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If you start your "realistic" scenario with the concept of a grant coming in for a drum and bugle corps, you're starting with a bad premise.

Drum corps don't get grants. Very few, in any case. There are generally way too many other organizations that are much more deserving of foundation/corporation support for a drum corps to snag more than a few hundred dollars, if anything. Even more to the point, in this day and age, if a foundation is considering making a major gift, they do due diligence to make sure that their support is NOT the only thing that will keep the organization going.

Showing a funder a picture where you need the grant in order to stay in business is the surest way not to get it.

Edited by Slingerland
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If you start your "realistic" scenario with the concept of a grant coming in for a drum and bugle corps, you're starting with a bad premise.

Drum corps don't get grants. Very few, in any case. There are generally way too many other organizations that are much more deserving of foundation/corporation support for a drum corps to snag more than a few hundred dollars, if anything. Even more to the point, in this day and age, if a foundation is considering making a major gift, they do due diligence to make sure that their support is NOT the only thing that will keep the organization going.

Showing a funder a picture where you need the grant in order to stay in business is the surest way not to get it.

I could name you grants which have been applied for and received by various corps, boosters, drum lines, guards, bands, but I am not at liberty to post third-party information and quite frankly do not want to delve into a conversation over the minutia of various revenue sources. But that is not the point; the point of this exercise is to figure out a way to get around the conundrum of staying in the black not to nit-pick and quibble over minutia within the scenario; which, by the way, people tend to do when they just do not want to actually answer the main thrust of the question. So, if you like, for all I care just change the stinking ‘grant’ in the scenario to any potential revenue source in which you believe drum corps occasionally receive outside of dues and bingo. Then figure out some possible solutions and post your thoughts; or you can continue to just quibble, it is your choice.

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Bingo is a suckers' game. BD is making it work - for now. That will not always be the case (do any of us under the age of 50 know anyone who plays Bingo? No? I rest my case.)

Oh, I'm sorry, was I just quibbling again in your "realistic" scenario? Sorry.

How about this for "realistic" - if you want a run a million dollar charity, and don't have access to people with the pockets deep enough and the passion great enough to grab your vision and make it real, either get a different vision or fold up shop.

There are very few drum corps who didn't fold up when the deficit of talent in the adult ranks made itself manifest. The scenario you've laid out is of an organization whose problems go beyond the minutiae of grants or bingo, blah blah blah - they clearly don't have anyone in the room who knows how to run a successful small business, so the best thing they could do is go find someone who does before the next meeting.

Edited by Slingerland
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Bingo is a suckers' game. BD is making it work - for now. That will not always be the case (do any of us under the age of 50 know anyone who plays Bingo? No? I rest my case.)

Oh, I'm sorry, was I just quibbling again in your "realistic" scenario? Sorry.

How about this for "realistic" - if you want a run a million dollar charity, and don't have access to people with the pockets deep enough and the passion great enough to grab your vision and make it real, either get a different vision or fold up shop.

There are very few drum corps who didn't fold up when the deficit of talent in the adult ranks made itself manifest. The scenario you've laid out is of an organization whose problems go beyond the minutiae of grants or bingo, blah blah blah - they clearly don't have anyone in the room who knows how to run a successful small business, so the best thing they could do is go find someone who does before the next meeting.

Ok; your solution is for the Board to fire the administration in Feb, even though the administration has thus far kept the organization in the black, and the administration is attempting to look out for the best interest of the organization by keeping it in the black; and then the Board should axe the bingo, take valuable time looking for a new administration who could raise close to $100,000 in new revenue by June, while the corps is preparing to embark on a national summer tour in just four months. Got it; thanks for the input.

Edited by Stu
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Bingo is a suckers' game. BD is making it work - for now. That will not always be the case (do any of us under the age of 50 know anyone who plays Bingo? No? I rest my case.)

Their bingo program has been running like a well-oiled machine for decades. Same with SCV. It would appear people join it as they age, they get into bingo.

