Thursday that it is re-structuring and shrinking its organization in
the face of revenue challenges in the coming fiscal year.
ASC announced last week that its annual fund drive raised 37% fewer
dollars than the previous year. The organization's endowment, like
many nonprofit endowments, will provide fewer earnings in the year
ahead after having been impacted negatively by the securities
markets. ASC also receives public funding from the state of North
Carolina, Mecklenburg County, the City of Charlotte and CMS, support
from which is uncertain for the coming year.
Sharply lower revenues will mean fewer dollars available for
organizations and activities receiving funding from ASC. The
organization will have to shrink its operations as well.
"ASC is a steward of public and private community resources, and
exists to serve the community. If resources entrusted to us by the
community decline, then ASC must re-size its organization in order to
maximize dollars being invested back into the community," said
President and CEO Lee Keesler.
To cut operating costs, ASC will implement a two-week furlough of its
staff, will reduce its contribution to its employees' 401(k) plan, and
will require employees to bear a larger share of the cost of its
healthcare benefits plan. ASC will also undergo a workforce reduction
to shrink by eight positions --- roughly 31% --- and outsource or
suspend some activities. Workforce reduction impacts have already
been announced internally.
Granting processes for organizations and activities in FY 2010 are in
motion and will conclude in May and June with approval by ASC's board
before being distributed beginning in July. Dollars available for
investment across the community will be substantially reduced from the
current year in direct proportion to the overall loss in revenue.
Most granting processes are competitive, so some organizations will be
less affected than others.
