Single Chair Finance Committee: October 10, 2005









October 19, 2005


An executive session of the Single Chair Finance Committee of the Mad River Glen Cooperative was convened at 7:30 AM on October 19, 2005 via teleconference.


Present at the meeting were Permanent Committee Members Leigh Michl, Geordie Hall, Al Russell, Charlie Tipper, Jed Kalkstein, and Jamey Wimble.Eric Friedman, Sharon Crawford, and Christine Graham participated in the call as well.


call to order:

Mr. Hall called the meeting to order at 7:30 AM.


Interim Report of Christine Graham:

Christine Graham provided an interim report on her market study on the viability of obtaining donations to fund the rebuild of the Co-op’s Single Chair.Her findings were based on 13 interviews, about half of the expected total.


  • In general, Ms. Graham reported that interviewees were passionate and well informed about the Single project.She reported the majority of interviewees indicated that they would be willing to donate to the project.Some interviewees did not like the fundraising idea or were in favor of shareholder bonds versus donations.
  • Tax deductibility of the donations was essential.
  • Most donors plan to give up front, rather than over multiple years.Donor appetite was not influenced by donations to other causes, such as hurricane relief.
  • Ms. Graham estimates that the Co-op could raise $530K to $650K from donations.
  • Ms. Graham did not find evidence that national foundations would donate to the Single project.
  • Ms. Graham recommended that individual, large donations should be sought before other avenues were pursued (ie, chair sales, auctions, benefit parties, etc.).She thought the January 26th Co-op 10th Anniversary could be a good kick off for the campaign, but that the Co-op should only auction a few selected items.



Backup Financing:

Mr. Wimble reviewed the commitment letter he had received for a long term bank loan to cover any shortfall in fundraising.The Committee reviewed the commitment letter and recommended that Mr. Wimble seek several changes and clarifications.The Committee recommended that the board sign the commitment, as amended, to obtain a 20 year, fully amortizing loan in an amount up to $900,000 loan.The interest rate would be fixed at 6.5% and float thereafter based on the Federal Home Loan Bank of Boston 7 Year Classic Advance Rate, plus 1.75%; adjusted every 7 years.There was no commitment fee, no prepayment penalty, and the lender would have a first security interest in all assets of the Co-op.


Non-Profit Matters:

In light of Ms. Graham’s findings that tax deductibility was essential to fundraising, the Committee recognized that a non-profit partner was needed.The Committee discussed two potential partners – Stark Mountain Foundation and Preservation Trust of Vermont.Messrs. Tipper, Wimble and Russell agreed to work to develop a “memorandum of understanding” with PTV that would outline the requirement and terms of their involvement.Mr. Tipper noted that PTV had no fundraising capability, but would provide the Co-op with know-how and technical expertise in the process.


Chair Disposition Process:

The Committee appointed Leigh Michl and Eric Friedman to develop a plan for raising capital by selling the old Single chairs.


Other Fundraising Resources:

Mr. Friedman noted that share sales were strong and asked the Committee for permission to further increase the share sale selling effort.The Committee had no objection to this request, provided that there were not visible, public competing campaigns, as share sales were not likely to interfere with or limit donations to the Single.



There being no further business, the Committee adjourned at 11:30am.


Respectfully submitted, Leigh Michl

<![if !vml]><![endif]>

A true record.




Leigh Michl