UPDATE, Sept. 13
For some different perspectives on the demise of People for
Puget Sound:
Reporter Lynda Mapes interviews Denis Hayes of the Bullitt
Foundation and others in her story in the Seattle
Times.
Mike Sato, longtime communications director for People for Puget
Sound, offers his viewpoint in his blog
“Salish Sea Communications.”
Alf Hanna recalls the good work done by People for Puget Sound
in his blog
“Olympic Peninsula Environmental News” and includes this terse
observation:
“Tom Bancroft’s comments to the press about not knowing the
financial status of the organization are simply not accurate. There
is nothing more needing saying than that I was there, on the board
when he was hired. He knew full well what the situation was. He’s a
smart guy, who knows how to read a financial report. But this isn’t
about Tom. It’s about the Salish Sea.”
—–
When a well-established institution like People for Puget Sound
suddenly disbands, it’s like a death in the family for supporters
and colleagues. Questions about what happened hang in the air.
Explanations never seem adequate.
How could People for Puget Sound manage to survive and wield
great influence for 20 years only to go under a year and a half
after a new executive director takes control?
Kathy Fletcher, who helped form the organization in 1991 and
served as its executive director for 20 years, seemed happy to pass
the reins of the organization to Tom Bancroft, who had worked at
the top levels of the National Audobon Society, Wilderness Society
and other groups.
Here’s what Kathy said at her retirement party:
“Beyond what you can read about Tom on paper, I can now say,
after working with him for a little over two months, he is the
right human being to lead People for Puget Sound. His judgment is
excellent; his instincts are great; and his people skills are
terrific. People for Puget Sound is in good hands.”
Tom Bancroft
I’ll come back to what Kathy told me today, but Tom’s take on
the situation is that People for Puget Sound grew faster than
revenues allowed from about 2007 to 2011 (before his arrival), and
he was unable to make enough adjustments to keep things going, no
matter how hard he tried.
“This was not expected when I took the job,” Tom told me. “I
discovered soon after I got here that the organization was larger
than we could afford.”
He says he took over as director in April of 2011 and within a
month began to eye the balance sheet and worry about the
future.
“I said, ‘My god, what have I gotten into,” he noted.
The organization had taken on a $300,000 loan in 2010, using as
collateral more than $500,000 in reserve funds.
“We had a lot of reserves, but we had to contract back down to
what the revenues were,” he said.
Near the end of last year, six full-time and two part-time
staffers were laid off from a total staff of about 25 people.
A fund drive last spring could have helped restore the
organization to an even keel, but the effort failed to generate the
level of donations required for success.
In May, another five full-time staffers were laid off. Others
left on their own.
“It’s not that any one thing fell apart,” Tom said. “The
economic reality affects all funding. Foundations are not having as
much money as before. Individuals don’t have the money to give. It
is a tough time right now…
“I got to a point where I still needed to do cuts, and cutting
staff would not work, because we wouldn’t have enough people to run
the programs. I was caught in a bind.
“I thought we could try to squeeze through this. But I would
rather we protect the mission and keep it going than try to keep us
alive (until nothing is left).”
With board approval, Tom used most of the remaining reserve
funds to pay off the $300,000 loan. The remainder is going into a
transition effort designed to move the programs to other
environmental groups.
Kathy Fletcher
Kathy Fletcher said she worked hard through the transition
period before her retirement in 2011 to make sure everything was in
order and a new director was prepared.
“This is shocking and sad,” she told me, referring to the news
that People for Puget Sound would come to an end. “I never would
have imagined that this would have happened.”
Kathy said when she left the organization, there was plenty of
money in the reserve fund to cover the $300,000 line of credit and
more. The group had been dipping into the reserve fund for two or
three years, she said, but that’s why the organization had amassed
such a large fund to begin with. The challenge, as it has always
been, was for the organization to raise donations, she said.
As with any nonprofit group, it takes constant attention to keep
the budget in balance, she said.
“Looking at how the economy has not bounced back, I can see that
some cutbacks may have been necessary. It requires constant effort,
sometimes a huge amount of effort.
“The fact that we borrowed against our line of credit was
daunting to the new director, but that was a challenge,” she told
me. “It meant a fund-raising burden, but it should not have
resulted in closing things down.”
Still, Kathy acknowledges that she has been completely gone from
the organization and does not wish to place blame now.
Mike Sato, one of the founders of People for Puget Sound and a
public communications expert, lost his job during last year’s
layoffs. Mike says the executive staff had worked for two years to
prepare for Kathy Fletcher’s departure and the transition to new
leadership.
“Some people will think that the charisma of the organization
went away with Kathy,” he said. “But we made a real effort to
establish the brand ‘People for Puget Sound.’ We were trying to
say, ‘We are 20 years old and moving ahead.’”
During the 20 years of the group’s existence, Sato recalls other
times when finances were tough.
“At times, some of us deferred salary to keep the organization
going. We did creative financing, but we always pulled through,
because we looked at this as a real cause rather than a balance
sheet.
“Would another group of people have done things differently?” he
wondered. “We did it because it was a cause, and you do whatever
needs to be done. It is not financially impossible.”
Tom Bancroft said he is proud of the advocacy and policy
accomplishments by the organization over the past year. He says he
and his staff worked hard on the Puget Sound Partnership’s Action
Agenda, on the Department of Ecology’s new statewide stormwater
permit and on agreements dealing with combined sewer overflows in
King County and the city of Seattle.
“If we can save the mission and keep the mission strong, I will
feel good about walking away from here,” Tom told me. “Puget Sound
is a fantastic body of water, and it’s critical to the well being
of the people who live here.”
To save the “mission” of People for Puget Sound, Bancroft wants
to shift policy, advocacy and education programs to the Washington
Environmental Council, an environmental group that he sees as an
ongoing “partner” in the effort to protect and restore Puget
Sound.
He expects WEC to sharpen its focus on Puget Sound and even keep
the name “People for Puget Sound” as a branch of the
organization.
Meanwhile, restoration programs — largely funded with government
grants — could be turned over to EarthCorps, another longterm
partner involved in restoration projects.
Where grants are involved, an agency sponsor will likely need to
approve the transfer of funds to any group taking over funded
programs.
Mike Sato said it will take a firm commitment from other
environmental organizations to keep up the watch dog functions
performed by People for Puget Sound — particularly when it comes to
oil-spill and vessel-related issues.
“Agencies will move forward,” Mike said, “but only as much as
there is a constituency saying these things must be done.
“We’ve been wanting the (Puget Sound) Partnership to get its act
together. We wanted to see the Partnership succeed. And now they
seem to be getting it together, and somebody needs to be a watch
dog so that things don’t fall by the wayside.
“It looks like the Partnership will be OK,” Sato added. “I’m
just sorry that People for Puget Sound will not be around.”
Bancroft expects the organization will disband by the end of
this month.
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