Spin Class 101

The Feasibility Study Presentation has been pitched. The results are in, but what were we studying? There seems to be some confusion as to the purpose of the Feasibility Study. Was the purpose to determine the amount of money we could successfully raise? Or was it a feasibility study on whether or not a capital campaign could raise $30 million?

I found some links which may shed some light on the matter.  

March 15, 2012 Mt. Lebanon School District considering funding study 

Pursuant Ketchum first must determine if the district can create a "compelling case" for people to give. The district is discussing donations to reduce the amount it must borrow to complete the $109 million project.
The board would need to hire at least one person to help coordinate the efforts and the money, leaving some directors hesitant when the district already is facing a budget shortfall even with a potential half-mill tax increase.
Administrative costs for a fund-raising campaign would be about 7 percent of what was raised, Oshry said.

March 22, 2012 Feasibility study on Mt. Lebanon fundraiser approved 

Two consultants will spend the next few weeks interviewing some of the district's biggest potential donors and likely volunteer fundraisers. They will use the interviews to determine whether the district can make a compelling case for people to donate; whether there are enough potential donors and volunteers; and whether the timing is right to conduct such a campaign.
The consultants will then present the board with their recommendations in the form of a "red light," "yellow light" or "green light," officials said last week.
"Even if we got a red light ... there's still a tremendous amount of information for us that could be very useful," said board president Josephine Posti.

Paving the way to establish an endowment:

Though the campaign was pitched as a way to reduce the amount of borrowing for the high school -- and thus limit any future tax increases for debt payments -- board members amended the motion to remove language specifying that the study be limited to the high school project.

Here is the introduction of an endowment: 

April 25, 2012 Mt. Lebanon School District Announces Grant Awards for Capital Campaign Feasibility Study 

The District is undertaking the study to assess the viability of a capital campaign to reduce the amount of the second bond required for the $109.7 million high school project currently under construction and to establish an endowment to sustain and grow academic and fine arts programs in the District.

April 26, 2012 Pledges for feasibility study 

The school board voted last month to hire fundraising consultants Pursuant Ketchum to conduct the professional analysis that will determine whether they have enough support to raise $30 million for the high school renovation project.
The study costs $41,000 plus travel expenses.
"We view the study as a necessary investment in preparing for a successful capital campaign to finance a portion for the renovation of Mt. Lebanon High School," said John Federico, president of the Mt. Lebanon Foundation for Education in a statement.

April 26, 2012 Two $10,000 Grants to Help Fund Feasibility Study Posti writes on Center Court:

This $20,000 will cover approximately half of the cost of the $41,000 feasibility study that the Board engaged in last month in order to assess readiness for a capital campaign.

 May 15, 2012 Press Release Mt. Lebanon Community Endowment awards $10,000 grant to Mt. Lebanon School District

The School District feasibility study will assess the viability of a capital campaign, and appropriate strategies for conducting it. Contributions to the campaign would be used to offset existing costs of the Mt. Lebanon Senior High School renovation, as well as build a permanent endowment to support curriculum and other educational needs of the district.
“The Mt. Lebanon School District’s expressed its desire to conduct a successful capital campaign in order to reduce the tax burden associated with the high school renovation and benefit all residents of Mt. Lebanon, especially our most vulnerable citizens” said Joseph King, President of MLCE’s Board of Directors.

Here is the switcheroo: 

July 12, 2012 District awaits word on campaign for Mt. Lebanon High School renovations 

Ms. Bowman said this feasibility study wasn't about identifying donors but about soliciting advice and feedback.
The interviews are based on the idea that the district would try a $15 million capital campaign, though other sums have been considered. Those interviewed -- "a cross section of the community" -- are told funds raised could go toward a program endowment or bricks-and-mortar development at the high school, Ms. Bowman said.

School directors feel that alumni and residents could be ideal donors:

Capital campaigns of this size usually occur at universities or civic organizations, but school directors have said that Mt. Lebanon's alumni network and residents could be ideal future donors.

Oshry guarantees:

He also told the board the study comes with a few guarantees -- whether it signals possibility for a campaign or not, the study could identify and gauge community interest, he said.

At Monday's meeting, PK announces the number to be $6 million, not $30 million.  I guess that is a green light.

In March, we're told about 7% for a $30 million campaign. 

On September 17, we're told 14% for a $6 million campaign.

So which is it?  Was it a feasibility study on whether or not a capital campaign could raise $30 million? Or was the purpose to determine the amount of money we could successfully raise? 

This concludes Spin Class 101.