Civil Rights Museum Anniversary & Financial Numbers
Posted by ryan on January 28, 2008
I have done a couple posts on the Civil Rights Museum during the past couple of months and the News & Record has published an article in today’s paper. According to the N&R the museum is still in need of “$10 million to finish it.”
The museum will hold its “2008 Anniversary Gala” on January 31 at the Sheraton Four Seasons. Tickets are $100 per person with a reception at 6 pm and dinner at 7 pm. I will be attending the event and look forward to finally talking with Skip Alston and some of the museums supporters.
According to the museums 2006 Form 990 the “2006 Anniversary Gala” brought in $158,000 and came with $61,097 in expenses. That means they made $96,903… not quite enough to pay the $100,000 salary of Amelia Parker, the museums executive director.
I should note that I am not an accountant but by looking at line 18 (Excess or deficit for the year) of the 990 it shows that after expenses the museum raised $814,472 in 2006. If that average continues to remain the same (and they still need $10 million) then it could easily take 10 years to complete the project.
Non profits that are highly rated spend at least $.90 of each dollar on the cause itself. I need to double check some figures but I will report later today the dollar amount that the museum puts towards the cause.
Greensboro Politics 
Don Moore said
I would tread carefully in the 90% fund raising aspect of this, until the Museum is completed there will be higher expenses related to fund raising and public awareness/promotion.
This is potentially one of Greensboro’s jewels, if it can get out of the starting gate.
ryan said
Don, I am not sure I understand your comment. The $.90 figure is a national standard… its not something I am making up.
I agree that the museum is a good thing for Greensboro but one can only wonder when it will actually get out of the starting gate.
Have you donated?
Ryan
Beau Jackson said
Let me break things down a bit more for you. Non profits that are highly rated spend at least $.90 of each dollar on the cause itself. I need to double check some figures but I will report later today the dollar amount that the museum puts towards the cause.
I have a rather confident feeling based on what I hear and read that if there were to be a comprehensive audit of this organization the amount spent on “the cause” would be a “whole” lot less than .90 cents. For me and the majority of people that “do not” support this organization, notice I did not say the cause (a double negative is appropriate in this situation), accountability is a major issue. The prevailing wind is that this is a “cash cow” for a select few, and the people of Guilford Co. are getting “ripped-off” big time now and don’t wish to throw good money after bad to an organization that has no accountability.
ryan said
I have not confirmed this with the museum’s CPA but their numbers for 2006 have them at around $.74 of each dollar going to the cause.
Again, I am not pointing these items out to drown the museum. It is a worthy cause but it is simply time for completion date to be on the horizon.
I am thinking more about what can be done in the future rather than what has been done, or supposedly done in the past.
Ryan
Sidney C. Gray said
If you speak with Mr. Alston and other supporters ask them about my proposal for making this museum inclusive for all of Greensboro and not an annual taxpayer entitlement.
Proposed Civil Rights Museum:
I would encourage the donation of the Woolworth’s Building to the City of Greensboro as part of our Historical Museum System. The historical importance of what happened on February 1, 1960 warrants recognition that is inclusive for all of Greensboro. The creation of an entirely new museum veers away from the historical event that took place at the lunch counter and siphons off much needed money to bring this building up to current code. While I support applying for grant money with the National Trust Community Investment Corporation and other private sources, I have to respect the voters’ position in the last bond referendum and not allocate additional city revenues for this project. I do not believe that the museum as proposed will be self supporting and in the future the citizens of Greensboro will be asked on an annual basis for money to sustain this project.
Beau Jackson said
I have not confirmed this with the museum’s CPA but their numbers for 2006 have them at around $.74 of each dollar going to the cause.
I would love to see the 2006 audit to see how much personal expences were, per diem, etc., even though the .74 cents already puts them substancially below the standard of .90 cents. I’ll bet dollars to donuts that some of those within the organization have personally benefited……………..
ryan said
Beau,
As previously mentioned, new nonprofits generally have a lower percentage rate but I am not so sure the museum is considered new anymore.
For previous comments, try not to make accusations unless there is proof to back them up as that will be more helpful and less conspiracy theory ish.
Ryan
Beau Jackson said
For previous comments, try not to make accusations unless there is proof to back them up as that will be more helpful and less conspiracy theory ish.
This is what the people who have doubts want……accountability! I’d like to see and audit and some T & E reports. The people still have the project homestead in thier mouths, reason for caution. I suspect we can wittle that .74 cents down even further.
Lex said
Out of curiosity, what’s the source for the 90 figure? I’ve covered a few nonprofits, and depending on the type, 70 would actually be considered pretty good. The national Better Business Bureau’s standards for charitable nonprofits recommends that a minimum of 65 percent of revenue be spent on program expenses, but that’s a far cry from 90 cents on the dollar
ryan said
Lex,
According to the BB (link you provided) 65% is the absolute minimum. I will have to track down a link for the higher dollar mark as I don’t have it handy. The $.90 is a high standard but it is in fact the standard that nonprofits work toward. I just spoke with the Greensboro United Way and they were at $.87 for 2006.
Lex said
Yeah, it’s the minimum, but quite a lot of perfectly reputable nonprofits are fairly close to that minimum. I would expect the United Way’s figure to be higher because they’re mainly a pass-through funding agency for their members.
ryan said
Lex,
Feel free to donate. Most non profits that I have associated with (and worked for) typically try not to aim to meet the minimum.
Ryan
Bill Knight said
Bear in mind that the CRM is a work-in-progess and most funding should be dedicated to capital expenditures. During its construction phase there should not be any operating expenses since it is not operational.
The CRM Board of Trustees (Directors) should insist on impeccable accountability so there is never a question surronunding the nature of its activities. A copy of each year’s annual audit report (back to the inception date) should be a matter of public record at the Public Library, including written comments from auditors apart from the audit reports spelling out steps needed to enhance financial integrity. If there is a business model, it too should be on public display. Projections of operations after completion, including disposition of excess revenues over expenses, should be explained in detail for those wanting to know how the museum will succeed. Compensation of officers or Board members, and expense allowances, should be disclosed.
During last fall’s City Counci campaign, the notion was advanced by candidate Yvonne Johnson, among others, that upon completion the museum will attract national and international visitors, leading to increased air traffic into and out of PTI, more hotel accomodations downtown, and more downtown commerce in general. She cited her experience while visiting Memphis, where she said she could feel the excitement caused by its civil rights efforts. If this is true then bringing the musuem to completion should be fairly straightforward. Perhaps the marketing plan might go after a target audience that would be willing to contribute to museum construction, with free admission on the first visit to Greensboro. Or maybe bright young idea minded local college students be used in the fund raising effort. Greensboro taxpayers did not vote against the museum in the last bond referendum: they voted not to spend taxpayer dollars on it.
I’m not sure what the problem is in raising the needed money to complete construction and open the doors to the public.
Lex said
Ryan, I’m not defending the civil-rights museum; I’m saying, based on having covered them off and on for the past 20 years, that different percentages are appropriate for different kinds of nonprofits. (I’m also trying to be polite in the face of your snideness.) The 65% level is a benchmark. I would expect pass-through nonprofits to have a significantly higher level, new nonprofits to spend a greater percentage of their budget on fund-raising (an administrative expense rather than a program-related one) than more established nonprofits, and so on and so on. That’s just how the nonprofit world works. There’s no one level that’s right for all nonprofits and not every nonprofit can reasonably aspire to spend 90 cents of every revenue dollar on programs.