Friday, October 24, 2014

The WAC Fiddles While ASO's Endowment Burns ...

John Ruff's open letter to the WAC on this subject:

"Dear WAC -

Your total investment balance (money in the bank), including all division endowments and other investments, was around one-half Billion dollars as of 5-31-13. The ASO endowment was over $86,000,000 as of 5-31-09. These investments should have appreciated over the past year. 


Assuming the ASO annual deficit is in fact $2M, a 2.3% return on the ASO endowment covers it. If you are already skimming the endowment earnings, the question is why hold 43 years of deficit reimbursement (assuming you need all the admin expense and both marketing and fundraising are operating at peak performance) and downsize the ASO? 

Either you do not care about the excellence of the ASO or you are waiting for its destruction to steal the endowment. Good luck with that. 

Forget the new "unique" model nonsense, save your souls."


And the WAC (pounding fist on the table, in fact) wonders why we can't just keep our mouths shut ...


2 comments:

  1. I wonder if they consider the concept of "soul"? Surely someone does.

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  2. Have now reviewed full W...C financials for 2012 and 2013. The ASO endowment has lost value. The cover would last only 36 years. Maybe this justifies keeping the savings account in the bank and starving the children???

    ReplyDelete