A Short Financial Update from Karmê Chöling

Short Narrative Description

2020 has been a year when nimbleness, adaptability and compassion have been pivotal in our decision making. The issues Karmê Chöling faced this year, and the financial situation we find ourselves in today, is manageable.

Far from being on the edge of a cliff, the generosity of our donors and the cautious financial planning of many generations of Karmê Chöling leadership have provided solid ground on which we can adapt and change.

With the continued support of our donor community, as well as our residency program, Karmê Chöling has managed to reduce its losses to a manageable scale. With everyone’s continued support, we can maintain KCL’s sure footing and continue to meet the rapidly changing needs and circumstances of our community and the world.

Balance Sheet

Karmê Chöling has a strong balance sheet. It has more than $400,000 in cash that can be accessed anytime, without restrictions. On the liability side, it has $800,000 in long-term debt.

That debt includes:

• $76,847 in Paycheck Protection Program funds – A forgivable loan, most of which should be forgiven;
• a $149,900 Small Business Administration 30-year loan, with an interest rate of 2.75 percent. We currently hold this as an insurance policy;
• A $393,600 mortgage, for which we are currently paying interest only. When we resume principal payments in February, we will be paying this down at a rate of $50,000 per year and will be paid off in seven years;
• and a roof loan, which has a balance of $185,000.

Cash Flow

Cash Flow is still negative. In 2021, we project a monthly loss of our cash flow of $2,500/month.

While not desirable, we have sufficient cash reserves to cover the negative cash flow. If residency and online programs continue to be successful, and our donations stay steady or increase, we have sufficient reserves (without accessing our set-aside or restricted funds) for about four years.

Donations

Monthly donations have been holding steady at $10,850 per month since June 2019. We hope to increase our monthy and one-time donations to reduce our monthly shortfalls.

Help KCL Adapt and Change

The additional funds would offer KCL the resources needed to further adapt and plan – updating our facilities for wheelchair access, creating more sanitary food service areas, and, perhaps most importantly, improving our hybrid program offerings.

As we plan Summer 2021, we intend to offer in-person programs to smaller groups that can also be enjoyed online by a wider audience. It’s a challenge to make programs equally enjoyable for in-person and online audiences. Upgrading our technology will be key to allowing our skilled programs team to explore, learn and innovate.

Financial Snapshot as of November 2020 – Projected Cash Flow*

Cash On Hand 01/01/2020	$412,673**
Projected 2020 Revenue (from original 2020 budget)	Programs –    $722,321 Misc.               $10,400 Fundraising – $386,796 TOTAL –     $1,119,517
Projected 2020 Expenses (from original 2020 budget)	$1,148,104

 

Adjusted Projected 2020 Revenue (10/25/2020)	Programs –       $43,834 Ret. Cabins       $21,550 Residency         $88,374 Misc.-                $91,854* Fundraising –   $405,922 TOTAL –           $651,534
Adjusted Projected 2020 Expenses	$777,211
Projected Revenue Shortfall in 2020 (Reflects substantial cuts to expenses) On Cash Basis	($125,677)                        ($42,759)
Projected Year end cash on hand 2020	$391,363
Projected 2021 Year end cash on hand	$349,228
*Includes $76,000 from PPP ** Includes $308,000 repurposed Capital Campaign Funds