20/20 Vision Capital Campaign Narratives
Catamount Arts is launching its $3.5 million 2020 Vision Capital Campaign to
insure the long term financial viability of the organization and to provide
funding to support arts education, accessibility, technology and programming
well into the 21st Century.
For several years, both before and after the opening of the new Community Art
center, Catamount Arts has functioned on a basis where operating revenue has
been either slightly more or slightly less than operating expenses on an annual
basis. In 2010 we launched a highly successful car raffle which has resulted in
increasing returns each year. Our annual Benefit Auction has shown increasing
levels of net income over the last several years. In 2011 we launched
CatamounTIX, our Regional Box Office and on-line ticketing service, which has
generated positive net revenue in fiscal 2012 and pays for our Development
Our current debt load is approximately $900,000, including reserves for initial
debt servicing costs and development expenses. Our plan calls for this debt
to be retired early in 2016. Interest over that time period is budgeted to be
$75,000, for a total balance to be extinguished of $975,000.
Funds received in the 2020 Vision Capital Campaign will be used to retire
debt, build an Endowment, maintain and improve the physical infrastructure of
our facility, and pay for campaign expenses. For every $1 received, 85¢ will
first go toward retiring debt and then toward building the endowment. The
other 15¢ will be used to administer the campaign and pay for needed capital
Successfully funding the 20/20 Vision Capital Campaign will provide at least
$140,000 in positive cash flow each year by (1) eliminating $40,000 in annual
principal and interest expense and (2) generating $100,000 in endowment
interest income (5% annual return).
The endowment will consist of four funds:
Arts Education Fund: $1,000,000 ($50,000 in annual interest income)
Arts Programming Fund: $500,000 ($25,000 in annual interest income)
Arts Accessibility Fund: $400,000 ($20,000 in annual interest income)
Arts Technology Fund: $100,000 ($5,000 in annual interest income)
Investments will be managed by a proven financial institution or foundation
within the VT / NH area. Our investment strategy will be based on an Annual
Distribution Model. In accordance with a defined spending policy, the
investment manager will annually distribute a percentage of the market value
of the fund with a goal of growing the principal balance of the fund over time.
Per historical performance of similarly managed funds, we estimate the average
distribution percentage will be 5%. Thus, once fully funded, the 20/20 Vision
Endowment Fund will contribute approximately $100,000 in annual income.