A More Complete Picture of ONE Spark Financials
(http://www.metrojacksonville.com/assets/thumbs/image.3497.feature.jpg)
Joe Sampson the executive director of One Spark, recently shared with us a slightly more detailed accounting of the costs of ONE Spark, the Festival. It bears remembering that the financials of One Spark are not at issue in the ongoing story revolving around the Shad Khan financed KYN group. They are separate groups (as detailed in the letter) with separate finances. The information was presented to us simply in the spirit of full disclosure.
Read More: http://www.metrojacksonville.com/article/2014-oct-a-more-complete-picture-of-one-spark-financials
Good letter.
I'm appreciative of this letter.
His statement, "as Executive Director, responsibility for all things One Spark in Jacksonville (a completely separate entity from KYN) has started and stopped with me for the last 18 months" essentially loops Elton out of One Spark ,in a way.
Is Joe saying that any mismanagement that could have occurred at KYN could not have occurred at One Spark because he (joe Sampson) not Elton Reeves was at the helm?
"If they really want to be "transparent", they'd do well to stop stating that 260K people attended this year. 260,000 people did not show up to this. Approximately 50,000 people came multiple times. "
I am not sure I understand this infatuation with downplaying the numbers. Estimation of crowds is an art not a science. My wife and I only attended one night and it was clearly the hotest thing in town. If you replicate that attendence over several days I think they are right on with ~250,000. They don't state 250,000 different individuals attended.
I think the numbers are important. There is no need to over describe. We can appreciate where and what One Spark is without having to compare to much larger events. Downtown Jacksonville doesn't have to become Manhattan to be respectable.
It hurts the credibility of One Spark if the numbers are overstated...kind of like saying $1 million is available from Stache investments for creators, when in actuality about $100 was available. ;)
One person coming on multiple days has the same impact as multiple different people coming on only one day each. This is pretty standard practice for multi-day events. Whether it's the same people or different, it's still multiple days' worth of seats taken, booths visited, and food and beer bought. It also means the person decided to spend multiple days' worth of their free time and entertainment dollars doing this event instead of something else. This is pretty standard with multi-day events (in fact, places that ticket generally count multi-day passes for the entire duration, whether or not the buyer actually spent every day there).
If anything, I'd say One Spark has seriously understated its total economic impact. Unlike other events that try to put a dollar figure on their total impact, often making big assumptions, I've only seen One Spark tout the more quantifiable hotel stay figure, which is just one part of their impact on Downtown.
Quote from: Murder_me_Rachel on October 14, 2014, 01:08:05 PM
If they really want to be "transparent", they'd do well to stop stating that 260K people attended this year. 260,000 people did not show up to this. Approximately 50,000 people came multiple times. This event is is NO way whatsoever comparable to SXSW.
Also, as someone involved with OS at its very earliest stages: "To date, Elton...[has] not been on One Spark's payroll," does not appear true. I had it on very, very good authority that Elton was drawing over $100K in salary as of August 2012 (part of the reason I stopped my involvement, I thought that was absurd and indicated bad leadership). Maybe that changed, but I definitely trust my source as to the accuracy of that information at the time when it was told to me.
Axe to grind?? I guess when those people came a second or third night they came as ghosts and didn't buy more beer, more food and vote more?
Ok, so I am trying to compare the numbers given in Joe Sampson's letter to those in the 990 form, particularly the expenditures in part IX.
Some of the numbers were a straight forward match to the amounts given in the 990 form:
- Full-Time Staff ($256,977.36) matches line 5
- Contractors (Design, Content, Accounting Audit, Finance, Seasonal Admin.) ($54,041.00) matches lines 11 c+g
- Marketing ($216,024.96) and Digital Marketing ($34,867.04) match line 12 advertising and promotion
- It Systems ($119,715.24) match line 14 information technology
- HQ (Rent, Utilities, Internet, Phones, Furnishings, Software, Accounting, Etc.) ($53,175.75) matches line 16 occupancy
- Insurance ($20,670.44) matches line 23 insurance
So the remaining expenditures appear to be grouped under "Office expenses" (line 13) and "All other expenses" (line 24e).
This does not really seem correct as e.g. travel expenses have their own line (17) in the 990 form . Festival related expenses (Event Production) should - if I understand the 990 for instructions correctly - rather have been in line 19 (Conferences, conventions, and meetings).
