Wednesday, March 21, 2012

"Redefining Fundraising"

Now that the board has voted unanimously to work with Pursuant Ketchum, here is a case study from their website.  Pursuant Helps Washington National Cathedral Turn Visitors Into Donors
The multichannel strategy for earthquake response generated 848 gifts, averaging at $118 each, with no direct asks. 50 percent of the donations came from first-time donors.




If every man, woman and child living in Mt. Lebanon (MTL 2010 census - pop. 33,137) donated at the average PK Washington Cathedral rate of $118, they would only raise $3,910,166.

A little bit about the man who made the presentation to the board...Elliott S. Oshry, CFR 



24 comments:

Anonymous said...

Doesn't anyone ever question the statements people make when they make a presentation to the board.

The Almanac quotes Mr. Oshry:
"I see three major things you have working in your favor," he explained. "You have a compelling case, available dollars and available leaders. And I think everyone in any community understands the impact of a school district on their property values."

Compelling case? What makes an entity spending more money than it takes in, handing out raises it can't afford and a declining customer base - compelling. If this were a company on Wall Street investors would be bailing like crazy! What's so compelling?

If we have available dollars, why doesn't the district just tax us for them rather than letting PK take a cut off the top? Oh what perfect logic. Mr. Oshry, you tug on our heartstrings and tell us how "it's for the kids." We know that, but it's worth paying you 7% to remind us. That's really compelling.

If we have competent leaders, why is the district in money trouble? Where were these competent leaders before we got into this financial quagmire? If they were so competent wouldn't they have seen the money problems in advance? Oh wait, Fraasch and Hart did. We just didn't listen.

Wonder if Mr. Oshry missed the article on the family that chose S. Fayette? Seems perhaps there are cheaper desirable alternatives and our property values aren't guaranteed.
It's OK to make statements, it'd be nice to hear them backed up with up with some logic.
Godfrey Hardy

Anonymous said...

From DCist.com

"National Cathedral $18 Million Short for Earthquake Repairs
While a local philanthropist kicked in $7.5 million of his own money to help fund repairs on the Washington Monument in the wake of last August's earthquake, the National Cathedral is still some $18 million short in its own fundraising efforts for needed repairs.
Via the Post, the AP reported yesterday that the cathedral has only brought in $2 million for repairs expected to cost $20 million. The earthquake caused damage to one of the building's pinnacles -- it was removed last year -- and other slender pieces that stand stop the Gothic structure. In October, Mayor Vince Gray requested federal funds for the repairs.
According to Georgetown Patch the repairs could take the better part of a decade to complete."

Don't hold your breathe waiting for the money MTL.

Anon Too

Richard Gideon said...

I have stated, on the Blog and in other venues, that I have no philosophical objection to the District, or for that matter any public entity, asking for financial help from the public for its capital projects (whether the goal of the capital project is worthwhile is another matter). Having said that, I believe there is some doubt as to whether the community at large will be able to pony up the adverted $30,000,000. Using the 2010 Census figures adduced in this thread, the per capita contribution needed to meet the District's goal is $905.33; and that figure is purely abstract because it does not include the costs of the Capital Campaign, which at this time are unknown.

It is obvious that the District is going to have to look outside of the community for help, and I see it going after the following people or entities:
1. Alumni. This will require tracking down a large body of people who no longer live in Mt. Lebanon, or even in Pennsylvania. Finding "lost" alumni, like finding a lost love, is no easy task, and will require both time and money. What may be gained from the alumni is anyone's guess, but my prediction is that it will fall into the category of "chump change."
2. "High Rollers." There has been talk of tapping former Mt. Lebanon HS alumni or municipal residents who have made it "big," financially speaking, and "putting pressure" on them to "give back" to the District. "Giving back" is a poor use of words, as it implies the person in question took something of value that wasn't his or hers. Mark Cuban's name has been adduced; but Mr. Cuban, as I understand it, has not been a big fan of the District's plans. And just how many people have gone on from Mt. Lebanon to become billionaires? Having said this, I think they might have better success here than with the alumni in general.
3. Corporate or Foundation Sponsorship. This is the "Willie Sutton" source of money. The District might have its best luck here, but whether it will be enough to fund their campaign is questionable. Private foundations may wonder why a "rich" (note: Mt. Lebanon is NOT "rich") PUBLIC school district wants private money to build a new high school. After all, this is not a failing inner-city school that people are trying to save and improve. There are literally thousands upon thousands of causes, crying for help; and the picture of a starving dog or cat in a shelter can elicit more money from a foundation (or an individual, for that matter) than a "rich" kid from Virginia Manor playing tennis next to a new high school building. Would local foundations be willing to contribute a sizable hunk of $30,000,000? Will the District go to Bill Gates? Corporations are in the same boat; they are hit-up all the time for money for worthwhile causes. But corporations, usually anyway, want to see some tangible results for their "investment." It is easier to get a company to contribute to a college or university because many of the programs in those institutions produce men and women with the kind of education that a company can use.

