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KCL Shrinks its Deficit

A Day in the Life
Created Sat, Oct 31, 2020 by
Avatar of Mike DeGive
Mike DeGive
Karme Choling Residential Shambhala Community

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Karmê Chöling has lowered its monthly deficit substantially in the last month by following through on plans to host a Residency program.

“Residency has reduced what would have been a $10,000 deficit per month to $2,500, which — with our cash reserve — is a manageable amount,” said Betsy Railla, executive director of Karmê Chöling.

The Land Center will close the books on 2020 with expenses exceeding revenue by around $127,000. Thanks to Residency, the annual deficit is forecast to drop by more than 75 percent in 2021, to just $30,000.

“We can’t sit back and kick up our feet. But we don’t have to wring our hands,” Railla said.

Closing the gap entirely is within the realm of doable, Railla said.

This month, three new residents are joining the Karmê Chöling household, bringing the total to 17 and nudging the center’s finances closer to the break-even point.

While it’s true that Residency’s numbers fluctuate (with some residents ending their stay after three months, March’s population is expected to drop to 12), new applications are being processed even now that could materialize into more than enough new housemates to close the gap.

Karmê Chöling is forecast to end 2020 with $391,363 cash on hand, which includes $308,000 in repurposed Capital Campaign funds.

In March, the center was seriously considering a caretaker model, which would have left two staff members watching over the property. Programs, which Karmê Chöling based most of its revenue on before COVID-19, would theoretically be revived when the pandemic broke.

Leadership opted instead for a residential model, which they hoped would serve the needs of the sangha while at the same time stabilizing KCL’s finances.

The first wavelet of three residents arrived in August. In October, eight more were added to the household. Residents quarantine for ten days, then await results from a COVID test before moving into the Main House.

A suggestion to wallpaper the Communications office with hundred dollar bills was disregarded.

 


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