On November 29 at 10AM the LNC had a budget meeting. The budget went up on the screen, but was barely legible. The screen display sometimes made it hard to tell who was talking. Nonetheless:
Present are Nekhaila, Darr, Watkins, Redpath, McMahon.
Ford was absent.
The other members of the budget committee are absent.
Redpath: There is a proposed budget. It is out of balance. He urges that the ExComm should not discuss it, because the LNC should discuss it. The ExCom discussed it.
The budget goes up on screen. The numbers are at the edge of being too small to read.
They estimate $774K of donations. They plan $376K of convention income (out of which convention expenses must be covered) and $43K from an estate. The expected convention fundraising is $10K. The total is $1195K of income and $1435K in expenses.
There is $308K in fundraising and political activity, $573K in salary and related expenses, $82K in administrative and related expenses and $204K in professional services. The budget deficit for next year is $238K. The cash deficit this year, Redpath says, is $43K.
Redpath is asked what he thinks of the budget. He says the LNC needs to discuss. There is enough money from the building sale to cover the loss. Redpath and Nekhaila report that Executive Officer Hannah Kennedy is unable to travel and will be present electronically at the LNC meeting next week.
McMahon asks thoughtful pointed questions. The question is asked where we can cut $240K. Nekhaila says we are still losing money month after month. He reports that we raised $120,000 in large donations. He appears to say that we need to increase income not make further cuts. Redpath says income other than convention will be similar to this year, but 2026 is an election year and income might improve. Watkins asks how much we actually brought in this year. In the first ten months we brought in $630K, and currently are running $150K per two months. Nekhaila says that the Parity Project will start operating; he notes that in 2022, 2023, 2024 and early in 2025 we did more or less no direct mail fundraising.
If we plan for deficit spending in 2026, which we need to do, we will still be losing money. Watkins says that if you cut many expenses, we will lose income as well. We need to have revenue enhancement. McMahon: We do not have LP News in printed form. We do not have much papermail fundraising. Nekhaila says papermail mailers brought in a fair amount of money.
Nekhaila says we have increased from 25,000 people to 250,000 for email contacts. He views our relationship with Iron Light as critical.
We apparently ended the membership renewal letters, the 7-letter sequence sent before and after the expiration date.
Vote to send budget to the full LNC: Nekhaila, Darr, Redpath, McMahon Yes. Watkins abstains.
Motion to adjourn passes without objection.
====The fact that the LNC still has not legally (both criminally & civilly) gone after the former Chair & her cohorts for the theft & misuse of donor funds is another breach of trust. The LNC used the excuse of not having the funds to pursue a legal avenue to make the donors right – but that excuse is moot given the sale of the building.==
Yes! And it will generate revenue.
And they need to repudiate that unholy deal with Kennedy and fess up (alleged) to what happened in Colorado. They won’t because (and I don’t know this as fact so no secrets given – I was kept out if that loop while they went after me hurt doing my job – including Nekhaila I remind you) McArdle is not only one implicated. That’s my theory. They need Kennedy on Colorado ballot and I ruined it. And I’m glad I did.
Everyone remember that if Nekhaila runs for anything on LNC again. He covered for Angela’s vendetta against me.
Unfortunately, Nick is correct. The budget should be in balance. Every month the LNC still is short from operations (per cash flow) taking money from the building sale. This is not how healthy organizations work. A healthy one would have a surplus from operations not needing to sell assets to pay the bills.
At the current / projected rate – the “David F. Nolan Building Slush Fund” will be depleted in 3 years. Perhaps less if the convention ends up being a bust.
Building donors should have been notified prior to the sale. They should have been allowed to express where they wanted their previously restricted donation to go to – ballot access, political activity, affiliate training, paying the bills, some other project (including the purchase of a future HQ), etc.
The LP will not grow back its depleted donor base unless donors can trust the LP again with their money.
The selling of the building – was one breach of that trust – because the donors that made it possible where not properly notified. The building was the number one fundraiser in the history of the party. The donors that gave to this project should have been allowed to have their voices heard.
The fact that the LNC still has not legally (both criminally & civilly) gone after the former Chair & her cohorts for the theft & misuse of donor funds is another breach of trust. The LNC used the excuse of not having the funds to pursue a legal avenue to make the donors right – but that excuse is moot given the sale of the building.
These are the two biggest issues that need to be addressed in order to regain members & donors.
YES!
Out of a $1.2MM budget, only $310K goes to political operations, which means that the proposed budget is 75% overhead.
Signs of a failing organization lacking leadership.
YES!