Re: Ship Finance
K. Wickward (firstname.lastname@example.org)
Mon, 11 Aug 1997 15:36:12 -0700 (PDT)
I've inserted a few comments:
On Fri, 8 Aug 1997, Roger Crossland wrote:
> I am preparing a presentation for our Region's upcoming SeaBadge and would welcome comments (I'll be back at this e-mail address on Aug 18) on the following notes:
> *Sea Explorer Ships typically function on a higher budget than Boy Scout Troops, but their membership numbers are typically smaller. In this council the typical Ship averages $4-6K in expenses annually
> *Expenses are relentless and continuing. Maintenance, storage, hull insurance are yearly and significant. Boy Scut Troops in hard times can become relatively dormant and survive on a shoestring. Sea Explorer Ships do not have that luxury. They must continue to pay certain expenses.
> *Debts related to a vessel attach to the vessel and give rise to a lien on the vessel. This is both a potential strength and weakness. You may not own the vessel.
> Financing should not be seen as a negative and unproductive expenditure of valuable time. It is an educational part of the program "There is no such thing as a gree lunch" is a lesson that should be learned early in life. Salesmanship and the handling of other people's money are skills that have more universal application than seamanship. In this council, during its heyday virtually all financial support came through factory sponsors. There was no fundraising by most Ships. When the factories headed South, the non-factory Ships -- who were used to fundraising -- were the only survivors.
> Most common sources of funds
> *Fundraisers - $4-6k is a very successful fundraiser by most standards, but it requires good membership, significant parental support, and nerves of steel. It must be periodic.
Absolutely the Truth!!!
> *Donations - Outside of your council's identity, a nonprofit tax number
and 501 � 3 status of your own greatly enhances your ability to get grants
and donations from corporations, foundations, and other institutions.
I don't believe this is "legal" in scouting. No unit is officially
allowed to have its own 501c3 status that would make it compete with the
Boy Scouts for that sort of funding. We have an "associated" 501c3
organization that contributes to us, but it is very tricky ground and
really irritates the council. >
> *Boat brokering - I.e. accepting boats and selling them after two years. (IRS requirement to lock in value of donation.) There is the possibility of leasing but with many accompanying legal liability pitfalls. Virtually all donated boats require an up-front investment to make them either usable or saleable. Storage headaches.
Again, this is an area for which there is a high possibility of stepping
on the Boy Scouts' toes. Check with your council.
> *Cruise books and programs - Sale of advertising for Bridge of Honor, Sea Explorers Ball, etc. Critical mass must be reached to be viable. Not available to small Ships, must work with a group of Ships.
> *The Old Boy (and Girl) network - If you have kept contact with alumni/ae "contribute to Ship X in lieu of flowers." Newly formed Ships should take defunct Ships' numbers and capitalize on the continued identity.
> *Community funds and endowments - Best opportunities to cultivate this type of largesse are through the Old Boy (and Girl) network
> *Chartering (bareboat and with crew) - Requires legally sophisticated and active support network. Significant liability and licensing considerations. Raises question of conflict with Sea Explorers for use of vessel during finite sailing season.
We actually find little conflict for one major reason: our program focus
is on commercial boating and career training. We survive on our charters,
the crew earns cruising points for them, and it works very, very well. >
> All financial activities have significant secondary benefits, e.g. recruiting, publicity, and networking. They increase unit visibility to the public.
> Economics, the dismal science, is one of the two greatest challenges for current Sea Explorer leaders. Recruiting is the other.
> Roger Crossland
> Fairfield County (CT) Council
> Sea Exploring Squadron