Club's Traditional Summer Financial "Curse" Subsides

The "summer curse" of unprofitable months at the National Press Club may be nearing an end.

Against a historical backdrop of triple-digit losses in July, the start of the traditionally slow summer period, the Club this year had a loss of only $34,000, compared to a deficit of $124,000 for the same month last year, Treasurer Keith Hill reported to the Board of Governors at its monthly meeting on Aug. 23.

The turnaround came by increasing revenues by about $37,000, to $880,000, and reducing costs by $50,000.

The results meant that on a cash flow basis, there was no need to dip into cash reserves to fund the small operating loss.

And the financial outlook for August, which is budgeted for a loss of $360,000, is on pace to meet or improve on that budget, with the operations receiving a boost from Restaurant Week and a series of summer weddings during a period when the Club itself does not have many events of its own scheduled.

Executive Director William McCarren projected that by the end of August the Club should finish with a cash position of $1.2 million, 20 percent more than mandated by the Board. He also forecasted that September and October should be significantly profitable.

President Alan Bjerga, in his report to the Board, said the Club had come a long way in improving its financial position in recent years, especially the state of its reserves during the summer when the Club has had to absorb losses. He recalled some years in which there were only $14,000 in reserves in August; now the projection is that there will be in excess of $1 million at the end of this summer.

"We have come a long way," he said. "But we still have a long way to go."

Bjerga also paid tribute to the "inspirational" work done by the Club staff on Saturday evening, Aug. 14, when an underground electrical fire in the neighborhood caused the evacuation of two hotels and the National Press Building, as flames skyrocketed 25 to 30 feet above the pavement. A wedding reception was under way at the Club at the time and staff evacuated everyone next door to the J.W. Marriott Hotel until the wedding party could resume in the Ballroom several hours later.

In other developments at the Board meeting:

• Rick Dunham, the president of the board of the Eric Friedheim National Journalism Library at the NPC, said the library was "on a glide path to self-sufficiency." The library, the non-profit arm of the NPC, provides professional development programs and scholarships and houses the Club archives. Dunham said Treasurers Keith Hill of the NPC and Sylvia Smith of the library board were working closely together, and past president Jerry Zremski hopes to have a strategic plan for the library in place this year. Dunham also said the library anticipates having a part-time archivist on the staff by Oct. 1 who would work three days a week.
• Thirty new Member applications were approved, bringing the total new members so far this year to 216, compared to 265 last year. Membership Secretary Angela Greiling Keane reported on initiatives under way to bring in more members, including offering a $50 Fourth Estate gift certificate to those Club members who sign on as sponsor for at least five new active, affiliate or associate members this year.
• The next meeting of the Board was scheduled for Tuesday, Sept. 14.

-- Myron Belkind, [email protected]