|PAY FORWARD REIMBURSEMENTS
We are pleased to report that just over $13,000 worth of membership
fees paid in advance have been credited back to Naturist Legacy members
in 2012. This represents the first step in our plan to credit these fees
back in full to most members within five years.
Even though membership fees that were previously paid forward are now
beginning to flow back to members, we are still in need of new pay-forward
money with which to continue our park's development. Several members topped
up their pay forward accounts when they paid their 2012 invoices. Others
paid forward for the very first time. Thank you! This is the sort of willing
support needed to fund the continuing development of Naturist Legacy Park!
Last fall, a few members expressed their willingness to forgo reimbursements
in 2012 to help further our development goals. Our contractual obligation
to reimburse pre-paid membership fees would not allow us to accept this
generous offer on an individual basis, but there's nothing to prevent these
members from writing us a cheque equal to what was actually reimbursed
to them. Doing so would have the same material effect as postponing their
reimbursements would have had. Such kind gestures would, of course, be
IN A PERFECT WORLD: A CASH FLOW PRIMER FROM NLI'S TREASURER
Some of you have asked me why we don't "do this" or "rent that" or
"pay someone" to get certain tasks completed. I also often get "can we
have this" or "when will we build that" type of requests from members.
I have to say that in a perfect world, the answers would be yes, and very
soon! I want these things, too. I long for a clubhouse that would serve
as a place to hold events, to name just one amenity. It would help make
Naturist Legacy Park complete.
I started to think about why such suggestions and comments were being
made and have developed a theory. Naturist Legacy's board often posts how
much money it has raised to date. Looking at that number, one would believe
that we have buckets of cash to spend on these suggestions, wants and needs.
If only that were true.
What can easily be overlooked when looking at the big numbers shown
in "Our Fundraising To Date" reports in these updates and on our Web site
is the fact that the money flows out as well as in. Man oh man, does it
flow! The reality is that most of what we've raised to date has long been
spent or is designated to be spent in the next month or so. Let me give
you a few numbers...
To date, from day one, and in general round figures, we have raised
almost $174,000 in membership fees paid forward and a bit more than $23,000
in donations (both members and corporate), for a total of $197,455. This
is still well short of the $250,000 we need to complete the park, leaving
us in need of $52,545 to get the job done. If that money had already been
raised, there would in fact be room in the budget to rent this, build that
or hire others to do the hard stuff. In fact, if every member kicked in
a grand this year, we would get the entire job done — clubhouse and all!
Now let's look at the other side of the coin — the side that all treasurers
like me hate to see active. Just to buy our land (with fees) cost us $86,000
right off the top, which was no cheap haircut. All this just to set foot
on the land and start to clear bush! But it gets even better. Electrical
cost us $30,700 before the first watt even came off the grid. Water cost
us $7,200 just to turn on a tap. Sewage tanks came in at $7,700 just to
store, well, let's say "removables." Installing the phone line cost us
another $500 (not including bruises). Improving roads and clearing trees
came with a cost of about $1000. Buildings are at $10,000 and counting.
And this is not to mention just getting Naturist Legacy Inc. itself up
and running at a cost of about $2000 when all was said and done. But wait,
there's more. Have a look at this year's capital expenses: a pool with
fence and deck all ready to splash in at about $30,000; finishing the electrical
at another $3000; the volleyball court at another $2500; outdoor showers
for $1000, with another $2,500 or so for all the small bits that have to
All totaled, we will have spent around $183,100 of the funds we have
raised if all goes to budget without hidden or unexpected costs, which
sadly are always the case with a project this large. One just cannot foresee
every little thing, and that's why the "small bits" allotment must be $2,500!
By the end of this year we will have about what we budgeted to have,
which means we are spending to plan. This is a very good thing. Never to
be forgotten in all of this is that everything you see at the park has
been paid for up front. There are no loans or mortgages to service thanks
to your pay forwards and donations. Beyond the construction, and other
than paying everyday bills, we do not owe the outside world one thin dime.
I hope you can now see that we are getting down to the bottom of our
"great cash pile." We find ourselves with about $0 left over in real "capital"
funds to do any further development. Not much happens for $0!
Now before you freak out, I'm not discussing operational moneys that
we do have and will spend. They're not part of this at all, so take a deep
breath. Now one more. That's better!
I have to remind you that the big upside of this short term pain is
that in the next five or so years, after the majority of pay forward members
are reimbursed, we'll have ample yearly operating funds to pay the bills
— even if we never get another member past our current number — and
gradually pay back "the founders" who have sacrificially provided us with
so very much of our funding. When you look at things in those terms, we
are in very good shape! We'll be fully sustainable in a very short time
by any standard business measure. You can't ask for more than that, especially
given what we lost in the recent past.
I hope you can now see why we are hand digging stumps and trenches,
why we are raking roads by hand rather than by machine, why we're using
paint brushes and not spray guns, and why we're generally going manual
with brute strength grunt work everywhere we can because, quite frankly,
we have to! We have no other real choice. There is no money to allow us
to pay for someone to come in and do the hard work for us, even though
that work would get done so much faster and easier. I can tell you that
our backs would love it if we could!
And so now you know why we so often need to say "not now" and "not yet"
to all the great ideas, suggestions, wants and needs of our members. As
nudists without even a pocket to keep our money in, we can only spend what
money we actually hold in our hands!
Like I said...in a perfect world....
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