REDUCING FINANCIAL AND
OPERATIONAL RISK TO INCREASE
OUR FINANCIAL SUSTAINABILITY
GOAL: RAISE $230,000 TO RETIRE DEBT ON THE MORTGAGE.
CURRENT DEBT: The Alumni and Volunteer Corporation is servicing approximately $350,000 of debt remaining from the
mortgage of the house. The loan will come to term in 2023, at which point AVC hopes to be in a position to pay off the remainder.
THE CHALLENGE: At 85% capacity in the house, the revenue generated from dues, room and board, and summer rentals
currently covers the operating expenses for the house and servicing the debt. Fluctuations in revenue, such as less members living in the
house, will result in challenges paying on our debt obligations. This was exacerbated in 2020-21 by occupancy restrictions from the COVID
pandemic, which resulted in approximately $120,000 in lost revenue for those years. The need to systematically reduce and eliminate the debt
is critical.
OUR PLAN: The Alumni and Volunteer Corporation will continue with scheduled payments for the length of the loan. Contributions
from the campaign will help cover additional payments on the loan and refinancing if AVC can secure better terms. Once the loan is repaid, it
will alleviate the financial stress on the operating budget.
THE LOAN:
$335,000 at
4.78%
AVC spends $53,000
per year servicing
the debt
Interest is paid at
$1,350 per month
Loan comes to
term in 2023
