President's Messages

Dear Fellow Members:

An article by Dick Chobot in Friday’s OLLI E-News alerted you to the fact that we are about to launch a fact-finding mission to identify the composition of our membership, its preferences and concerns by way of two questionnaires. The first one, the anonymous one, is ready for your attention by way of the following link:

http://vovici.com/wsb.dll/s/efb3g27dc7

Click on this link and answer each item. When you get to the end of the survey, click the submit button. It should not take very long.

I want to underscore Dick Chobot’s statement that everyone’s participation is important to the success of the questionnaires. The more responses we receive, the better the conclusions we can draw. While you may not understand why we are asking some of the questions you will see on the form, please understand that those who design these things and those who interpret data have specific purposes in mind. This questionnaire and the one to follow in a few weeks have been very carefully crafted to help us in ways we already have identified and in ways that may yet be unknown.

You and I probably know what some of the results will be. We think we know who our members are, what they are like, what they like. Haven’t we been serving those needs with some success for many years? But times change as do our members; new members are joining and regrettably we have lost some treasured friends. We are not in identity crisis mode; we are in identity evaluation mode. And once we conclude what we need to know, we will be able to offer better services and fine-tune our approach to your needs.

So I urge you to not do what I do with almost every survey asked of me, but instead, for the benefit of all of us at OLLI, click on the link to this anonymous survey now and take fifteen or so minutes to consider carefully each question.

When the results are in, we will share them with you.

With much appreciation,

Debbie Halverson
President, Osher Lifelong Learning Institute at George Mason University

The Board of Directors of OLLI in coordination with the nominating committee is pleased to announce the slate of candidates for the 2007 election to the board. These names were presented at today’s board meeting:

Members will be asked to vote for six of these candidates. Current members of the board who will be leaving are Janice Dewire, Eileen Duggan, Kathryn Russell, Pat Cosslett, and Tom Hady. A schedule of events leading up to the election will be released shortly at which time you will learn when the voting will begin and procedures connected with it.

The board is grateful to those who have volunteered to be part of this process.

Debbie Halverson
President, Osher Lifelong Learning Institute at George Mason University

We are once again pleased to acknowledge the generosity of our friends, those who contributed in 2006 to the Friends of OLLI fund. Donations amounting to $23,315 from members and others amounted to a 28% increase over 2005. On behalf of our members, let me express my gratitude to all the contributors.

A significant fact is that 245 members donated to the Friends this year, representing more than 32% of our membership. This compares to 186 in 2005, when 27% made donations.

We are grateful to all of our donors, regardless of the amount they donated. We should point out that 34 patrons donated $250 or more and an additional 89 donated from $100 to $250. Eight OLLI members donated between $500 and $1,000.

A list of the 2006 contributors follows. Some names do not appear as these donors have requested anonymity. An honor roll of this list is being prepared and will be prominently displayed in the social room at Tallwood.

Friends of OLLI funds are used primarily to support our scholarship program with GMU (in appreciation of the free use of Tallwood) or capital expenditures such as computers or audiovisual equipment. If we didn’t have these donations, funds for these expenditures would have to come from dues. We should note that since the 2006 donations equaled more than $31 per OLLI member, were it not for this generous support, our new dues fee would be over $380.

We invite all members to show their support of OLLI by contributing to the 2007 campaign. You can do this by adding a contribution to your class registration or by responding to our annual solicitation.

With warm regards and much gratitude,

Debbie Halverson
President, Osher Lifelong Learning Institute at George Mason University

Dear Fellow Members:

This message is a follow-up to my last to you concerning the increase in dues for the year 2007, beginning with the spring term.

I have received several letters expressing dissatisfaction with my explanation of the 25% dues increase and other issues the writers felt should have been covered in that letter. Let me first tell you that the message, as you could imagine, was difficult to write since it carried unpleasant news at holiday time. The purpose of that letter, and I should have explained that, was simply to give you a heads-up about the dues increase before the grapevine got working. It was not meant in any way to be the final and complete explanation for the dues increase. We will be addressing as many of your questions as arise over coming weeks. One letter from me could not possibly have clarified your thinking about why our budget has arisen to $345,000 and the need to raise the dues by so much.

