Capital Regiment Inactive

[JimF-LowBari]

A 501©(3) public charity can carry a balance across fiscal years.

True in PA..... Old car club I belong to has regained it's non-profit status and usually cares a bunch of $$$ on it's books. Allowed to have money on hand all year because of operating expenses (expecially the October car show in Hershey).

Can't remember why it lost it's non-profit status in the first place..... All I remember is they have to be careful on what the money is spent on.

IOW - "non-profit" is a VERY misleading term....

Edited January 6, 2010 by JimF-3rdBari

[brucerobertt]

Debt and probably new equipment gearing up for a comeback. Keep in mind that you have to show a net of ZERO each year as a non profit. I'm sure there is a little magic in the numbers but you still have to pretty much empty the account at the end of the year ... or show a loss. There's no way around it.

The $440,000ish numbers do include about $20,000 of interest expenseand depreciation on equipment. Just saying by showing the figures their financial model is not sustainable.

[mobrien]

Keep in mind that you have to show a net of ZERO each year as a non profit.

Nope. In fact, one of the signs of a well-run non-profit is that they DO show a surplus at the end of the year. I'm much more comfortable supporting those orgs who can show me that they know how to run themselves responsibly and that they are able to generate enough revenue across the board that they can build a cash reserve to use for expansion or rainy days. THOSE orgs are the ones who'll be using my contribution to actually do what they're supposed to be doing rather than using it to pay off past creditors.

Non-profit simply means that the Board members and others who contribute to the organization do it with no expectation of personal profit-taking out of the organization's revenues. As far as Exec Directors being on the Board, that's more common than not, though they ED is usually in an ex-officio position when it comes to major financial votes. If they only had 3 Board members, it's unlikely that he was refraining from voting.

In Illinois you can have a non-profit with as few as 3 Board members too, but once you're doing more than a hundred thousand a year in revenues, there'd be some expectation that the Board will have grown to meet the increased needs of fundraising and governance that go along with bigger budgets. Not too many foundation grants will go to those who don't have an actual functioning outside Board.

Edited January 6, 2010 by mobrien

[Blackstar]

One of the best ways to make money is to be a non profit. As the head of a non profit someone could say thier salary is $x which could be 70% of the income of the non profit. As long has they spend the remaining percentage on whatever it is thier supposed to no one can say anything. Alot of non profits who solicit funds have a very small return on donated dollars.

[dannyboy]

Hopefully they can learn from the previous two times and come back for awhile and go back to World Class.

I don't forsee a material change in the organizational structure. I think WC is simply too expensive to build back to/maintain for their diminishing bingo/gaming to finance.

In 10 years, there has been virtually no outreach to the Columbus business community. Everything has been focused on bingo/gaming.

In winter/spring of 2006, I contacted Columbus Foundation, Wendy's International, the Ingram Family (White Castle), Limited Brands Foundation, Worthington Industries, Huntington Bank, Bob Evans Foundation and others -- but was unable to provide required/requested 2005 Financials or a 2006 Operating Plan/Budget. They would not talk to me, or I could not complete grant requests without that financial information. My hands were tied. I gave up. Even if I DID have such documentation, many of those grants are on a 1-year cycle, and Capital Regiment needed money "now" to start tour. A few of the grants had fall 2006 application deadlines/cycles, so funds would not have been available until fall of 2007.

[ShoopDaWhoop]

CR was awesome last year....

[CasualFan]

Debt, probably? I would guess.

While Cap Reg did reduce their debt load in FY 2008, that is not considered an expense. The interest on the debt is expense but not the debt itself, which is a liability. As of 9/30/08, Cap Reg owed $134,000 for loans/notes payable.

During their seasons of inactivity, what could they be spending $440K on? It seems a bit much for an inactive corps. Any ideas on what Southwind is spending right now?

For FY ending 9/30/08, management and program services expenses:

Salaries, wages, benefits and payroll taxes: $138,000

Accounting/Legal fees: $12,500

Supplies: $14,000

Telephone: $5,000

Occupancy: $104,000

Equipment rental and maintenance: $20,000

Printing: $3,000

Travel: $12,000

Postage: $3,000

Interest: $8,000

Depreciation: $40,000

Advertising: $6,000

Show Contract: $20,000

Office expenses: $13,000

Donations(?): $24,000

The above amounts do not include any direct expenses related to bingo (payouts, rental of bingo hall, advertising, concessions and supplies). The above expenses do include expenses related to the Artistry in Motion show ($105,000) and the drum corps ($77,000). I don't understand how a non-existent drum corps racks up $77,000 in expenses but that is what they reported on the 990. Another interesting fact: ticket sales for the Artistry in Motion show were reported at just under $27,000. Does it make sense to continue putting on a show that costs 4 times what it generates in revenue?

One of the best ways to make money is to be a non profit. As the head of a non profit someone could say thier salary is $x which could be 70% of the income of the non profit. As long has they spend the remaining percentage on whatever it is thier supposed to no one can say anything. Alot of non profits who solicit funds have a very small return on donated dollars.

This is the very reason why certain states are now regulating not-for-profits much more closely, i.e. New Hampshire and Spartans. And yes, people can say something, just ask Jim Bakker.

Edited January 7, 2010 by CasualFan

[Blake13]

It's just odd though, they went inactive while being a World Class corps. Evidently there was also staff issues in 06 that didn't help matters and got most of the corps believing false info.

Maybe when times pick back up, corps won't have problems related to money so each one can be stable. I'm sure the bingo when they were Div. 1 was going pretty good and they had more members for the member fees to help with things. They also run their own "home show" and I think they will still run it this year.

[roosevelt]

It's just odd though, they went inactive while being a World Class corps. Evidently there was also staff issues in 06 that didn't help matters and got most of the corps believing false info.

They went inactive in 06 because of mismanagement. DCI had to step in and take over the tour midway through.

The staff issues in 06 were simple. They all quit at the end of the season due to the corps mismanagement. Not that it really mattered... everyone knew the corps was going to go inactive at the conclusion of the summer.

[drummerkid418]

Can I buy their food truck? I hear it even has a shower in it!