SPAR Budget Collapse?

[stephendare]

Two troubling things that have recently come up in several conversations and are being repeated around both the neighborhood and downtown.

As far as I know, they may be either true or untrue.

Does any know one way or another.

The first is kind of important to know.
Does SPAR have a 60 thousand dollar deficit this year?
The story is that the organization is totally broke ad 60k in the hole for upcoming expenses.

Is this true?
If so, how on earth could this have happened?

The second story revolves around the 'resignation' of Alexs, who has posted within these threads over the past few months.

The story goes that Alex presented the board with the requests outlined by the residents who are critical of SPAR and was subsequently told to shut up, drop it, start raising money for the huge deficit described above or resign from the group.

Is this true?

Are either of them true?

Has AlexS indeed 'resigned'?

[nvrenuf]

AlexS is very very very busy on his paying job so may not have time to answer so I will give the short version to which he can elaborate later if he so chooses. Yes, he resigned.

[JaxByDefault]

Shame to see Alex go. His resignation is a loss to SPAR.

I appreciate his service on the board, his dedication to the neighborhood, and recent attempts to bridge gaps between the board and disappointed members.

Many, many thanks, Alex.

As for SPAR facing budget woes, it is my understanding that this would be nothing new and that the organization struggles financially from year-to-year. A quick look at their yearly 990 makes it evident that they receive very little from membership dues (less than 8k last year), have a sizable amount of other donations that are likely locked-in target funds (i.e. crime fund), and have fairly high operating costs.

It is not unusual for non-profits to operate close to the wire. It is unusual to alienate membership while simultaneously needing thousands of dollars in donations for operating costs and matching grants. Dues are a fraction of their budget, so they've likely decided to push fundraising efforts to businesses, investors, and other large donation sources. Again, not unusual--but better fiscal transparency would make these issues clearer to the neighborhood and membership.

SPAR 990s (2002-2007) available at: http://foundationcenter.org/findfunders/990finder/  (Search terms: "Springfield Preservation" or "Springfield Preservation and Revitalization Council"

Information on reading 990s: http://www.npccny.org/Form_990/990.htm

[soxfan]

I'd like to see how you can associate this with DTP like everything else bad for Springfield and then you two can have another one of your monumentous pissing contests...

[thelakelander]

I hope not.

[strider]

Stephen, the easilest way is to just put "Springfield" into the search box.  It will then come up.  The newest I can see is dated 2007, but is the 2006 fiscal year. 

SPAR Council once did get a nice operating grant from the city.  I have heard that those funds are gone and have been for a couple of years, but I have also heard that there is still funding out there for some - through the city and through LISC.

Large donors usually want something in return.  Just means they must be careful about whom they get together with and what it is really going to cost the community.

[JaxByDefault]

Looking up SPARs 990's:

1. Go to: http://foundationcenter.org/findfunders/990finder/

2. Put in "Springfield Preservation and Revitalization" (w/o quotes) for search term. Use "32206" for the zipcode.

3. Links to 990s should appear in a table. The most recent is tax year 2007.

Guidestar (www.guidestar.org) also has the organization's 990s, but requires registering with an email address before viewing.

990s are useful, but comprehensive annual reports are usually a better way to judge the fiscal health of an organization. 

[JaxByDefault]

Large donors usually want something in return.  Just means they must be careful about whom they get together with and what it is really going to cost the community.

As with giving to any organization of this type, a donor can give to the organization's general fund in lieu of targeted funds. Most organizations prefer donations to the general fund because spending the money is less restricted. In most instances, general funds are limited only by the percentage of the endowment to be spent per year, not limited by where the funds can be directed. A large foundation may indicate that no more than 10% of the value of the general fund can be spent in any given year, but not restrict on what the funds may be spent. Some organizations--those lacking a sustaining cash endowment-- rely on annual fundraising for their entire general fund budget. SPAR seems to fit into this latter category, with the exception that it also holds limited endowment-like assets such as the building on Main.

Most university giving work the same way. One can give to the general fund, which can be used for operating costs, new buildings, staff hires, etc. Alternatively, one can target give to the scholarship fund or athletics. Donors that give targeted funds have specified the use for those funds, but most well established targeted funds are a net benefit to an organization.

