Fundraising Plan for a New C&O Canal Boat at Great Falls Tavern

Exhibit #1 to Agreement No. G3100050005

 Friends of Historic Great Falls Tavern

C&O Canal National Historical Park

Fundraising Plan for a New C&O Canal Boat at Great Falls Tavern

Introduction

The Friends of Historic Great Falls Tavern (The Friends), a non-profit corporation, is a long-term partner of the National Park Service (NPS) in supporting the maintenance and preservation of the Great Falls Tavern in the Chesapeake and Ohio (C&O) Canal National Historical Park. The Friends raise funds from annual membership contributions and private contributions from individuals, corporations, and non-profit organizations.

C&O Canal Boat Fundraising Campaign

• The Need for a Fundraising Campaign

The NPS has a limited budget for the projects to be performed for this year and next in the C&O Canal National Historical Park. While the acquisition of a new canal boat is of value to the park, there are projects with a higher priority that need to be addressed and completed in the next two to three years. School groups from all over Maryland come to the park at Great Falls and one of the important educational experiences was to ride the canal boat through a working canal lock and on up the canal, the boat being drawn by a team of mules as was done 150 years ago. The students at Seven Locks Elementary School in Bethesda, MD used to ride the boat every year as part of their learning about the history of Maryland. In the spring of 2003 the hull of the old canal boat cracked to the point where the boat was not safe to use in the canal and could not be repaired. Over 18,000 people a year used to ride the boat with over 10,000 of those people being students as part of their education.

• Fundraising

In April 2004 the students of Seven Locks Elementary School decided they were going to start raising money on their own for a new canal boat. Through private donations and sponsorship of a canal towpath event on a Saturday, they raised $3160. Their time and effort to raise this money must not go in vain. The Friends of Historic Great Falls Tavern, inspired by the students’ effort, has joined with these students and has begun a campaign to raise $601,000 to have a new canal boat constructed in accordance with NPS specifications. The Friends will donate the boat to the NPS for use on the canal in the Great Falls Tavern area of the park. The Friends have received a grant of $200,000 from the State of Maryland that will inspire private donations from individuals, corporations, foundations, and other non-profit organizations.

• Additional Expenses Resulting from the New Canal Boat

The goal of the campaign is to have a new boat operational for the FY2006 season.  The park has funding available to cover the additional costs of the boat operation for the FY2006 season.  The park will be submitting a funding increase to cover the additional costs for the FY2007 and subsequent seasons.  Aggressive recruitment of volunteers will be done to minimize additional operational costs.  Excess funds raised in the fundraising campaign will be used either toward operational costs or placed in an endowment to offset future costs. 

Methods of Fundraising

The Friends, in cooperation with the NPS, will use the following methods in raising funds to have a new canal boat constructed and purchased to donate to the National Park Service.

• Placement of a donation box in the Great Falls Tavern Visitor Center
• Use of a donation box on the old canal boat when a volunteer (s) is/are present.
• The Friends will distribute flyers and brochures detailing the new canal boat campaign at approved visitor contact points.
• Holding fundraising events
• Meeting with and requesting donations from foundations and corporations 
• Meeting with and asking for donations from people who have an interest in the C&O Canal National Historical Park and would be interested in making a large donation
• Requesting grants from state and local governments

Implementation Schedule

The implementation schedule detailed below is an ambitious schedule. Depending on the success of the fundraising campaign in acquiring the necessary funds to contract and have the boat constructed, the schedule could slip by two to three months. The Friends do have confidence that it will raise the required funds to build the boat. 

The Friends will identify three to four boat-building companies by visiting their sites to determine if they have the experience, facilities, and manpower to build a canal boat in accordance with specifications as determined by the National Park Service. The Friends will require from each company a written proposal detailing the costs and the schedule for starting and completing the construction of a canal. 

With the knowledge and tacit support of the National Capital Region, fundraising efforts began subsequent to the Regional Director’s approval of the February 1, 2005 Memorandum of Intent between C&O Canal National Historical Park and The Friends. 

Project Ending Date: May 2006

Milestones

January 2005 Community Meeting to generate interest for a fundraising campaign

June 2005 Reach halfway goal of fundraising campaign

July 2005 Draft boat design received from NPS.

November 2005 End of fundraising campaign

November 2005 Select boat-building company to build boat.

