NASD ROI on Blue Eagle Foundation

On and off again I've wondered what return the NASD has received on the investment it has made in the Blue Eagle Foundation. Most recently the Saucon Valley School District decided to spend over $21,000 to a consultant to create one of their own and this decision prompted me to take another look at our own program. The earlier moments that made me wonder were during last year's budget discussions (when classroom learning level cuts were considered along with a tax hike), the proposed formation of an Alumni Association (which would have been a second fundraising organization - see below), and this August's admin request and board approval of $25,000 to create a fundraising video (read the post here). In each instance I wondered if we were getting any return on the cost of supporting the current program, and if not, why continue supporting it and starting new efforts?

The bottom line: In three years FY 2003-04, 2004-05, and 2005-06 the Foundation has raised $99,096 in revenue and had $50,333 in expenses. $24,200 out of $50,333 was directly contributed to the NASD and student scholarships (24.4%) and $48,763 was placed in reserve. The Foundation appears to be fiscally healthy. During that same time the NASD contributed $60,000 in salary for the Foundation Executive Director ($20,000 per year for three years) and an unquantified amount in business needs, office space and possibly benefits. For that NASD received $21,200 directly and $3000 went to student scholarships ($24,200 total) for a net loss of $36,000 in cash.

Like Saucon Valley, the idea was to create a 501(c)(3) that would raise funds and allow contributors a tax write-off, and then the Foundation would donate that money to the school to support certain services and scholarships. The NASD Board of Directors authorized an independent Education Foundation (visit the web site here) in 2002 for the purpose: "To develop, promote and finance programs which supplement and enhance the quality of education and provide the community with extended educational opportunities within the Nazareth Area School District."

To date it appears the Wall of Fame consumes most of the Foundation's effort and generates most of its publicity. Unfortunately, it doesn't seem to support the purpose of the Foundation, which is most likely why it was slated to be moved from the Foundation to the proposed Alumni Association.

When I received a mailing from the Blue Eagle Foundation about a new Alumni Association (Nov/Dec 2006), I contacted Foundation Executive Director, Bruce Applegate to learn more. From a phone conversation I learned that (read the post associated with this call here):

The Executive Director position of the Foundation is handled through the district and it is compensated by the district. The District provides office space and essential business needs. Prior to the formation of the Foundation the District had managed several funds, but when the Foundation became a legal 501(c)(3) not for profit corporation, it transferred money from NASD to the Education Foundation. KNBT maintains the funds, many of which are specified for certain activities/grants/scholarships and those not specified are general funds.

Further, the Alumni Association would have been a second organization formed to raise funds for the NASD. It was noted that, "The Foundation currently manages four annual scholarships. Teacher grants, which were intended to be provided to help off-set costs of providing continuing education, have not gone as planned, primarily because the teachers have not applied for them".

The Foundation web site (apparently not having been updated since 2004) indicates it has offered two, $1000 scholarships (visit the page here ), though the FY 2005-2006 Tax Form indicates more have been made since.

Following email requests, the school did confirm it pays a salary of $20,000, to the Executive Director, but did not address benefits, business needs, or office space. I did not receive a response from the Executive Director (who did submit a letter of resignation effective the end of the 2007-08 school year - read the post here), but did receive one from a member of the Board of Trustees of the Foundation that in essence stated if I wanted information I had to attend a meeting of the Foundation and could speak during the public comment period like anyone else.

I instead opted to review tax filings and the Foundation web site from which the figures above (the bottom line) were derived.

Also of note, the organization's first filing included an initial fund balance of $78,186, which I take to be the amount transferred from NASD to the Foundation. This has since grown to $129,354.

With the current Executive Director stepping down at the end of this school year, it will be interesting to see if the NASD continues to fund at current levels, is asked to increase its funding, or if the Foundation has a plan to self-fund this position.