One may be able to argue that large donors giving to the general fund are attempting to curry favor, but their control would lie in influence not over the actual purse strings.

Money only buys influence if one's influence is for sale.  The burden is always on the recipient.   

[sheclown]

What is the "other expenses" of $83,596.00 listed on the last 990?

[JaxByDefault]

I guess that would be the tax deductible private security force for the SRG properties, Sheclown.

Wonder if they split the tax benefits with the Non profit whose Tax ID made it possible?

If SRG receives a tax benefit by donating a majority of the crime fund, then that's just good business accounting on their part. SRG could always just write off private security as a business expense. Establishing the crime fund through SPAR may allow some tax benefit and a neighborhood benefit--not to mention good PR. The money from the crime fund is earmarked for neighborhood-wide use, not just for SRG properties.

However, as many have already stated here, SPAR should be more forthcoming about the source and expenditures of the crime fund.

[strider]

Exactly right, JaxBy Default.  In this case there has been some questions raised by a group of residents as to  whether the crime fund was used properly or did it concentrate the majority of it’s funds on areas where SRG had new houses.  In talking with those people, they have a good argument that it was the latter and that they saw no benefit from the fund.  They base their argument on both communications between principles of SRG, JSO and themselves as well as the lack of definitive information from SPAR Council.  Remember that the same JSO that tells them the criminal element was always there and that they shouldn’t live there is also the one saying that they can not come up with the information to show that the security fund was used properly.  When working under the security fund, they work for SPAR Council and whomever donated the majority of the funds. Combine this with the more recent issues and we seem to have an organization that is becoming very closed even to it‘s membership.  This has to make fund raising even harder than normal.   Unless, of course, a special interest group comes along and donates for reasons to it’s own benefit.

[FinnegansWake]

However, as many have already stated here, SPAR should be more forthcoming about the source and expenditures of the crime fund.

They are and always have been. The sources have been stated openly at every meeting I attended. By me (when I was Treasurer) and later by Mark F. and/or Louise. And the payroll expenditures for the off-duty cops are available as well. As are the crime statistics at the monthly Roundtable Meeting.

SRG has always been the biggest contributor to the crime fund.

Phil

[strider]

The idea of the security fund was started by SRG and was brought into being when I was  still on the board. I was against it because it was too easily abused and it didn't seem like what SPAR Council should be doing.  I didn't understand why it was so important to SRG if they only got a tax deduction when they could it as a business expense anyway.  So I always felt there was something else going on there. 

It is the lack of proof that it was evenly spread around the entire neighborhood that has upset some about it. You can't get that from the 990's, nor the newsletters nor JSO.

The actions of the SPAR Council executive committee, how it treats those that speak out about these issues, I'm thinking about other board members, not myself here, and the appearance that SPAR Council doesn’t want the transparency that many want it to have lends credence to the claims that things like the security fund have been handled improperly. 

On a more positive note, I read where there is a chance that the SPAR Council executive board is going to do the right thing and hold the Q&A session early in December.  If so, it will be a step in the right direction and if anyone has any questions about the budget, now is the time to get them into SPAR Council’s office.

[soxfan]

I think one of the problems with the statistics of the crime fund's use is that when the police relay them to us at any of the meetings, they lump them together with that of the regular police patrols. When they are asked which officers made which arrests (regular on duty vs. off duty crime fund recipients) they can't tell. WHY??? There is no reason to protect the identity of the officers as they are not undercover. There should be a report somewhere that identifies which officers are patrolling on duty and which are off duty. What happens if (God forbid) one of the off duty officers is killed or is forced to kill a civilian? Wouldn't the investigation include whether or not the officer was on or off duty? There should be a report as to where and when an off duty crime fund officer makes arrests and his or her activity. At my property we have been using off duty JSO to patrol our grounds. We get a report every week as to what they were doing at 1hr. intervals.. Why doesn't the crime fund officers do the same?

[uptowngirl]

That has alwasy been an issue. We can all see if it appears crime is decreasing, but how much of that decrease is due to officers being paid off duty through the fund or regular police work. I would never continue to pay for something if I don't know if it is working..