The current concern about the potential Las Vegas Regional cancellation raises anew the sticky issues related to how event costs are covered.
I’ve had a slow-growing sense that the system is out-of-balance but my impression is based on only snippets of information from event organizers and taking a look at the published FIRST financials. I’m uninformed and admit as much. Nevertheless, my impression that things are out-of-whack has been amplified in the last day learning about the LVR situation.
As a teacher/school administrator at a non-profit independent school I know well that:
a. education endeavors are people-intense and thus expensive to run and that tuition/user fees do not by themselves balance the books
b. large endowments are vital to ensure non-profit institutions can weather mishaps/disasters/changes in the economy
c. large endowments are vital to growth-related projects that have long “payback” periods
d. in education “paybacks” are in the form of better trained students and rarely monetary and thus growth projects depend on donors/sponsors who understand that a new facility/project doesn’t won’t typically pay for itself through new income
FIRST is essentially an education-based non-profit endeavor that needs to think like one. And given that part of its mission is to “change culture” it naturally is growth oriented. It takes money to grow, and it takes money to ensure the institution’s long-term viability.
But, as noted by someone in the LVR post, I, too, have only fuzzy answers for parents/sponsors/students who wonder why events cost so much. Earlier years, I used to ease their concern by conversationally speculating with them about how much it must cost to rent a big venue such as we use here in Utah (a professional sports/concert arena). Then I found out that none of the venue costs are covered by entry fees. Now, my answer to such questions is an honest, “I don’t know.” An answer that is not satisfying to the parent/student/sponsor nor is it comfortable for me to deliver.
The Las Vegas situation has undermined my confidence in the underlying economic fundamentals of the system. I remain a strong believer in the power of FRC experience; my high confidence in the fundamental learning value of FRC has not diminished at all. However, I’d like to be more informed, for my own peace of mind, as every year our team, like many others, does a lot to promote the FIRST organization.
I want to believe in the institution more fully. I will be a better promotor of the mission if I have more understanding.
What are the costs of running a “typical” regional/ district event?
How much is borne by FIRST? How much does it cost for FIRST to provide field and paid personnel?
What are FIRST’s operating principles for disbursement of general funds.
What are the endowment goals?
We don’t need to know everything about FIRST financials, and certainly FIRST would not be a better organization led by committee-of-Chief-Delphi. However, a more clear understanding would help us all more confidently promote the organization behind the mission.