On the actual topic, if the corps' only option is take out the emergency fund, then I'd recommend they shorten their tour. To be a full-time DCI unit, corps must only compete from San Antonio to the end. That's how Surf operated their first few years to build an economic base. If they're a MidWest or East Coast group, they can hang out locally and do shows/community performances until the week of San Antonio, and then head out. West Coast groups can as well, but there's a big travel cost related to traveling straight to Texas.

Edited by fsubone
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On the actual topic, if the corps' only option is take out the emergency fund, then I'd recommend they shorten their tour. To be a full-time DCI unit, corps must only compete from San Antonio to the end. That's how Surf operated their first few years to build an economic base. If they're a MidWest or East Coast group, they can hang out locally and do shows/community performances until the week of San Antonio, and then head out. West Coast groups can as well, but there's a big travel cost related to traveling straight to Texas.

And another thank you goes out! As long as honesty is presented to the staff and performing members on ‘why’ this would be occurring I think they would handle the announcement of the truncated tour, though some disappointment would creep in. As for the cost of the travel distance directly to Texas, that may be true for the semi-trucks per mile situation, but with charter buses it is often times a set per/day rate, last I checked around $1000 per day per bus, which is not necessarily dependent on millage.

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No, but there is extra credit available for participation.

Extra points will be given for unique solutions and/or sardonic wit.

Still won't help me pass. Oh well, there's always summer school.

Wait a second -- is there enough money for summer school????

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This is becoming an incredibly detailed scenario...
An exciting campaign of the hit role-playing game, DCI Admin D&D, featuring Stu as Dungeon Master! I'm not a business oriented person for anything bigger then our family budget, so my one and only other comment would be to have the Chairperson with the highest XP to get out their Calender of Touring and cast a shortening spell (DC 8, no saving throw.) :tongue:

Edited by troon8
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As a member of the Board, I'm going to sit here and gather facts as needed to begin to formulate an opinion of the depth and severity of the problem. As a member of the board, that's my job. I'm not about to start spewing conclusions before the chairman even calls for opinion. I'm going to begin thinking about how I can be helpful to the administration in solving their problem. That is, presumably, why I'm a member of the board and not chairman of the board.

If my role is chairman of the board, and with the presumption that the person delivering us this news is the CEO of the organization, here's my answer:

In the first place, the discussion we had about my management style was done in private and was presumed to be, as all non-public conversations between us are presumed to be, sensitive and confidential. I did not share my opinions with the executive committee so it's obvious that you did. I resent that fact, consider a breach of confidentiality, and am alerting you that your carelessness will cause me to be more guarded in what I say during our private conversations. This may impact how smoothly we operate as a team - a responsibility I lay solidly on your shoulders.

Most egregious is your attempt to use our private conversation as some basis or justification for the position in which you now find yourself. You asked my opinion. That you've up until now decided to implement my opinion in your executive position, and apparently not very well, is your doing, not mine nor this Board's.

Now, to the issue at hand...

Two years ago you came to us and asked us to craft a plan to provide more certainty to the financial health and longevity of the organization. After months of deliberation by this body we brought you our recommendation. After analyzing it you asked us to formalize the plan and hold ourselves responsibility for following it. We did that.

That plan required the corps to spend no more than 80% of it's historic 5-years average program expense. That first year you failed to reach that goal based upon two things: 1. You didn't have enough time from our decision to implement the design changes necessary, and 2. You felt the corps was close to breaking a placement threshold that again required spending nearly all of your revenue. You were convincing in your argument that the increased visibility from the higher placement would attract member tryouts that would replenish the coffers. You asked for an delay in implementing the rule and we agreed, but the placement and MM revenue never materialized. Then last year you again missed your design goals and spent all but the $30,000 we now have in reserve. The 80% limit has yet to be reached despite us providing you with a longevity plan requiring it. The 80% limit will remain in place until the corps has banked the prior-5-year's average program expense at which time the limit will rise to 90%. When 1 1/2-times annual program expense is in the bank the limit shall be lifted. Should cash flow subsequently turn negative, those limits will be re-implemented in reverse order.

