Are We Doing OK?
A brief note on the financial strength of Phi Sig
“Reports of my death have been greatly exaggerated” - Mark Twain
Despite COVID, Phi Sigma Kappa Omicron is in an enviable financial position compared to other ILGs and even in comparison to ourselves over the past several decades.
From a cash perspective: As of the end of our last fiscal year, we had over $300k in liquid assets, which is more than adequate for our expenses and our income.
From an income / revenue vs expense perspective: MIT has graciously covered the lost rents we would have had from the active chapter during their COVID-19-related absence. Assuming they return in Fall 2021, our revenue should continue to exceed our expenses, including payment of the long-term debt, such that we regularly build our cash position.
Despite a virtual rush due to COVID, the active chapter found success, with nine fantastic young men pledging in February 2021! In terms of quantity, nine might be considered modest in regular years, but given how horrible rush was for all fraternities, everyone is pleased with the result. The main thing is there will be no massive gap in pledge classes due to COVID.
In addition, our commercial tenant, Sway Spa, is still in business and has received PPP dollars. This has enabled them to pay rent most months since the pandemic started.
From a debt perspective: We have a relatively low, very manageable long-term debt load, all at low interest rates. We’re going to take on short-term debt to fund construction costs for Project COVID Opportunity, but our expectation is that donations to the preferred Building Fund (and alternatively to the IRDF) will cover those obligations. We are on our way to achieving our fundraising goals, but we encourage you to reach out to the fundraising committee (PhiSigEngagement@GoogleGroups.com) to learn what you can do to participate to make sure we’re successful.
From an asset (physical plant) perspective: We have some deficiencies in the physical plant of both buildings, but Project COVID Opportunity is specifically targeting our most critical challenges. So by the time the actives return to campus in Fall 2021, our house should be one of the safest and most appealing houses associated with MIT.
From an “emergency preparedness” perspective: With a low debt load and plenty of cash on hand, we are in a good position to handle the unexpected. We feel confident in the Alumni Association’s ability to absorb some turbulence, including getting support from the entire brotherhood should that prove to be necessary.
To summarize, we'll simply say this: As far back as we can determine, the Phi Sig Alumni Association hasn’t been in a better financial position. We would welcome the chance to discuss or review financials with any alumni--the door is always open.