Quote from: Murder_me_Rachel on October 14, 2014, 01:08:05 PM
If they really want to be "transparent", they'd do well to stop stating that 260K people attended this year. 260,000 people did not show up to this. Approximately 50,000 people came multiple times. This event is is NO way whatsoever comparable to SXSW.
I don't find any issue on how they reported the number. It's no different than the crowd estimates for TPC. Lots of the same people go for different days of the tournament.
I believe SXSW only counts visitors once. From their 2012 Economic Impact Study:
"At 147,000, the total number of SXSW Conference and Festival participants (defined as any individual who attended at least one SXSW activity) set a new record. SXSW also hosted numerous popular free to the public consumer events including the 3 night Auditorium Shores concert series, the 4 day Flatstock poster art show, and the 2 day StyleX fashion expo. Turnout at these functions pushed the total number of participants to more than 300,000. "
http://sxsw.com/sites/default/files/attachments/2012%20SXSW%20Economic%20Impact%20Analysis%20-%20FINAL.pdf
SXSW also isn't a free Art Walk style block party, so not really an apt comparison.
They say sunshine is best disinfectant.
I truly hope that One Spark, this excellent event/opportunity for the creative and entrepreneurial community of Jax, will continue and grow.
That said I do not blame Mr. Khan one bit for pulling his funding from KYN.
Wouldn't you if you found out that something like a mere 12% of your investment was going to the groups that you intended it for while the Lion's share was going to the administrative costs of a self appointed middle man and so called 'Business Accelerator"? A 'Business Accelerator'? Please, pull this other leg and it play a rousing version of I'm a Little Tea Pot at an accelerated pace.
Its quite telling that KYN closed its doors within 24 hours of Mr. Khan's withdrawal and its head has gotten out of town as fast as was possible.
Mr. Rummell has supported/enabled One Spark to exist and grow I deeply hope he will continue to do so but the public trust must be restored and that's a tall order as it stands.
It will take someone who has experience managing significant public/private partnerships, managing large public events and most of all someone whose integrity is beyond reproach.
I can think of a woman fits that bill perfectly and I would be very interested to know if her name comes up on here without my naming her.
Maybe a little game of who might she be by the engaged and passionate participants in this discussion. What do you say who wants to play "Who is that mystery woman with the impeccable qualifications???
Just out curiosity does anyone else notice that it sort of reads as if Sampson is saying Elton Rivas was just recently added to the directors roster?
Joe's letter says, "The amounts listed as paid to Elton and Dennis from their employers at the time were only estimates (which is what the form indicates). This information needed to be listed since they are officers of the company along with me and at the time, Vince." Varick Rosete, like Dennis was listed as a Vice President and check marked as an "officer". Yet nothing was listed for compensation to him. His bio tells me he was employed, so surely he had outside income too.
If Elton and Dennis were not paid by One Spark, what is the "related organization" they were paid by?
A 990 guide from the IRS says, "Under what circumstances must compensation paid by a related organization be reported on Form 990?"
For purposes of Form 990, related organization generally means a parent, subsidiary, brother or sister organization under common control, a sponsoring organization of or contributing employer to a voluntary employee beneficiary association (VEBA), or a section 509(a)(3) supporting or supported organization of the filing organization. An organization need not list individuals who are officers, directors, trustees, key employees or the five highest compensated employees of a related organization unless that person also serves in one or more of these capacities with the filing organization.
http://www.irs.gov/pub/irs-tege/Form990Part7FAQs_071013.pdf
Joe also said, "I am not affiliated with KYN in any way, nor is the One Spark team, with the exception of Elton, who only very recently began serving as CEO for One Spark as we work to scale the platform."
Sarah Davidson is listed as the current "VP of Marketing" for One Spark and has been since August of 2014. According to her LinkedIn, she was also hired as the "VP of Marketing" for KYN at the same time. I wonder how the salary split worked there?
Additionally, Lorrae Famiglietti was One Spark's Outreach Coordinator and Executive Assistant from January 2013 to August 2014. During that same period she worked at KYN as a "Launch Operations Manager". She was recently promoted to "Program Director" at KYN at which point it appears she left One Spark.
Olivia Fore was a PR Assistant at One Spark from Jan 2014 to April 2014 and then became "Community Director" at KYN in June 2014.
