Endowment Board Sets Financial Targets

The U.S. Endowment for Forestry and Communities’ Board of Directors completed its review of current and expected economic conditions and budgets for 2009.  At its fall meeting, held November 3-4 in Minneapolis, the Board charted a new course for programmatic funding for the next three years.  “Just as we were implementing our course for programmatic action to address our mission, we – as the rest of the world — were swamped by the greatest economic upheaval and uncertainty since the Great Depression,” said Endowment President Carlton Owen.  “Yet, our staff and Board recognize that we must do all that we can to address our mission of sustainable forestry and forest-reliant communities even in the face of uncertainty.”  In May of 2008, the Endowment Board had anticipated a 2009 programmatic budget of $7.5 million on the way to $10 million in 2010.  A greater than 25% percent decline in the Endowment corpus (down >36% from peak and -26.5% from May 1, 2007 base) will not support those earlier plans.   The Board and staff spent many hours considering a range of options that address both mission and fiduciary responsibilities in arriving at a plan that calls for approximately $5 million in annual programmatic investment for each of the next three years.  On December 16th, the Board completed its budget planning with a review and adoption of an Operating Budget to deal with administration and support.  Even in the eye of increasing costs for audit, health insurance and financial support services, the 2009 budget will be flat – the same as 2008 – at $762,500.  This budget includes a freeze on staff salaries.