Great news for the Historical Society of Western Virginia today — they’ve disposed of the debt that caused them to lay off their executive director and development director earlier in the year. Unfortunately they drastically reduced their endowment to do that, which is a bit of a gamble on the future, as endowments are intended, among other things, to provide a steady source of additional funds for a nonprofit during lean times. For more on the story see below.
The Historical Society of Western Virginia has paid off a $1.1 million loan that put the nonprofit in dire straits after the grand reopening of its history museum in May, society officials announced today.
The good news comes at a steep cost, however. The society took about $700,000 out of its endowment to fully pay off the loan, leaving about $250,000 in the fund.
“Our next goal is to rebuild the endowment,” said society president Bill Honeycutt.
The society took out the loan after failing to meet its $1.7 million capital fundraising goal ahead of the reopening of the history museum, then in June laid off its executive director and development director to offset a $20,000 monthly deficit.