Saturday, April 14, 2012

A Fresh Start Is Needed

Anonymous has left a new comment on your post "Blogging Business":
"...it is an independent business that seeks financing from the Town..
 Perhaps it is a not-for-profit company but it is not a registered charity.

"Tim, Tim, Tim ... in a word: Wrong!

The Cultural Centre is an incorporated non-profit with the ability to issue charitable donation tax receipts (from their website: "the Centre, a Registered Non-profit Charity").

You're Welcome, Tim.

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The essence  of this argument contains the crux of my reservations about Council's ability to make the  governing body  of Church Street School publicly accountable.

The Board is a hybrid. It is six of one and nothing of the other. 

The original plan was for an arm's length body to manage the facility without political interference and the ability to solicit donations in return for tax receipts.

Seed money was required to begin . It was to be reduced by a fixed amount annually until the  board became self-sufficient.

I was doubtful.  But I had no experience to base my arguments.

A  municipality cannot issue tax receipts for gifts. Donations  are a critical aspect of operating  an arts centre independently of tax support.

A corporation is  required to have articles of incorporation.

I suspect the devil  is  in the details of the articles of incorporation
when it comes to changes in the composition of the board. 

I think  governance  has to be all political  or no political representation. .  

Political  management  would  certainly frustrate the objective of  having a self-sustaining operation, independent of tax support.

Let's say user fees are based on cost of operation, including  rent or amortisation for the facility, cost of maintenance, staffing, paying performers  and program promotions.

If people with friends in the right places can approach  the political body,as we have seen recently, and request  the facility at no cost, that would completely undermine the objective of  financial self-sufficiency.

Unless of course  other users had to pay higher fees to cover the cost of letting the bums have it  free

The demand  by the  commercial concert promotion outfit aka St Kitts Jazz  Festival , under the guise of a not for profit corporation,is a classic example of how politics  interferes with the broad and committed objective of treating people equally.

They got money from a  previous council.  Even this year, after  earnings of at least $150,000 last year,  four Councillors were prepared to provide a free venue  once again for them to rake in the schekels.

An arm's length independent board could theoretically solicit donations and provide  tax receipts to pay for events as well as keep admission rates reasonable for the  greater number to enjoy.

It's a  theory.

The problem with the Church Street School situation is, there is no
requirement to become self-sufficient any  time soon. We increase  funds provided every year instead of reducing them.

We provide a facility in which we have substantial financial investment  for a rent of $1.00 a year.

We pay for all maintenance and utilities.

We see no end to the drain on town resources.

To add insult to injury, the purpose of our investment in the building in the first place,  the  town's museum, was rudely and autocratically excluded from the facility by a bunch of pirates.

It was a Faustian Bargain the town made when we had a rogue council and a facile administration.

This experience with an  arm's length independent body intended to be self-sufficient does give me confidence in the model.

I think we should take the building back, cut off the funding  and start afresh.

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