Dennis Eusebio is a Co-Founder and VP of One Spark and was "Chief Designer" at KYN from 2013 to June 2014.
There is an obvious desire for the group currently running One Spark to distance themselves from KYN, but the reality is they are sister organizations. I'll leave it at that for now....
Quote from: AuditoreEnterprise on October 14, 2014, 07:49:31 PM
Just out curiosity does anyone else notice that it sort of reads as if Sampson is saying Elton Rivas was just recently added to the directors roster?
Thats how I read it, as well:
Quote
with the exception of Elton, who only very recently began serving as CEO for One Spark as we work to scale the platform.
Odd that he is listed as President on the 990 form for
2012 .
QuoteI do have an axe to grind, yes. I believe this is dishonest and deceptive.
Attendance is measured this way at pretty much every convention, multi-day festival, etc... so I respectfully believe you are way off base with claims of dishonesty and deception.
One Spark 2013 had massive crowds. I was there from Melissa Ross' First Coast Connect shows at MOCA beginning at 9am until 2am every day (except Sunday where I was only in attendance for a few hours so I could catch up on sleep). It was a crowd that was comparable to the Super Bowl in 2005. I took issue with the Super Bowl comparisons in 2012, but in 2013 I would absolutely agree that crowds downtown were as big as the Super Bowl in Jacksonville. And I experienced Super Bowl 2005 in the same fashion as I did One Spark 2013. It's really hard to downplay the massive amount of people that attended One Spark in April 2013.
I've been to A LOT of conventions in my life (including SXSW). One Spark 2013 was impressive for year 2.
Stephen,
my issue was not with the number of visitors (as I know nothing about this) but rather with the finacial numbers. :-)
Quote from: devlinmann on October 14, 2014, 06:13:47 PM
It will take someone who has experience managing significant public/private partnerships, managing large public events and most of all someone whose integrity is beyond reproach.
I can think of a woman fits that bill perfectly and I would be very interested to know if her name comes up on here without my naming her.
Maybe a little game of who might she be by the engaged and passionate participants in this discussion. What do you say who wants to play "Who is that mystery woman with the impeccable qualifications???
Doesn't look like any guesses so far. Who is she?
^^Maybe it is Rachel. ;)
Quote from: Gunnar on October 15, 2014, 04:06:37 AM
Quote from: AuditoreEnterprise on October 14, 2014, 07:49:31 PM
Just out curiosity does anyone else notice that it sort of reads as if Sampson is saying Elton Rivas was just recently added to the directors roster?
Thats how I read it, as well:
Quote
with the exception of Elton, who only very recently began serving as CEO for One Spark as we work to scale the platform.
Odd that he is listed as President on the 990 form for 2012 .
The letter is clear that he is now the CEO...for the first festival in 2013, Elton was the Executive Director...after the festival Joe Sampson was named to that position for the Jacksonville festival.
Quote from: CityLife on October 15, 2014, 10:37:03 AM
Quote from: devlinmann on October 14, 2014, 06:13:47 PM
It will take someone who has experience managing significant public/private partnerships, managing large public events and most of all someone whose integrity is beyond reproach.
I can think of a woman fits that bill perfectly and I would be very interested to know if her name comes up on here without my naming her.
Maybe a little game of who might she be by the engaged and passionate participants in this discussion. What do you say who wants to play "Who is that mystery woman with the impeccable qualifications???
Doesn't look like any guesses so far. Who is she?
Theresa O'Donnell Price would have my vote.
Quote from: Tacachale on October 15, 2014, 11:15:47 AM
Quote from: CityLife on October 15, 2014, 10:37:03 AM
Quote from: devlinmann on October 14, 2014, 06:13:47 PM
It will take someone who has experience managing significant public/private partnerships, managing large public events and most of all someone whose integrity is beyond reproach.
I can think of a woman fits that bill perfectly and I would be very interested to know if her name comes up on here without my naming her.
Maybe a little game of who might she be by the engaged and passionate participants in this discussion. What do you say who wants to play "Who is that mystery woman with the impeccable qualifications???
Doesn't look like any guesses so far. Who is she?
