President's Logbook
By Jim Fetig
Fundraising is the bedrock that supports every nonprofit mission. For PATC, it’s the second largest source of revenue after cabin rentals. Membership dues are third. Imagine how expensive cabin rental rates or dues would be without fundraising.
One of the reasons I originally ran for president was to establish fundraising and embed it as a robust aspect of PATC’s culture. Much easier said than done. After several fits and starts dating back to initiatives during Joe Lombardo’s presidency, we are consistently achieving our goals and growing our donor base. Thank you to the more than 1,200 of you who donated in the past year!
These results are due in large part to the efforts of Evan Hoffmann, our staff director. He is not only a professional nonprofit manager, he’s also a skilled fundraiser. Evan led us to Abbie Fine, who we hired on contract as a part time fundraiser.Together, they have strengthened PATC’s fundraising foundation and positioned us on a clear upward trajectory.
Our initiatives have included the ability to make monthly donations via the website using a debit or credit card. Recurring donations are more affordable for many, including myself. They often produce donation amounts larger than it would be possible or practical to make in a single gift.
Planned giving is now possible through our new initiative called the Overlook Circle .We are surprised several times a year to learn that the club is receiving a donation from someone’s estate. Sometimes the money is unrestricted and can be used to support general operations. Other times, it is restricted to specific purposes such as trails, lands, cabins, or the quasi-endowment.
Overlook Circle participation allows club members or other donors to share their intention to include PATC in their estate plans. It does not create a permanent obligation. Circumstances change. But by documenting their plans, donors allow PATC to recognize their foresight and commitment to sustaining our mission. Most nonprofit leaders appreciate unrestricted donations most. They allow flexibility in their use and can be deployed for the greatest good of the club. As the leader most responsible for the future, and in the context of our soon-to-begin second century of service, for me, the one exception to the bias toward unrestricted donations is the quasi-endowment.
A quasi endowment is a fund established for a specific purpose. The principal is protected while earnings can be spent as specified in its charter. The PATC quasi-endowment was established in 2011 to provide financial support for the club in perpetuity. It provides a predictable level of funding for capital improvements, operating expenses, and sufficient cash to meet financial obligations.
The quasi-endowment charter allows five percent of the fund’s value to be spent on capital programs annually and two percent for operating expenses. The fund grew by 16 percent last year. Learn more about it here.
Having an endowment in any form is rare in the nonprofit world. In that sense, the PATC of today is the beneficiary of far-sighted leadership. In practical terms, the quasi endowment provides money that we are expected to use to supplement operational budgets, cover major expenses, and buy cabins and lands.
Planned giving to the quasi-endowment through the Overlook Circle has many benefits. Chief among them is that the donation will grow and work for PATC as long as the club exists. Moreover, the quasi-endowment offers incredible flexibility to purchase lands or cabins or fund initiatives that may add value to our mission.
For example, the club does not insure all of its cabins. It is beneficial to insure the most expensive ones, but the club self-insures the smaller primitive cabins. If one of them were to be destroyed, the replacement cost could be covered by the quasi-endowment.
The quasi-endowment is managed by a committee composed of the president, treasurer, and three club members who are accomplished financial professionals. Brown Advisory manages the account and also offers market insight. The chair is Jay Jupiter.
The PATC quasi-endowment’s current value is approximately $6.2 million. Last year, it was capable of providing $120,000 that the club could use for current operations. As a back of the envelope calculation, if the fund were to double in value, it could provide $240,000. That is a solid hedge against financial emergencies and future cabin rental and dues increases.
As we look toward PATC’s second century, we need to think about both what the club requires today and what may be needed tomorrow. Unrestricted gifts give us flexibility to handle the work in front of us — training volunteers, maintaining trails and cabins, and responding when storms or unexpected expenses arise.
The quasi-endowment also contributes to current operations. However, continuing to grow the fund strengthens the club’s long-term position. Both forms of support matter. Together, they help ensure PATC remains steady, adaptable, and prepared for whatever the next hundred years may bring.
In my judgement, donating to the endowment leaves a lasting legacy and is a solid investment in PATC’s long-term future. As a geezer waiting for my turn to push up daisies, the quasi-endowment is included in my estate planning and hope you will consider doing so as well.