledge, proactive leadership, generous sponsors, and financial good health. What more could we ask for—maybe a vaccine before next spring?
Chuck Unruh Vice President of Finance
This can be found at uschess.org
All OTB chess organizations will show a deficit in 20-21.
Larry
Comment