Theresa O'Donnell Price would have my vote.
https://www.jaxdailyrecord.com/showstory.php?Story_id=536627
Quote from: tufsu1 on October 15, 2014, 10:48:24 AM
Quote from: Gunnar on October 15, 2014, 04:06:37 AM
Quote from: AuditoreEnterprise on October 14, 2014, 07:49:31 PM
Just out curiosity does anyone else notice that it sort of reads as if Sampson is saying Elton Rivas was just recently added to the directors roster?
Thats how I read it, as well:
Quote
with the exception of Elton, who only very recently began serving as CEO for One Spark as we work to scale the platform.
Odd that he is listed as President on the 990 form for 2012 .
The letter is clear that he is now the CEO...for the first festival in 2013, Elton was the Executive Director...after the festival Joe Sampson was named to that position for the Jacksonville festival.
I pulled their articles of incorporation from 2011 when they filed... Elton Rivas was listed as the President, incorporater and Registered Agent. Every other document that was filed after listed Elton Rivas as the top officer. So I dont know what Sampson is trying to say there... Also Joe Sampson is not listed on any incorporation documents or their amended Articles of Incorporation.
I also couldn't find one for KYN so it is either filed under a different name or in a different state all together.
I don't want to put words in his mouth, but believe he was trying to say One Spark staff is not involved with KYN. He said, "I am not affiliated with KYN in any way, nor is the One Spark team, with the exception of Elton, who only very recently began serving as CEO for One Spark as we work to scale the platform.
Prior to this, Elton had been President of the Board of Directors. Now it appears he is on staff as CEO.
As I mentioned earlier, the bolded claim appears to be false, as Sarah Davidson, is current VP of Marketing for One Spark and held the same role at KYN.
Quote from: Tacachale on October 15, 2014, 11:15:47 AM
Quote from: CityLife on October 15, 2014, 10:37:03 AM
Quote from: devlinmann on October 14, 2014, 06:13:47 PM
It will take someone who has experience managing significant public/private partnerships, managing large public events and most of all someone whose integrity is beyond reproach.
I can think of a woman fits that bill perfectly and I would be very interested to know if her name comes up on here without my naming her.
Maybe a little game of who might she be by the engaged and passionate participants in this discussion. What do you say who wants to play "Who is that mystery woman with the impeccable qualifications???
Doesn't look like any guesses so far. Who is she?
Theresa O'Donnell Price would have my vote.
+1
Quote from: CityLife on October 15, 2014, 11:19:47 AM
Quote from: Tacachale on October 15, 2014, 11:15:47 AM
Quote from: CityLife on October 15, 2014, 10:37:03 AM
Quote from: devlinmann on October 14, 2014, 06:13:47 PM
It will take someone who has experience managing significant public/private partnerships, managing large public events and most of all someone whose integrity is beyond reproach.
I can think of a woman fits that bill perfectly and I would be very interested to know if her name comes up on here without my naming her.
Maybe a little game of who might she be by the engaged and passionate participants in this discussion. What do you say who wants to play "Who is that mystery woman with the impeccable qualifications???
Doesn't look like any guesses so far. Who is she?
Theresa O'Donnell Price would have my vote.
https://www.jaxdailyrecord.com/showstory.php?Story_id=536627
I wouldn't put much stock in that 'audit' which appears to have a lot of political motivation. Special Events was far, far, far, far, far, far better off with Theresa at the helm.
Quote from: stephendare on October 15, 2014, 12:37:49 PM
Quote from: fieldafm on October 15, 2014, 12:06:27 PM
Quote from: Tacachale on October 15, 2014, 11:15:47 AM
Quote from: CityLife on October 15, 2014, 10:37:03 AM
Quote from: devlinmann on October 14, 2014, 06:13:47 PM
It will take someone who has experience managing significant public/private partnerships, managing large public events and most of all someone whose integrity is beyond reproach.
I can think of a woman fits that bill perfectly and I would be very interested to know if her name comes up on here without my naming her.
Maybe a little game of who might she be by the engaged and passionate participants in this discussion. What do you say who wants to play "Who is that mystery woman with the impeccable qualifications???
Doesn't look like any guesses so far. Who is she?
Theresa O'Donnell Price would have my vote.
+1
literally there couldn't be a better person
You three would know better than me. Just wanted some clarification that article.
Devlin, is this who you were thinking of? Would she go for it?