The fact that you are here again, with similar results and, apparently, asking for forgiveness to a rule you agreed to follow, is clear evidence that you're failing again in your goal. You seem to be here asking something of us, but what are you asking for? Another reprieve? I'm sorry, we as a board have not been unaware of the circumstances and the risks of the funding plan you set out last fall. We've discussed - privately - and are not prepared to offer you another reprieve. You must simply meet your spending limits as this body voted on, and amended for your benefit.

The other part of that agreement specifically states the ramifications for failing to meet firm revenue/spending targets: The corps does not go on tour until, and unless, 75% of the funding for the entire season's expenses are secured with written agreements, while retaining the 20% cushion. Should the remaining funding not be secured during the remaining season and the corps ends up in the red, the Executive Officer will resign and a new CEO appointed.

The $30,000 cushion was implemented to secure the safety of the kid's return during any season when all funding failed. You may not access that, but I fail to see the logic in adding $30,000 to it this season when the odds of reaching the revenue goal have gotten worse. We can get the kids home on $30,000.

We, as a board, don't have the purview to solve your problem. Fundraising is the job of the executive committee and expenses are mostly design and logistic considerations; neither is our job. You asked us to formulate a financial plan, we did, and now we're holding you to it as is our fiduciary duty.

You may not leave on tour unless you can document 75% of program expenses have been retained. Should you run a deficit by the end of the year, we'll ask for your resignation.

I'll remind you that DCI has offered its line of credit to any corps in fiscal crisis on the road. And I'll also remind you that the bylaws prevent you from signing debt notes without the Board Chair's contrary signature.

I'm sorry you find yourself in this situation. We hope you find a solution, and we'll look forward to getting the CFO's report at the end of May.

Anything else?

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Before we continue I would like to clarify a few things:

1) If the Board President believes that any conversation he has with the CEO concerning any portion of organizational criteria is ‘private’, I respectfully request the President to reference the bylaws which state; “It is the responsibility of the President and CEO to maintain direct communication in-between Board meetings concerning organizational matters and keep the Board informed of any on-going discussions related to the organization”. The conversations were certainly pertaining to the corporation well-being and on-going matters and not just private chit-chat over a libation, and no private secrets were communicated by either party; moreover, the President was aware that the CEO was going to bring these matters to the table at this Feb meeting. So it is the duty of the CEO to actually bring forth these discussions to the Board.

2) As CEO, the performance outcome has never taken precedence over the financial stability of the organization; ever. Many ideas have been bounced around, and at the time a discussion did occur about the possibility of higher placements bringing in more youth which would potentially bring in more dues revenue; however, the CEO did remind the Board that organizations which relied heavily on dues for revenue tended to falter and fail as they climbed in performance rankings. A balance was then struck by all parties between looking out for the increasing performance quality of the corps and at the same time attempting to increase revenue sources outside of dues fees; which leads to the next item.

3) I am appealing to the minuets of the September meeting which show that along with the request of attempting to appeal to more youth via performance ranking, the recommendation by the CEO was that we must also diligently seek out funding from external resources; and if those two combined did not meet expected revenue goals by February, that the CEO would ask the Board to possibly allow for truncating the upcoming summer tour, or contracting some other organizational services, to make sure the organization stayed in the black. And to the CEO, keeping the organization in the black is paramount; even when projected goals of increased revenue are not met. The CEO contends that while it is true that the primary goal of any business is to make money, the CEO believes that the wise use of the money collected is just as important. And the CEO believes that sometimes the wise choice is to make some cuts in spending; not draconian, not flippant, but wise cuts to stay in the black; as opposed to the advice of the President which is to never ever cut anything. So, does the Board want to fire the CEO because they feel him to be incompetent, then do it; otherwise let’s dig into making sure the youth are well taken care of by not going into the red and figuring out some decisions before it is too late.

Edited by Stu
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