Mt. Lebanon residents are stuck with this project, whether we supported it or not, and whilst one cannot object to any plan that will reduce the "legal plunder of the public purse," one is also entitled to a pardonable curiosity as to the feasibility of the District's Capital Fundraising plans.

"Fasten your seat-belts; it's going to be a bumpy ride."

Anonymous said...

Richard,

The per capita figure of $905.33 you refer to happens to be almost $200 per capita more than the annual tax cost per capita of operating the entire Municipality of Mt. Lebanon !

Bill Lewis

Anonymous said...

We're being snookered again. There was evidence on the recording that donations will be directed towards an endowment fund instead of offsetting the need for a second bond. Donations collected may not be used as intended by the donor. Beverly Powell

Anonymous said...

If donations can be neither donor directed nor donor advised, and only an endowment fund is established without "invasion of principal" rights, a $30 million endowment fund might generate only perhaps $1.5 million in annual earnings for grant purposes, which would likely be used for added teachers, programs and athletics and unlikely in lieu of millage increases for PSERS or debt service for an otherwise necessary bond issue.

Veblen Good

Samuel Adams said...

Wow, big surprise that people moving to the area ARE NOT choosing Mt. Lebanon. (Hey, school board, guess what? People outside the Lebo bubble actually read this blog and are becoming aware of your sleazy bullying.)
As for everyone else reading-- things are going to get worse since nobody actually does anything to change it. What this school board has done/is doing borders on criminal. Will someone sound the alarm? We have a community full of attorneys and none of them have the guts or just the plain ability to step in? This is ridiculous.

Anonymous said...

Everyone reading this blog should be aware of the anger simmering in this community because of the actions of a few people who think they know it all or are simply determined to get their way.
I agree with Mr. Adams that legal action is in order. I also think some outside audits of both the municipal and school district budgets are imperative.
Let's stop this speeding train wreck now! Housing values already are in a free fall here.
Elizabeth Ross

Lebo Citizens said...

Beverly, I think of it as bait and switch. Forget that we need $30 million to avoid a second bond. We know we will never raise that kind of money. If we put it into an endowment fund, then we don't have to make those difficult decisions like cutting teachers' jobs or closing schools. We can have the taxpayers pay for a second bond, and use the donations to pay for salaries. We can keep Tim and Jan happy too. It is a win win for us school board directors.
You are absolutely right. We ARE being snookered.
Elaine

Anonymous said...

Elizabeth,

Where is everybody? Why aren't they organizing and doing something? The taxpayers and voters are getting what they deserve.

Elaine,

Taking donations for one purpose and using them for another is beyond a bait and switch, it's fraud.

Wilma Zellers

Anonymous said...

Must be that 21st century education math.

Jo needs $2 million dollars to balance her yearly budget. She needs $30 million more to complete her latest remodeling project.
So how much money does Jo need altogether?
ANSWER:
She doesn't care. She thinks if she spends $42,000+ somebody else will solve her financial problems.
Giffen Good

Anonymous said...

I can't wait for "the ask" on an alleged claim the JoPo & Co have made "a compelling case" for donations !

Veblen Good

Lebo Citizens said...

Giffen, don't forget the $900,000 grievance even though the board is trying to.
Wilma, devoted wife of William Zellers, Mt. Lebanon resident and noted author, I think the board agreed to make the verbiage generic so that it wouldn't look like fraud.
Elaine

John Ewing said...

So the Board didn’t count the votes properly in the last teachers contract negotiations and they let the older teachers spike their pensions at the expense of the younger teachers who get to pay for the HS.

The trouble is the younger teachers out number the older teachers and can vote down any renegotiation of the contract. So the Board told folks they would raise $30-Million for the building project and is now pulling is a BAIT AND SWITCH on the community by using some of the $30-Million for an endowment to pay the embarrassing teachers contract they voted for.

I’m betting 1) the younger Teachers are too smart to fall for a contract renegotiation, and 2) the Donors are too smart to fund an endowment to pay for an overly expensive teachers contract, and 3) the coffees that are being held are to convince the “District Assets,” invited to the coffees, to promote the endowment.

