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posted by the Chess Foundation Treasurer, Paul Leblanc
In case it falls off the old board,
The Foundation was approached by the CFC several months ago for an emergency loan of $30,000. I spoke with the Treasurer, Bob Gillanders to determine if the need was genuine and formed a conclusion that the CFC could not continue to operate without the loan.
The Foundation trustees discussed the request thoroughly and voted unanimously to advance the CFC a loan of $30,000. The loan is documented in the Foundation Annual Report tabled and accepted at the recent AGM.
There was no condition that the building be sold although it was suggested that this is one of the ways the CFC might repay the loan.
The only condition to the loan was that the Foundation's investment income, normally remitted to the CFC annually, would be retained by the Foundation pending re-payment of the loan. This in itself will repay the loan over several years.
There has been no request for further support to the CFC from the Foundation.
Personally, I would look for very strong support from the CFC governors to accompany any future requests.
Hope this helps.
Paul Leblanc
Treasurer, Chess Foundation of Canada
Last edited by Kerry Liles; Thursday, 31st July, 2008, 04:23 PM.
Reason: wrong word in title...
Forget the Olympiad, Canadian Championships, junior programs and all of that. The emphasis on the revenue side of the equation (membership and rating fees) is misplaced. The CFC should be in damage control mode and should cut to the bone. If funds for these other events can be raised, so much the better, but what expenses are unavoidable?
For many years (since 2000, when the principle was painfully ignored) the BCCF has adopted a simple policy - don't spend money it doesn't have. As an experiment, maybe the CFC should try the same thing.
Well, one obligation is passing on funds to the provincial organizations (on whose behalf the CFC collected funds). Speaking only for the OCA (which had a balance of -$2 when the AGM concluded in June 2008), the CFC owed the OCA quite a chunk of change. Some of that has been sent to the OCA and will, in turn, be distributed to the 4 Leagues that comprise the OCA.
The CFC also had outstanding invoices from FIDE and who can possibly guess who else... Fiscal management was poor (and that is giving it a HUGE undeserved benefit of the doubt).
A better question might be "What did the CFC waste money on?" (to which a wag would answer "nearly everything it bought").
I am hoping the new administration will set things right; however, in my personal case, this is the last administration that I will give that chance to.
It seems less a loan than an advance, a borrowing from the future to pay today. The CFC won't be getting payments from the Chess Foundation for several years to come until the $30000 has been covered. This leads me to the the question of what happens when the CFC burns through the $30000?
It seems less a loan than an advance, a borrowing from the future to pay today. The CFC won't be getting payments from the Chess Foundation for several years to come until the $30000 has been covered. This leads me to the the question of what happens when the CFC burns through the $30000?
I don't think the foundation should have lent the CFC the money. It would have forced them to take action sooner.
Chess is being marketed as a kids game. Usually when there is TV coverage it's focussed on kids chess.
That's fine. However, the CFC should not expect to attract large numbers of adults. Most balanced middle aged adults with a triple digit I.Q. aren't spending a day or two a week, or an entire weekend, hanging around and competing with kids.
In ye olde days, when the CFC needed money, it just deferred payment to the Business Manager. With the Business Manager's agreement. Those were different days, though. The deferred payments were an investment in the future success of the CFC (and thus of the BM who was paid on an incentive basis), whereas now the ED is salary-only (AFAIK), and today if you put a nickel down the CFC toilet^H^H^H^H^H^Hslot machine, you want to have a string tied through the hole in the middle. The two biggest expenses now are the office and salaries, both of which came under the category of payments to the Business Manager, back in those days.
Although we're all pleased that the Executive Director is doing things expeditiously, where his predecessor, ah, wasn't consistent, we (the CFC; I'm retrospectively possessive) are paying a full salary for reduced responsibilities (no magazine, membership down, sales down a lot), and are footing a travel bill. AFAIK. Though it's the office where there is a more glaring gap between usefullness and expense.
But nevermind, we're looking forward to a restructuring plan from the new Exec in a few days. For consideration and then expeditious vote by the Governors.
Peter Stockhausen has just posted this on the old Chess Talk:
Hi Bruce,
I did see your message on what I call the "geek site" and was unable to negotiate a log in to provide a bit of an answer. So hopefully you read this.
1, FIDE Fees
About $10,000 a year of which some might get recouped through the FIDE rating fees from organizers.
2, The Condo
About $18,000 between property taxes, heat, light and power, condo assesments etc.
3, General Office costs
Maybe $ 5,000 for phones, postage, bank fees etc.
4, Salaries & Wages
About maybe $60,000. Manning the phone answering e-mails, doing the ratings, ordering B&E, shipping B&E, renewing memberships etc.
5, Audit
We are a charitable org. so regular audits are required. Watson does it for something like $3,000, a REAL steal.
6, Magazine (not since March)
About $8,000 an issue between editorial costs, contributors, printing, paper and mailing.
7, Book and Equipment Purchases
Depending on sales.
I sincerely hope that David gets around to analyzing this, and a "re-invention" of the CFC looks more and more necessary. It has been done in the past, so why not now....
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