KCC's Financial Resources

On August 4th, The Strategic Planning Committee hosted the final of four focus groups--this one on the financial resources that support KCC.  The committee put out some valuable financial documents during the meeting, and those are reproduced below.  The first table shows our current operating costs based on the 2012 budget.   It includes all the costs associated with the Portland and Goldendale facilities and the revenues generated by retreats, bookstore, and rent, but not capital costs associated with completing construction on the long-retreat cloister.

 KCC's Operating Costs

How do we pay the bills? Each year the KCC bookstore generates about $1,700, and retreats contribute another $46,000 toward our overhead. KCC receives $6,000 in rent from the urban center residents, and we earn about $150 in interest on the money we have in the bank.  Based on our current revenue and expenses, it would take 100 people giving $78.00 per month to cover the rest of KCC’s core operating costs.

	Portland	Goldendale
Lama’s Salary & Benefits	$41,810
Caretakers’ Stipend & Benefits		$29,825
Facilities & Vehicles	$17,080	$26,050
Utilities, maintenance, insurance, taxes
Office & Administration Expense	$5,020	$1,230
Volunteer Insurance	$1,700	$3,570
Connecting with the Lineage	$6,250
Lama travel to India, hosting visiting teachers, support to Bokar Monastery
Legal & Bookkeeping Fees	$6,000
Committee Budgets	$3,900	4,500
Total	$81,760	$65,175
GRAND TOTAL	$146,935

 Hypothetical Future Operating Costs

The second table is a hypothetical using very rough (and modest) numbers to illustrate the increased costs of owning a new urban center.  The figures aren't an attempt to project actual costs, but placeholders.  We didn't know whether we'd be hiring more teaching staff or operational staff (maintenance, office, volunteer coordinator, executive director), but it seemed likely that we'd have some new staff.  The figures on mortgage and new operating costs are likewise just placeholders--it's easy to think of scenarios where the cost is more or less depending on the fundraising we do before acquiring a center and the size of the new center we acquire.  Using these very rough figures, the per-member monthly costs rise to $160 on those same 100 people.  As (or more importantly if) the sangha grew, the per-person costs would drop--$107/month at 150 people, and $80/mo with 200 people. 

	Portland	Goldendale
Lama’s Salary & Benefits	$41,810
Caretakers’ Stipend & Benefits		$29,825
New Staff or Teaching Position Salary, payroll taxes, and benefits Facilities & Vehicles	$45,000 $17,080	$26,050
Utilities, maintenance, insurance, taxes
$500,000 Mortgage on New Center New Center Operating Costs Utilities, maintenance, insurance Office & Administration Expense	$30,400 $24,000 $5,020	$1,230
Volunteer Insurance	$1,700	$3,570
Connecting with the Lineage	$6,250
Lama travel to India, hosting visiting teachers, support to Bokar Monastery
Legal & Bookkeeping Fees	$6,000
Committee Budgets	$3,900	4,500
Total	$181,160	$65,175
GRAND TOTAL	$246,335

Talking About Money

Financial Resources Focus Group

Saturday, August 4th, 10am to 1pm

KCC, 73 NE Monroe

Food will be provided after the meeting for all who wish to stay

A Dharma center requires funds to operate, and a discussion of finances can begin with line-items on a budget.  Yet even before we get to the brass tacks of donations and budgets, there's the larger questions around our values around money and our relationship to giving and spending.  Every church and nonprofit has an implicit culture toward money.  In our small group sessions during this focus group, we'll consider both halves of the equation.

1.  The question of money can raise an emotional response, particularly when it relates to the precious Dharma.  On the one hand, as practitioners we feel that it should be made free to everyone, but on the other, it takes money and energy to support the activities of KCC.  The way we negotiate this tension creates the culture we develop around money and the Dharma.  Consider for a moment what our culture of giving says about this relationship.  Does KCC have the balance right?  What should our culture be? 