Quote from: CityLife on October 15, 2014, 11:46:09 AM
I don't want to put words in his mouth, but believe he was trying to say One Spark staff is not involved with KYN. He said, "I am not affiliated with KYN in any way, nor is the One Spark team, with the exception of Elton, who only very recently began serving as CEO for One Spark as we work to scale the platform.
Prior to this, Elton had been President of the Board of Directors. Now it appears he is on staff as CEO.
As I mentioned earlier, the bolded claim appears to be false, as Sarah Davidson, is current VP of Marketing for One Spark and held the same role at KYN.
Elton is listed as the top member on every document that One Spark, Inc ever filed. Joe Sampson was only listed on their latest report.
Here is a list of all the companies he is attached to.
Elton Rivas- One Spark Holdings, LLC
- KYN Jax, LLC
- Zero Confines, LLC
- Co Work Jax, LLC
- Crowdly, LLC
- One Spark, Inc
Inactive companies: The Solar Marketplace, LLC
I totally get what Joe is saying in the article. My flag goes up because it appears the structure though not offical was supposed to be
One Spark Inc as the parent company,
KYN as the incubator, (investing for returns)
Co Work Jax as the office space rentals to the new startups, (making profit through soliciting work space to startups)
and One Spark Holdings (their own version of Lemonis' Profit.)
Now a NPO can't legal be a member of a stand alone corporation or LLC so I think that may be why they chose to file all of those separately, but it is something we will never know until someone gets caught doing something shady. Let's hope that doesn't happen because I think the concept is great for, not only the city, but for the entrepreneur world in general.
Yes CityLife that is exactly the dynamic engaging and uttery competent woman to whom I was referring.
As others have stated I cannot think of a better choice that not only ticks all the necessary boxes needed to save One Spark, but to restore public trust and grow the event into one of the premier entrepreneurial/creative industry empowerment events in the country.
As a community we have the opportunity to be at the van guard of a movement that will radicalize the way startups are supported, nurtured and publicized.
Theresa if your ears are burning let me be the first to entreat you to step in.
If everyone else in this discussion agrees could someone with access to Mr Rummell and the Board of One Spark bring this suggestion to them?
Quote from: stephendare on October 15, 2014, 01:14:57 PM
hmm. considering the information, ricco, I think you have nailed it correctly.
I am just using comparison to try and figure it out. I get the NPO part of One spark, because on half a million dollars in income to the festival could result in some pretty hefty taxes and thus taking money out of the creators' pockets, but I honestly think they went about the rest of the organizing the wrong way. I am willing to bet that KYN Jax, LLC or One Spark Holdings, LLC are the ones seeking the investors money. Once they get it they pay the lower tax requirement to LLCs then "donate" it to the NPO. This donation, because they are seperate entities means the LLC can then write that donation off on their taxes.
Quotesave One Spark, but to restore public trust and grow the event into one of the premier entrepreneurial/creative industry empowerment events in the country.
Myself, along with thousands of others in town would welcome Theresa into any new role she would choose to take on because she is an incredibly effective person.
I am also firmly in the camp that I don't think One Spark needs 'saving'. Joe Sampson is also a highly effective person.
Quote from: fieldafm on October 15, 2014, 02:12:52 PM
Quotesave One Spark, but to restore public trust and grow the event into one of the premier entrepreneurial/creative industry empowerment events in the country.
Myself, along with thousands of others in town would welcome Theresa into any new role she would choose to take on because she is an incredibly effective person.
I am also firmly in the camp that I don't think One Spark needs 'saving'. Joe Sampson is also a highly effective person.
Here here.
Quote from: AuditoreEnterprise on October 15, 2014, 01:08:53 PM
One Spark Inc as the parent company,
KYN as the incubator, (investing for returns)
Co Work Jax as the office space rentals to the new startups, (making profit through soliciting work space to startups)
and One Spark Holdings (their own version of Lemonis' Profit.)
This is how it's done, isn't it? Non-Profits have always been extremely profitable to the people willing to start them. I mean, how many different LLCs (not non-profits) was Audra Wallace listed as a primary for? He was playing the same game, only using tax-payer money to do it.
Control the funding through your primary job. Create the businesses to spend the funding. Make lots of money up until the point you become unsustainable and then close down one LLC and move on to the next.
