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Finances
There are several reasons why we fell into trouble:
The staff was expanded - people cost money, money in the form of salaries, benefits, and office space. An example is the introduction of the region coordinators: New positions. Vickie Hardin did a great job for us in the west, but she and her colleagues cost money. If you have access to an old copy of the C & C, say from the early eighties, look at the size of the staff.
We started up LCA Properties - I don't know the funding of this activity but there had to be start-up costs; I don't know where those dollars came from.
Revenues did not increase to keep pace with the head count increase. Investment income was down and new associations and initiations dropped. That equals less money.
Insurance costs went up.
Less money came in as more money went out.
Should folks have been more vigilent? Yes, they should have been. Unfortunately, they weren't. As a result we will spend considerable time, treasure, and heartbreak putting our house in order.
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