• Our organization reflects its values by making sure retreats earn a small profit but also offering scholarships to make all retreats accessible, and raising the rest through pledges.  Organizations like public radio have a membership model where people pledge certain amounts; Christian churches ask members to tithe.  Do you have any opinion about how KCC ought to ask for money?
• How do we think about giving in relationship to our practice?  When is it okay to say no to giving more money?

2.  Now let's think about brass tacks: how to support the activities at KCC.  Over the next five years, we'll begin to see costs stabilize as we operate long retreats at SCOL; still, costs could be as high as $100 per person per month--more money than we currently raise.  That means we could ask members to give more, find another way to raise revenues, or cut back on programs. 

• How would you feel about paying $100 a month?
• If you can't afford that much or think it is too much, is there something you'd be willing to get rid of (a new urban center, certain programs, teachers, etc.)?
• Are there other programs or events KCC might sponsor to raise more funds?

These are weighty subjects, and we don't expect the sangha to balance a budget in this meeting--we're just inquiring to get a sense of your current needs and priorities.  This will be an ongoing discussion as the strategic plan comes into focus.  If you're able to attend the meeting, spend a few minutes thinking about these questions.  If you're not able to attend but would like to forward your thoughts, email them to kcc.portland(at)yahoo.com and we will add them to the discussion.

Finding Agreement on Goals: Financial Resources

From March 22 to 26, members of KCC's leadership (Board, Program Council, and others) met to discuss the strategic plan. Our intention was to hone in on our key goals in four categories: Facilities, Programs, Organization and Staffing, and Financial Resources.  We weren't looking for agreement on the goals themselves--we'll need Sangha input for that--but rather agreement on what the big issues are.  Today we'll discuss some of the issues that came up around financial resources.

Current Situation

KCC is nearing the end of a longer-than-expected fundraising effort to find land and build facilities to house long retreats.  Remarkably, the center raised millions of dollars without going a penny in debt.  However, taking on a separate facility brings with it new costs, both in maintenance and increased program costs.  Meanwhile, the urban center has seen revenues drop in recent years.  This is in part due to a decline in regular pledging sangha (who were formerly called "dues-paying" sangha).  A few years ago, KCC had 90-95 members regularly supporting the center, but today it has fallen to 68--even though attendance hasn't changed at all.

KCC is currently offering a far deeper range of programs than it has in two decades.  This is made possible by a team of teachers, three of whom offer their considerable time to KCC without compensation.  This is not sustainable in the long-term (and possibly not in the medium-term).  Things will only get tighter as we begin one-year retreat.  Finally, part of the strategic discussions include possible plans to acquire a new urban center, which would have significant cost implications.  If we did move to a new urban center, it would likely cost more over and above what we spent on it.

Possible Goals
Below are a list of goals the Strategic Planning Committee and Leadership group identified.  While the groups have spent substantial time thinking and discussing them, they are only a starting place for further discussions.  The SPC hopes members of  the sangha think about KCC's situation, its needs, and its resources and offers feedback and suggestions.  Have a look:

• Create a business plan.  Discussion.  The moving parts that affect finances are many and complex.  It's difficult to conceptualize our needs and resources, and a business plan would clarify a number of issues.
• Develop a culture of giving.  Discussion.  This topic will actually be addressed in a separate post focused entirely on culture changes. The idea is to better integrate the idea of giving (among other things) within our practice of the dharma. 
• Support the unpaid teachers.  Discussion.  This was the least fleshed out in terms of strategy, but there was a broad sense that it's unsustainable to expect teachers to be able to devote the equivalent of a part- to full-time job to KCC without having some means of compensation. 
• Begin an urban center campaign, but only after the cloister at SCOL is fully funded.  Discussion.  This is less a goal than a matter of tactics, and one that the group was split on.  Does it make sense to have two campaigns going on simultaneously?  Or put in the reverse--would two campaigns focused on different goals really compete with one another?  

As you might imagine, there were extensive discussions behind each of these proposals--and one doesn't have to look too hard to foresee extensive discussions in the future.  We hope you'll join us.  Please feel invited to comment on this thread and consider coming to the Sangha meeting this Sunday following meditation (roughly 11:15 to noon).