The key to this setup, as well as any business no matter how 'shady' the setup, is performance.
I'll still stand by my statement regarding the reason for the finances being pulled.
Edit:
Here's the thread that I was reminded of: http://www.metrojacksonville.com/forum/index.php/topic,19358.msg342467.html#msg342467
Quote from: Non-RedNeck Westsider on October 15, 2014, 04:16:18 PM
Quote from: AuditoreEnterprise on October 15, 2014, 01:08:53 PM
One Spark Inc as the parent company,
KYN as the incubator, (investing for returns)
Co Work Jax as the office space rentals to the new startups, (making profit through soliciting work space to startups)
and One Spark Holdings (their own version of Lemonis' Profit.)
This is how it's done, isn't it? Non-Profits have always been extremely profitable to the people willing to start them. I mean, how many different LLCs (not non-profits) was Audra Wallace listed as a primary for? He was playing the same game, only using tax-payer money to do it.
Control the funding through your primary job. Create the businesses to spend the funding. Make lots of money up until the point you become unsustainable and then close down one LLC and move on to the next.
The key to this setup, as well as any business no matter how 'shady' the setup, is performance.
I'll still stand by my statement regarding the reason for the finances being pulled.
Edit:
Here's the thread that I was reminded of: http://www.metrojacksonville.com/forum/index.php/topic,19358.msg342467.html#msg342467
That is how holding corporations are ran yes... Non-Profits are not traditionally run that way. The model looks to have been based off of this:
(http://i1368.photobucket.com/albums/ag167/AuditoreEnterprise/5350f747-265c-4d48-a0c5-f5706da37a2f_zpsaa9cb4ed.jpg)
Now that model is the typical holding company structure.
(http://www.sec.gov/Archives/edgar/data/1366312/000143774912003142/diagram.jpg)
Now granted the second is much more in depth, but for the sake of making a point that is what the companies I listed were intended for. Now the roadblock comes in the form of taxation. How can you maximize investors money and minimize the taxes you pay out. Simple you abandon that structure create separate entities and simply make the donations to your own non-profit from a separate LLC, then at the end of the year claim your donation to your own company as a tax write-off. Big difference in this and Aundra Wallace was I didn't see the same intent to create organization as there was here.
Now to clarify what I said so that it can't be misunderstood is I hope there was nothing shady going on... Not that there was something sketchy happening. There has been a lot of people in history do a lot of time over money mismanagement. I would hope they clear up the issue that Khan accused KYN of because from the list of companies it does look like they were all connected in some way that's all :) other than that I love one spark :)
The red censor continues to defend his agenda and someone that clearly fits into his idea of that vision. Backing a grafter and robber of peoples hopes, sad.
Little late to the party but the problem with any of these numbers ignores how the Rivas crew works. Yes, they paid money to this or that organization for some service or product but there's no details (as far as I can tell here) to show WHO the money was paid to. Having been a little too up close to how the Rivas group works, I can tell you that the graft was not in outright stealing money but that fees were being paid to groups close to Rivas. That's how the money flows. Have a close look at "experts" tied to Kyn or the people with One Spark and Cowork and you'd be hard pressed to find an "expert" among them. The money was flowing to friends and associates and not at all to businesses or people who could provide the best services at the best price. The entire festival was run in the same way ER runs other groups he's attached to...give the veneer of offering a product/service but keep the money between friends who are generally grossly underqualified in the position they're holding and turn out a product that is less interested in being successful than it is in paying the principles involved. A festival that has no gate revenues is a perfect target. You can fall back on feel good claims because you threw a party that was largely free and who doesn't love a free party? One Spark is staffed by former college kids who were party throwers. One Spark was that. There were no qualifiers that were to be used to determine success going forward except 'boy everyone had fun'...most of all the people making money and winning deals that really had no purpose winning those deals. Kyn? offer the startups some support with designers and developers etc...who are the designers and developers? Experts? no...People who don't have to win the work...just people who have "ok" skills but who know Rivas and his ilk. The entire One Spark and Kyn episodes are successful only if you consider them to be the grafting model of Silicon Valley success. You get together a few people who can pitch a product with no real ability to produce what they claim, and the claims are always grand, and based on the funding the grafters will pay themselves handsomely while making half assed efforts to actually create a viable, self funding entity. People have been played and it's very sad.