Your letters received at this writing include the following issues:

1. The impact of having an executive director

2. What about loss of members due to the dues increase? This is a toughie. Let me point to some history on this that should help: we have only raised dues modestly in recent years while the cost of running the institute has increased with the complexity of our diverse and outstanding program, staff increases, operating costs, etc. Certainly anyone who has followed the program through our catalog offerings each term as they have become better and better could expect that along with those improvements would come better classroom equipment, servicing a larger membership to the point that we need to upgrade our registration system, and rent larger space for our larger class enrollments. During this time of limited dues increases, we’ve been running very tight budgets. We can’t continue to do that if we expect to function efficiently in the future.

Our hope is that those members who choose to leave because the increased cost will create a financial hardship will consider quietly asking for scholarship help; and for the others, that they will weigh the value of our program against what it costs to them. (One of the letters in response to my first message states, "As a dues-paying member I want to know if we are getting our money’s worth." I believe that is a question each member will have to answer for themselves.) I ask myself, "Is the quality of the course offerings in this term’s catalog worth the additional $17.50 (one fourth of $70.00) I would be asked to pay for it?" I happen to feel it is and that the spring offerings will as well. It would be imprudent to avoid raising dues and running a deficit for fear that we would lose a huge number of our dues-paying members who, we know, appreciate what we offer in return, and who understand that you pay for what you get as truly as you get what you pay for. You will shortly be receiving a comparative look at other LLIs in the country and what their programs are costing their members.

3. How has the Osher grant driven our decision to have an ED? While the receipt of the Osher grants did precede the official decision to have an ED, the fact is that well before its receipt, many years earlier, the need to have an ED had been identified. OLLI (LRI) boards in the past were well aware that the time would come that we would need professional paid management to effectively run the institute. However, there is good news for the future. As you know, we have received a $1 million endowment from Osher and starting in 2009, endowment earnings will pay for $40,000 or more of the annual cost to support an ED. By 2009 we will be receiving the interest on the endowment and that will be a big help as we look to our future. Also, being part of the OLLI network carries with it more benefits than can be outlined here.

4. Are we being diligent in watching costs? While some of you may think we should have cut the major cost, the ED salary, both the finance committee and board members have reviewed the other costs. To our knowledge there are no excesses in that budget, but we also recognize that since it is only a budget, what is actually spent won’t be known until year’s end. When the board meets each month, the treasurer’s report includes the financials with a key indicator dashboard (the ED’s creation) that traces the budget along with the "actuals." This board is in touch then on a regular basis with how the money is spent and considers that function primary in its governance duties. As to responsible financial management, I should note that in 2005 and 2006, OLLI had deficit budgets, but year-end results showed surpluses in each of those years.

5. Our concern about the future of OLLI. This is probably the most important aspect of the budget, and the corresponding issue of how our future will be financed. As your elected governing board, it is our responsibility to weigh all the issues and figure out what is best for the institute as we peer into the future. Our charge is to be sure that our current members and those who will join us will have a place to attend classes, an outstanding program to enjoy, and a place to meet friends and colleagues. An unpopular dues increase that we all must equally bear is the price we invest in that.

I am sure these will not be the last words you will hear from others or me on these issues, from other board members, the ED, or your fellow members. Only know that we do have your best interests at heart and hope that you will find this explanation somewhat helpful, as it is intended to be.

Warmly,

Debbie Halverson
President, Osher Lifelong Learning Institute at George Mason University

Dear Members:

It falls to me as president of OLLI to deliver the news about the dues increase for 2007. I take no pleasure in doing so.

The Board of Directors, meeting on December 15, 2006, passed a budget for 2007 that increases dues for this year to $350 beginning with the spring term. In addition, the board agreed that OLLI could not borrow against the $50,000 Osher-provided money without the express approval of the board. It also reduced the committee's recommendation of a six-percent staff salary increase to four percent in 2007, but it offered a two-percent bonus amount to be taken from 2006 funds. Further details of that meeting will be published in Friday's OLLI E-News.

Here is the basis of the dues question: the finance committee calculated a budget for 2007 of $345,000 that divided by 725 members equals $476 per member. However, to help offset that figure, we do have other sources, including interest from invested capital and interest money from our million-dollar Osher endowment that will begin paying with 2007. (The endowment does not pay out the full $40,000 per year until 2009 but then we can count on it for years beyond.) We also have an untouchable $50,000 rainy day fund, and a Friends of OLLI fund for capital expenditures. Neither of these can be used for operating funds.

