A very minor nit, but a potentially important one: as a not-for-profit entity,
we can "accrue a surplus" every month; we cannot "make a profit".
Most of us think in terms of profit & loss, not surplus & deficit, but we
should still strive to use the correct terminology so the CRA doesn't have an
excuse to stick their nose in.
Basically just avoid using the word "profit". Yeah, it's goofy, but that's tax
law for you.
-Adam
On March 26, 2014 10:19:28 AM CDT, Benjamin Bergman <[email protected]> wrote:
>Hello SkullSpacers,
>
>Attached to this email is the information which I presented at our
>last meeting regarding the previous year's financial status. When we
>moved into our new space in November of 2012, we knew that we would
>see a net loss over the next year or so due to the large jump in rent.
>In the short term, the plan was to smooth this out a bit with some
>members donating regularly above and beyond their regular dues. The
>long term plan was to increase our membership and events until we
>eventually were covering our costs again.
>
>As you'll see from our income statement, we had a net loss for the
>year. It was probably a bit higher than expected, likely due to a
>sudden, unexpected Hydro bill as well as fewer regular pledged
>donations than were expected.
>
>You will also see attached is a cash flow projection for the next
>year. This projection assumes we do the exact same thing as last year
>(ie. same amount of fundraisers with the same costs and profits, same
>rent and utilities, same maintenance expenses, etc.), just smoothed
>out throughout the year. The only exceptions to this are our dues and
>insurance.
>
>In the projection, our insurance cost is spread out over 12 months
>starting in June, meaning it will continue to eat into next year's
>budget as well. Last year we paid our insurance all at once at about
>$2000 in June, but this year we will need to spread it out in order to
>avoid going into the red mid June.
>
>The dues in the projection are based on today's member count (roughly
>65 members) as opposed to the average of dues from last year. There
>has been a great trend recently of new members seemingly every week,
>so hopefully that continues throughout the year.
>
>As you will notice, the projection shows our bank balance going below
>$0 before the next AGM. As such, we need to take some actions to
>improve our cash flow. Some of our current suggestions are:
>
>* More socials - perhaps two or more this year instead of just one
>like last year
>
>* Gift card fund raiser - you all buy groceries and gas anyway, right?
>3% could go to SkullSpace!
>
>* Recurring donation pledges - if you are not currently giving a
>regular donation or would like to increase your monthly donation
>amount, please talk to a board member
>
>* Raising member dues - this is a last resort option and we will only
>do this after thorough discussion with the membership
>
>PLEASE consider giving a regular donation and updating your PAD. If
>everyone gave an extra $5 or $10 per month, most of our financial
>struggle would be over. (Thank you to those members who are already
>regularly doing this.)
>
>At SkullSpace 1.0, our financial mandate was to maintain three months
>of expenses in our bank account to cover any unforeseen expenses. As a
> short term goal, I would like to see us regularly having a net profit
>each month instead of a loss, but by the end of the year I hope we can
>replenish a portion of our emergency fund so we can have a strong
>financial base to enable us all to engage in awesome projects and
>events through the space long into the future.
>
>
>------------------------------------------------------------------------
>
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--
Sent from my Android device with K-9 Mail. Please excuse my brevity.
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