Razorback Foundation Shows Decline in Funds
by February 23, 2009 12:00 am 88 views
As we perused the IRS Form 990s filed by all 501(c) 3 non-profit organizations, it became pretty clear why the University of Arkansas athletic department went to the well for a $5 million line of credit last fall to support its programs.
Not much is generally known about how the Razorback Foundation (the private fundraising and support arm of the athletic department) operates, but its 2007 fiscal year report shows the organization’s net assets declined by more than $5 million versus 2006.
The RF reported net assets as of June 30, 2007, of $13.4 million compared to $18.6 million in 2006, despite collecting a record $15.8 million in revenue. Expenses totaled nearly $21 million during the 2007 year, nearly double the $11.3 and $11.1 million in 2005 and 2006, respectively.
The RF had outlays for scholarships totaling $8.2 million, a whopping $4.7 million more than in 2006 and $5.45 million more than 2005.
It also spent more on construction and renovation during 2007 than it did during all of 2005 and 2006 with $6.85 million compared to $6.8 in the prior two years (our free subscription to Guidestar.org only let us go back that far).
A huge chunk of that 2007 expense was related to John McDonnell Field, which went millions over budget thanks to the overtime hours required to ready it to host the 2006 Southeastern Conference Championships.
The 2007 outlays also don’t reflect the $3.5 million “golden handcuffs” giveaway to former football coach Houston Nutt in November 2007 or the $2.8 million in salary for new head man Bobby Petrino, most of which is footed by the RF.
Other interesting nuggets from the 990s showed that the RF sold 30,000 shares of Wal-Mart Stores Inc. stock during 2007, worth around $1.47 million and representing a net gain of $33,700.
They also show that former RF president Chuck Dicus’ base salary increased by nearly $25,000 from 2005 to 2007, and his total compensation was $239,080 when he was let go a couple weeks after athletic director Jeff Long announced the UA’s $5 million need.
The 990s also show that companies owned by Jim Lindsey, an RF director and chairman of the UA Board of Trustees, received $1.4 million in contracts from 2005-07, representing just more than 10 percent of the total construction expenditures.