Brucker
July 25th, 2013, 07:05 PM
Longmont Humane Society is seeking close to $800,000 in donations or it faces foreclosure in late November.
Article from the TimesCall: Click Here (http://www.timescall.com/news/longmont-local-news/ci_23731462/longmont-humane-society-makes-plea-donations-avoid-foreclosure)
Cut and paste for the lazy:
The Longmont Humane Society is asking for $772,227 in donations by Nov. 30 to avoid possible foreclosure later this year.
Overrun construction costs from the facility's expansion that began in 2006 and six years of financial deficits have drained the organization's reserves, leaving the Humane Society unable to make its 2013 and subsequent annual loan payments, said executive director Liz Smokowski.
The nonprofit needs to raise this year's payment within four months or the organization could face foreclosure or be forced to file for bankruptcy as early as December, said Smokowski, who inherited the loan when she was hired at the end of 2011.
The humane society took out a $6 million loan in 2006 to cover a $1 million overrun in construction costs and a $5 million gift that was paid over five years in increments of $1 million.
The nonprofit has launched a fundraising campaign, The Longmont Humane Society: Serving the Community Now and Forever, focused on large gifts to achieve the organization's immediate and long-term goals, which include paying off the remaining $3.1 million on the loan by the fall of 2014.
The organization's financial problems are mostly due to construction costs for the 43,000-square-foot expansion, which were estimated at about $8.2 million but cost $9 million by the time it opened in January 2009, Smokowski said, and annual deficits from 2006 to 2011.
More than a dozen banks, including the current loan-holder Wells Fargo, have refused the organization's request to renegotiate the loan, mostly due to the deficits, Smokowski said.
Staff and program cuts in 2012, Smokowski's first full year as the executive director, led to the organization's first positive financial gain of about $35,000 following a loss of more than $260,000 in 2011.
Last year, Smokowski reduced the staff by 30 percent, closed three of the organization's four thrift stores and moved the clinic, which was located offsite, into the expanded facility to cut costs.
Further cuts are unlikely because they would put the quality of service at risk, Smokowski said.
Board President Shelly McLeod credits Smokowski's experience as executive director for other area organizations, including Imagine!, Safe Shelter of St. Vrain Valley and The Tiny Tim Center, and business background for the organization's first financial gain in six years.
McLeod said the organization is in "crisis mode," and asking for help from the community is one of the nonprofit's only remaining options.
Smokowski is the humane society's fourth executive director in four years and, McLeod said, excessive turnover has been a contributing factor to the organization's financial difficulties.
The staff was informed Wednesday about the organization's financial struggle.
Mallory Hochwender, a client care team supervisor, said she was shocked and discouraged by the news and is putting all of her faith in the campaign that she hopes will save the nonprofit where she volunteered as a child.
"I think when you work at a nonprofit you have to be equipped with eternal optimism," Hochwender said. "For now, I'm staying positive that the community recognizes that the services we provide are above and beyond and pulls us through this."
Smokowski said she is confident that if the humane society can pay off the remaining loan amount, which she describes as "the thorn in our side," the organization will continue to see financial gains and improvements.
Those of you who know me, know I don't ask for hand outs, ever. But I have been a supporter of this and the Boulder Humane Societies for many years now. I have seen first hand the good work they do with troubled animals. Longmont is known nationwide for taking in "unwanted breeds", ie, pits, rotties, etc. And for not giving up on the hard to adopt out animals.
I found my Black and Tan Coonhound, who had been given up twice before, at LHS a few years back. And two of the dogs I had growing up came from BHS. Needless to say, I will be doing what I can. How about you?
Want to help but don't know how? What about raising money by participating in the "Strutt Your Mutt" 5k run/walk and pet expo on Saturday, September 14, 2013. More info at www.longmonthumane.kintera.org/strutyourmutt (http://www.longmonthumane.kintera.org/strutyourmutt)
Article from the TimesCall: Click Here (http://www.timescall.com/news/longmont-local-news/ci_23731462/longmont-humane-society-makes-plea-donations-avoid-foreclosure)
Cut and paste for the lazy:
The Longmont Humane Society is asking for $772,227 in donations by Nov. 30 to avoid possible foreclosure later this year.
Overrun construction costs from the facility's expansion that began in 2006 and six years of financial deficits have drained the organization's reserves, leaving the Humane Society unable to make its 2013 and subsequent annual loan payments, said executive director Liz Smokowski.
The nonprofit needs to raise this year's payment within four months or the organization could face foreclosure or be forced to file for bankruptcy as early as December, said Smokowski, who inherited the loan when she was hired at the end of 2011.
The humane society took out a $6 million loan in 2006 to cover a $1 million overrun in construction costs and a $5 million gift that was paid over five years in increments of $1 million.
The nonprofit has launched a fundraising campaign, The Longmont Humane Society: Serving the Community Now and Forever, focused on large gifts to achieve the organization's immediate and long-term goals, which include paying off the remaining $3.1 million on the loan by the fall of 2014.
The organization's financial problems are mostly due to construction costs for the 43,000-square-foot expansion, which were estimated at about $8.2 million but cost $9 million by the time it opened in January 2009, Smokowski said, and annual deficits from 2006 to 2011.
More than a dozen banks, including the current loan-holder Wells Fargo, have refused the organization's request to renegotiate the loan, mostly due to the deficits, Smokowski said.
Staff and program cuts in 2012, Smokowski's first full year as the executive director, led to the organization's first positive financial gain of about $35,000 following a loss of more than $260,000 in 2011.
Last year, Smokowski reduced the staff by 30 percent, closed three of the organization's four thrift stores and moved the clinic, which was located offsite, into the expanded facility to cut costs.
Further cuts are unlikely because they would put the quality of service at risk, Smokowski said.
Board President Shelly McLeod credits Smokowski's experience as executive director for other area organizations, including Imagine!, Safe Shelter of St. Vrain Valley and The Tiny Tim Center, and business background for the organization's first financial gain in six years.
McLeod said the organization is in "crisis mode," and asking for help from the community is one of the nonprofit's only remaining options.
Smokowski is the humane society's fourth executive director in four years and, McLeod said, excessive turnover has been a contributing factor to the organization's financial difficulties.
The staff was informed Wednesday about the organization's financial struggle.
Mallory Hochwender, a client care team supervisor, said she was shocked and discouraged by the news and is putting all of her faith in the campaign that she hopes will save the nonprofit where she volunteered as a child.
"I think when you work at a nonprofit you have to be equipped with eternal optimism," Hochwender said. "For now, I'm staying positive that the community recognizes that the services we provide are above and beyond and pulls us through this."
Smokowski said she is confident that if the humane society can pay off the remaining loan amount, which she describes as "the thorn in our side," the organization will continue to see financial gains and improvements.
Those of you who know me, know I don't ask for hand outs, ever. But I have been a supporter of this and the Boulder Humane Societies for many years now. I have seen first hand the good work they do with troubled animals. Longmont is known nationwide for taking in "unwanted breeds", ie, pits, rotties, etc. And for not giving up on the hard to adopt out animals.
I found my Black and Tan Coonhound, who had been given up twice before, at LHS a few years back. And two of the dogs I had growing up came from BHS. Needless to say, I will be doing what I can. How about you?
Want to help but don't know how? What about raising money by participating in the "Strutt Your Mutt" 5k run/walk and pet expo on Saturday, September 14, 2013. More info at www.longmonthumane.kintera.org/strutyourmutt (http://www.longmonthumane.kintera.org/strutyourmutt)