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Old 12-04-2019, 10:27 AM   #24
airedale
is one Smokin' Farker
 
Join Date: 10-19-15
Location: City, MN
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Quote:
Originally Posted by midwest_kc View Post
They did quite a bit of renovations, as I recall, too, though, so who knows how much they have in it.
Well, sunk cost is really irrelevant to their decision anyway. Apparently they will clear $750K and presumably cut their facilities cost by keeping only the one floor or moving to cheaper digs. All of that buys time for the axe-swinging that no one wants to do.

According to their 2017 tax return "occupancy" ran $330K, 22% of revenue, so if they could cut half of that it would help cut the run rate. Fringes and payroll taxes ($80K) were 41% of salaries. That is a very big number and another candidate for the axe. I would look for at least $20K there. Office expenses ($100K) were 7% of gross revenue. Probably a few sins buried in there. Investments $350K at the end of 2017; that money is probably gone, used to fund the losses.

(Incidentally, anyone can go to guidestar.org and register, then get access to tax returns from any nonprofit in the US (though not churches). Usually there is a year lag, so 2017 is all that is available for kcbs. I have been registered for several years and nothing bad/no spam has happened.)
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