|
 |
||
|
Watching the Mission Viejo Foundation The unaudited financial statement of the Mission Viejo Community Foundation has been made public. The statement through Dec. 31, 2005, provides the following information. Management fees (code word for salaries or payments to someone else to run the organization) are $46,000.00 from June to December. We do not know if salaries have been charged for the full six months. Outside service expenses are $7,437.34, with printing and copying at $6,872.42. Travel expenses are $806.58 with conference fees at $2,204.89. Total expenses were $69,561.30, and total income (additions) was $260,776.75. The ratio of expenses to income is approximately 26.75 percent of total revenue. If one were to project the above through June 30, 2006, the ratio would be approximately the same or slightly higher using the “City Outlook” total of $360,000 and doubling the management fees at $92,000. Other expenses have not been included. Roughly one of every three dollars is going to overhead and expenses. Any future contributions could be projected at the same ratio. If any slowdown of contributions occurs, the ratio will rise significantly as time passes. The important number in the statement is $317,000 in pledged receivables. This number likely includes the city’s future grant of approximately $200,000, which has not been officially approved by the council. When all non-city donations are subtracted by offsetting expenses and salaries, the net donor to the foundation is the city. If the non-city donations trail off, the city will become a net-loss donor. To explain it differently, if the city had given the money directly to the Murray Center, the funds would be 1 for 1 instead of .70 to 1. James Edward Woodin |
||