[TheForge] ABANA support

[Andrew Vida]

Jerry Smith wrote:
> Andy,
> 
> I think your right, ABANA needs to look at long term
> and build an endowment fund. I have been a member of
> SERTOMA and Kiwanis and raise funds that will keep
> their organizations alive and able to sustain their
> get togethers and their charities. 
> 
> The NRA has dinners to raise money for the
> organization, if we all chipped in $10.00 at the local
> level to support the national (or International)to get
> into a trust or an endowment fund. ABANA would be a
> lot healthier.

	Just did a fast cashflow calculation... a $250,000 perpetuity growing 
at 3% per year on a 10% discount basis would need a principal of  about 
$3.1MM.

	A perpetuity is a payment one receives yearly from earnings on 
principal.  A growing perpetuity means that the cashflow of $250,000 in 
the first year will grow by 3% every year thereafter.  The discount rate 
is the rate of earnings that the principle makes.  The higher the 
discount rate, the lower your starting principle needs to be because the 
discount rate tells us how much interest the principal is assumed to be 
earning.  10% might be a bit optimistic... perhaps market average would 
be better. :)

	In any event, as you can see the endowment would not be trivial, but I 
see no reason that it could not be accomplished.  Fund raisers could be 
held and perhaps ABANA could devote $1 of yearly dues to principal.  The 
fund could be placed in trust with a bank and it could be locked up for 
some number of years until it reached a certain value.  This would 
prevent raiding.  If ABANA closed its doors, there could be provisions 
made for disposal of the capital... perhaps a return to the members 
based on years as a member... whatever.  It certainly would not happen 
over night, but I think this is ABANA's best chance at financial 
stability.   Conference loses a few $$?  So what.  It is budgeted for 
and hopefully planning will improve such that future events don't lose 
money too often or too much.  How about ABANA putting together a 
handbook for those wanting to plan events?  Take the lessons learned 
from previous conferences and give pointers on what worked well and what 
did not.  All controversy aside, George Dixon did a pretty good job in 
Asheville.  His experiences should have been put to paper for future 
generations, but they weren't.