Beyond that, we have additional excess cash of $70,000 that we could use, or we could dip into the $50,000 that the Osher Foundation made available for loan purposes to be paid back by 2014. Some board members felt we should hold on to those funds as long as possible, considering that we might need those funds sooner rather than later. This is not an easily resolved dilemma.

Just as with our personal budgets, looking forward into the year ahead, we have to plan for what is known and what is unknown. So it is with a large budget for an organization like OLLI. The board faced two options: the finance committee recommended we take the short view and plan just for 2007, waiting to see how things develop this year. That would include whether the Loudoun project will be successful and substantially increase revenue, but also whether a heavy financial hit is lurking right around the corner in the form of the UBRC move and associated costs. The finance committee's approach raised the dues to $320 and proposed dipping into the cash reserves or the Osher fund to finance the expected shortfall.

The other view, the long view, is more conservative. It would take into account all the unknown possibilities and be more prudent in not working down our cash reserves substantially or the Osher loan capital this next year, but instead have dues finance expected costs at $350 for 2007. Still, that plan does not preclude additional, albeit lesser, increments in years ahead.

It was this latter position that was adopted unanimously by the board, encouraged by non-members who had supported such a dues raise at the open board meeting on the budget on December 7th. The words "bite the bullet now" were persuasive coming from members-at-large.

I’m sure you will realize how difficult it was for 18 members to reach this conclusion and I hope you will also weigh the value of OLLI membership against this increment and consider your own investment in OLLI a personal good choice.

Warmly, and with best wishes for a fulfilling New Year,

Debbie Halverson
President, Osher Lifelong Learning Institute at George Mason University

Dear Fellow Members:

You recently read an article in OLLI E-News about the Board’s proposed 2007 budget review meeting held on Thursday, December 7th that nine of your fellow members attended. We were pleased with their participation and interested in their comments with regard to the dues increase. That meeting’s highlights, provided by the secretary, will detail what occurred at that meeting in this week’s E-News.

Board members will act on the proposed budget this Friday at their regular December meeting at 10 am. You are, as always, welcome to attend.

The dues increase obviously will interest all of you. As a dues-financed institute, almost all of the costs of operating OLLI, from staff salaries and program costs, to maintenance, catalogs and mailing, are underwritten by revenue derived from your dues. In addition, we are obligated to look to our future, including the potential move to another location and its related costs, as well as to any emergency situation that could arise. We have an untouchable $50,000 rainy day fund set up for that which may increase in future years. Our Friends of OLLI fund is set aside for GMU scholarships and capital projects such as new comfortable chairs for our classrooms.

The treasurer points out that we are in good financial shape, with undesignated cash and the rainy day fund totaling $120,000. Available to us also is $50,000 that the Osher Foundation separated out for us from the million dollar endowment that we can access on a loan basis at 4% to be repaid by 2014. The interest on the full million endowment will pay off $12,000 in 2007, $26,000 in 2008 and the full interest of $40,000 in 2009.

The overall budget for 2007 is estimated at $345,000. Divided by 725 members, this amounts to $476 per member. However, because of all monies expected to be available in 2007, the finance committee recommends dues at $320 to begin with spring renewals. They note, however, that an additional increase will occur in 2008. Members are reminded that scholarships are available and can be applied for in the office. All such requests will be kept completely confidential.

Challenging the finance committee’s recommendation that future increases be taken in steps, several members voiced strong feelings that the board should "bite the bullet" and increase dues in 2007 to a greater level and "get it over with." Further, some did not like the concept of "borrowing" against our own Osher money, with payback once the full interest comes into play in 2009; the alternative to that would mean drawing down on a projected reserve of $70,000. Regardless of which alternative is used, the $50,000 rainy day fund/safety cushion remains intact.

One board member has indicated he will offer an amendment to the finance committee’s resolution on the budget to include a larger dues increase.

Members, as always, may join us as we deliberate this all-important subject.

Warmly,

Debbie Halverson
President, Osher Lifelong Learning Institute at George Mason University