Questions & answers
- What assumptions did you make in calculating that Innovation Campaign investments would be sustained through the operating budget by 2021?
Our model assumed average annual revenue growth of 4.9 percent. This includes annual growth of Individual Gifts of 6.2 percent attributed primarily to an increase in the revenue from sustaining members, growing from 46 percent in 2015 to 68 percent in 2021. In addition to Individual Gift revenue growth, the model assumed average annual Underwriting Revenue growth of 4.6 percent, and average annual Major Gift revenue increases of 6.6 percent. Additional revenue from new opportunities provided by new programs and digital offering were also included.
For expenses, the model used an average annual growth rate of 2.5 percent. This is based on historic annual increases over the past five years, along with specific line item adjustments as appropriate to accommodate one-time expenses.
- How are you going to sustain theses new initiatives long term?
The combination of increased Individual and Major Giving will help sustain the Innovation Campaign investments over the long term. The projected increase in sustainer revenue, from 46 percent to 68 percent over the next six years, will lead to an additional $1,026,633 million in Individual Gift revenue. Major Gift revenue is expected to grow an average of 6.6 percent annually over six years. The new programs and digital offerings supported by the Innovation Campaign will provide new revenue opportunities, contributing to the sustainability of the initiatives.
- How would NHPR respond in the case of an another economic downturn?
NHPR has a successful history of managing operating expenses to align with revenue. If necessary, we would slow the rollout of the new initiatives to align with expected revenue and pledge payments. Ultimately, management would be expected to present a responsible budget to the Board of Trustees for their approval.
- Why is the Innovation Fund critical to NHPR's long-term sustainability?
Media and technology continue to change at lightening speed. As a result, our need to innovate will not stop after the campaign. The Innovation Fund will provide NHPR the resources needed to adapt to the as-yet-unimagined technological changes
- How is the Innovation Fund managed?
Oversight of NHPR's Endowment and Innovation Funds is the responsibility of the Investment Subcommittee of the NHPR Finance Committee. The subcommittee consists of the Chairman and Treasurer of NHPR, two trustee members, and two non-trustee members. The subcommittee is guided by the Board-approved Investment Policy Statement. All invested funds are subject to the Uniform Prudent Management of Institutional Funds Act (UPMIFA) and are audited annually.