Unfortunately, any credibility the Board had remaining was lost at the announcement of the endowment.

Does anybody want to be bullied into paying for spiked teachers’ pensions, ridiculous healthcare costs, and other benefits that cost $65,000 per year?

Before you answer that question ask yourself why the benefits cost more than the average teachers salary?

John

Anonymous said...

Would it be too gauche to parade a bunch of school age kids outside the school board coffees with signs saying:
"What the kluck! Where's my $18 per month high school?"

Just thought I'd ask first.

Cuban Bustelo

Anonymous said...

Cut and paste this link to read the very difficult position the MLSD is in:

http://www.alleghenyinstitute.org/component/content/article/916-school-district-seeks-answers-.html

The article was released today.

John

Anonymous said...

The Allegheny Institute report says

Based on the audited financial report available on the [ML] District’s website, from 2002 through 2011 enrollment fell from 5,616 to 5,268 (-6%). Over the same period full-time equivalent employee headcount rose 3.5 percent. The categories of supervisory and student services personnel were both up 16 percent while instruction and support/administration are up 2.5 percent and 1.6 percent, respectively.

Astonishingly, the audited data show fringe benefits have jumped from $6.4 million to $13.9 million (114%) during the 2002-11 period, pushing the ratio of fringe benefits to salaries in the District from 20 percent to 34 percent in 2011. If the $1 million grievance settlement is awarded the fringe benefits to salaries ratio will almost certainly rise even further. Total outlays climbed 42 percent over the period, boosting per pupil expenditures by 52 percent. Note that from 2006 to 2011, SAT scores were flat, although still well above state and national averages.

Will the District raise property taxes? Been there and done that. Notwithstanding the County assessment freeze that was touted as a way to curb property tax increases, audited financial data show that after reducing the property tax rate from 20.76 mills to 18.12 in the 2002-03 year, Mt. Lebanon school tax millage rate was raised every fiscal year since except for 2007-08 and 2011-12. For 2011-12 the tax rate is set at 26.63 mills, almost 50 percent higher than the 2002-03 rate. By comparison, the average Allegheny County school district rate for this year is just over 23 mills according to the Pennsylvania Department of Education.

Since there was no reassessment during the period, the change in the adjusted net property tax levy—from $38.8 million in 2002 to $55.8 million in 2011—is largely accounted for by the millage change.

Anonymous said...

Cuban Bustelo,

You might have an idea there. You may want to contact a Lynn Lebowitz. In her "Hello Friends" e-mail of 27 Aug 2010, she seemed to be a rally-the-troops, bring-a-sign-and-children advocate for a town hall meeting at the Muni building the next day.

She also stated "public meetings, with public officials, held in a closed door venue will not be tolerated in this community"; however, those coffee houses (and all Municipal buildings) have fire code occupancy limits, so they better not close the doors if the crowds get too large or there may be a real demonstration. The overflow crowds can stand outside and listen.

Veblen Good

Anonymous said...

How funny, Veblen, that I thought the same exact thing. When a town hall meeting was organized to inform residents about these financial chickens that are now coming home to roost, the S.O.S.’ers and their children crowded the Municipal Building in protest even though the content was made available by podcast to anyone. So, now the school board directors will meet with the public in a small coffee shop with much more limited seating to talk. LOL!

-Wilma Zellers

Anonymous said...

I just wasn't sure if it was kosher or not.
Those Reallebo ladies from California proclaimed they were here to build a community and since one of the demonstartors got elected to the commission, the other featured in MTL magaziine and a Lebowitz got elected to the school board I wanted to be sure that was how one should "disagreed without being disagreeable."

I mean really - "what the Kluck?" I don't want to be accused of having a hateful heart.

Cuban Bustelo

Anonymous said...

Suddenly the venue is free. Hooray!! Is reason suddenly coming upon them? NAH. I am surprised that they do not spend money on renting a temporary Taj Mahal for the meaningless meetings...this should have been considered many years ago.
Constance Spicuous Consumption

Lebo Citizens said...

Hmm. Check this out. I got it for free on the Pursuant Group blog.
Practical Tips for Multichannel Fundraising

Lebo Citizens said...

This didn't cost $41,000 plus travel expenses!
Free Nonprofit Online Fundraising Assessment Tool
Elaine

Lebo Citizens said...

Forgot to say that the previous free fundraising assessment tool was found on the Pursuant Ketchum website.
Elaine