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Notes from the SCAR President, number 29 (14 September 2010)
SCAR's Finances, Part 2 - Contributions Beyond Membership Fees
Colleagues,
This note is the second in a series of three notes addressing various aspects of the financial health of SCAR and calling on SCAR members to assist SCAR to the best of their abilities during these difficult financial times. As with the previous email, the contents will be communicated to National Committees under my signature in a separate letter.
Chuck K.
Re: Contributions Beyond Membership Fees
In response to the diminishing value of SCAR resources that are an inevitable consequence of yearly increases in the cost of basic SCAR necessities such as salaries, travel, and other items, the budgets of a number of SCAR activities have been reduced. SCAR Delegates have chosen to address inflationary pressures by increases in fees every six or so years as onetime adjustments rather than yearly incremental increases (i.e., a 30 % increase in 2004; a proposed but not approved 20% increase in 2012).
As examples, in the 2009 and 2010 budget cycle, it was agreed that SCAR's core science programs, its Standing Scientific Groups and Scientific Research Programs, budgets were reduced by $4000 each, 23.5% and 19% respectively. For 2011 and 2012, the primary agreed budgets cuts were to capacity building of about 23%. In addition, administrative costs have been reduced by an average of 16% from 2008 and 2009 compared to average projected costs for 2011 and 2012 (due primarily to salary cost savings with hiring of new staff). These cuts were unavoidable as SCAR balances its budget each year and revenues have not been increased. Priorities are agreed and resources allocated accordingly. These long term trends are being addressed as agreed in 2010 but remain unresolved.
As we work toward a longer term solution, short term remedies are possible if member nations chose to make contributions beyond their annual fees. These special contributions can be generic or specifically targeted at an activity judged to be of high value to the contributor. Individual national SCAR members may place higher value on certain SCAR activities than others and wish to ensure these activities continue despite the collective decision on priorities. In the past the UK and Germany volunteered to double their contributions for a period of three years to assist in the transition to the new SCAR structure. South Africa ($2000 for 2008 fellowships), Italy ($5,000 for 2009) and India ($5,000 for 2009 and $10,000 for 2010) have made special contributions directed to the SCAR Fellowship Program. These additional contributions are highly valued and have allowed SCAR to maintain or expand activities despite overall budgetary constraints. Continued constraints on budgets will also limit SCAR's ability to develop new initiatives, and new directions will only be possible by eliminating other activities if other funds are not identified. As examples, in the 2011-2102 budgets just agreed, introduction of the Visiting Professor Program was indefinitely postponed, the KGI workshop was postponed, the major meeting fund was cancelled, the Secondment initiative was cancelled and the upgrade to the SCAR website was postponed.
If SCAR members are unable to agree on occasional increases in membership fees, budget cuts will continue and grow in the coming years. Depending on the consensus of SCAR Delegates, portions of the SCAR mission may have to be suspended or abandoned to ensure balanced budgets. One response to these budget reductions might be targeted contributions by SCAR members to ensure that the activities that they value most are continued. I ask that each of you consider such special contributions especially in the next few years as we attempt to build support for an overall increase in membership fees that may allow restoration of some of these programs in the future. One drawback of special contributions is that they cannot be budgeted for in balancing budgets and may be short-term in duration so they will only temporarily solve funding issues.
Procurement of external funds is another potential source of funds for specific activities and we will be diligently pursuing these avenues as well to maintain and build SCAR's portfolio of activities. I will address this strategy in a separate letter.-
Chuck Kennicutt,
President of SCAR
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