Clausen Says Thanks; But Can't Pay All Workers? "Only Made $1,700 profit"?! A few days ago, a concerned NCCA member forwarded the following E-mail which was authored by 2013 NC Scholastic Championship Organizer Bill Clausen. Since it doesn't seem to contain any "secret" information, (nor does it say not to reproduce it), I am posting it for the edification of the entire North Carolina chess community: (Text in original form; neither corrected for grammar nor syntax) "All, We are awesome!!! And by we- I mean it took everyone that is pro youth chess in the state to make set up the biggest chess event ever in NC!  A clear sign that chess is growing once again. Our proceeds from this year are positive- if we add the profits and loss between our 2011 and 2013 Chess Achieves is now net positive ~$1,700 per event (~$3,400/2). The total expenses for the event this year were just under $29,874. This is still a high risk event. Meaning the potential to lose money on these events makes them very risky even for the largest chess programs in the state.  We are fortunate again this year the weather was good and we had a record turnout. Additionally the number of labor hours pre, during, and post are well over 1,400 hours!  We still can’t even pay everyone that helps make these events go minimum wage- that would have cost us an additional $12k each year.  Tell everyone that it would be great if we could put 1,000X that amount of money in to chess each year! Our event proceeds are used to grow youth chess.  Making money (profit) is a good thing when it is used to keep chess growing.  If events lose money every year then they will eventually end. Thanks again to all those that work so hard to make these events happen!  Each of you is making a positive difference in our state and for our NC kids! - Bill "Clausen" His message raises a number of questions? He states, "...if we add the profits and loss between our 2011 and 2013 Chess Achieves is now net positive - $1,700 per event ($3,400/2)..."  -- Uh, was that $400 two years ago, and $3,000 this year? Why not just state the actual net amount for this year? And, of course, no mention of the total amount grossed? He goes ahead to say, "... the total expenses for the event this year were just under $29,874."  -- His math seems to be quite specific, which indicates that he must have individually listed all expenses in order to arrive at that amount. But, unfortunately, that specific balance sheet was not included in his E-mail? He then states, "...this is still a high risk event... the potential to lose money...makes them very risky..."  -- That argument just doesn't make sense? For the past few years, the entry fee has skyrocketed as has the number of players! Other revenues include team rooms, K-12 programs (heavy on paid ads) and book and T-shirt commissions. Let's not forget the 30 sponsors that Chess Achieves already has! Though the Entry Fee at the site  was $69? this year, when one uses the average of only $60 per player, plus all of the other revenues, the approximate gross receipts easily approach $40,000!? The problem is, no accounting, for the past few scholastic events, has been posted for anyone to see. Sighting "1,400 total labor hours," he states, "...we still can't even pay everyone that helps make these events go minimum wage...that would have cost us an additional $12k each year..."!? -- OMG, how many assistant directors/volunteers/workers did he have? Surely, a registered 501-C3 Non-Profit Organization would have kept precise records of those partially paid "volunteers" listing all pertinent tax information about each and providing a contract which describes responsibilities and obligations. Naturally, that info would be filed with their current accounting and included in their annual report. (Yeah, right). And, finally, he states, "...Our event proceeds are used to grow youth chess..." Wow! That leaves little or nothing for Clausen's salary? (Which a number of folks have inquired about...) Did he do all of this work just for the good of youth chess? If so, let me be the first one to thank him... Considering the total amount of money involved, without making any assumptions, it would be best for everyone to wait for the results of a thorough comprehensive accounting by a randomly chosen Certified Public Accountant. One who actually verifies each receipt for authenticity and applies his seal to the final report! No harm in doing things the legal way. When I receive that document, I will promptly post it. I am personally amazed at the apparent mass apathy of the parents of 623 children, local organizers and directors, past officers and current officers who seem to be turning a blind eye and doing nothing to protect the interests of our future adult champions. Someone needs to step forward and make sure that things are done properly and legally. Until the NCCA opens the records and the checkbook to any member who wishes to observe them, the organization will continue to be nothing more than a private business, run for profit, by the same clique of good old boys... And, why no mention that $5,600 was just deposited into the NCCA treasury? What's the secret? One would think they would be proud of that! I remain, NM Leland Fuerstman Charlotte Chess Club - 82 members strong!!