Sign contract with company

January 2006 Visit boat-building site to inspect shell of boat to determine if 

boat under construction is meeting the design and specifications

February 2006 Second visit to boat-building site

March 2006 Third visit to boat-building site

April 2006 Final inspection of boat

May 2006 Canal boat delivered to Great Falls site

Accountability, Costs, and Use of Funds

• Accountability

• Friends of Historic Great Falls Tavern

The Friends is a private, non-profit organization incorporated in the State of Maryland in 1972. It is exempt from Maryland state taxes, and from federal income tax under Section 501 (c) (3) on the Internal Revenue Code. The organization files a federal form 990, “Return of Organization Exempt from Income Tax” annually, which is available for public inspection. 

The Friends normally raises funds for its use by annual membership contributions from its membership. Other sources of funds are gifts from individuals either in the form of memorial gifts or an outright donation. Occasionally other organizations will make a donation for the Friends to use in our support of the NPS at the Great Falls Tavern in the C&O Canal National Historical Park. Expenditures from The Friends’ funds are governed by written by-laws. The Friends’ books are audited annually by an independent Certified Public Accounting firm.

• The Canal Boat Fundraising Project

All donated funds collected for the construction and purchase of a new canal boat are retained and managed by The Montgomery County Community Foundation (MCCF) in the C & O Canal Fund I – Historic Canal Boat. The Friends collects funds in the form of individual checks and keeps records of individual donors. Checks are turned over to the MCCF on a periodic basis with a list of donors. Donations in the form of cash collected in the donation boxes at the Great Falls Tavern are counted by two people from The Friends and deposited in the checking account of The Friends at the Mercantile Potomac Bank. The treasurer of The Friends sends a check to MCCF for the amount deposited. MCCF issues a quarterly statement detailing the fund’s financial activities.

• Cost of the Project

The cost of the project is projected to be $601,000. This includes the cost of the construction of the boat, the cost to transport the boat from the building site to Great Falls Tavern, and cost of contingencies, if any. This cost is based on an estimate given to the NPS by a naval architecture firm, Diverse Designs, Inc. of Annapolis, MD. The firm provided the NPS with a preliminary design and drawings. The cost of transporting the boat will depend on where the boat is built. It is hoped that the boat will be built by a boat-building company in Maryland.

• Use of Funds

Funds will not be expended without prior approval by the NPS. Funds will be used for the building and transport of the boat. Some funds may be used to pay for fundraising materials and activities. Consistent with Director’s Order No. 21, fundraising, management, and other overhead costs related to fundraising activities shall not exceed 20 percent of the total amount of funds raised over the life of fundraising activities occurring during the term of Agreement No. G3100050005. 

The Fund Raising Plan

Individuals, corporations, and foundations will be identified as potential gift givers to the canal boat project. The Friends will approach donors who have given in the past fundraising efforts for the park, specifically those who gave funds for repairing the canal after the 1996 floods. Fundraising events will be held for potential donors. A brochure and a flyer have been developed. Other fundraising material will be developed as the need arises.

• Individual Gifts

The Friends will be seeking gifts and pledges from individuals who have a strong interest in the C & O Canal National Historical Park and in the educational opportunities a canal boat provides students, especially at the elementary school level. For major gifts, each individual will approached by a member of The Friends or a member of the Canal Boat Advisory Committee, and the request will be tailored to the individual being asked. A list of individuals is currently being compiled.

• Corporate Gifts

National and local corporations are being identified for gifts to support the boat-building project. A presentation will be developed for explaining to corporations the reasons and needs of the project. A list of corporations is currently being complied.

• Foundations

Charitable foundations that The Friends think are interested in the park and in the education of children will be identified and approached to make a donation to the project. The Friends will ask the Montgomery County Historical Society, Maryland Historical Society, and the National Trust for Historic Preservation for names of foundations that might make a gift. The Friends will also make use of the Foundation Center in Washington, DC as a resource for potential donors.

• Brochures and Flyers

The Friends have developed both a brochure and flyers for public distribution. Both documents describe the reasons and needs for raising funds for a new canal boat, and both have been submitted and approved by the NPS at the C & O Canal National Historical Park headquarters. Flyers are distributed at the Great Falls Tavern, both in the visitors’ centers and on the old canal boat. 

• Fundraising Events

Fundraising events of dinners, picnics, and wine and cheese parties, and artist events will be held to invite people whom The Friends feel would be interested in making gifts. Some of these events will be held at the Great Falls Tavern with the permission of the NPS. 

Funds Secured to Date

So far, approximately $310,000 in state and private funding has been raised, leaving approximately $300,000 to be raised in order to complete the project. No funds raised to date have been spent for the project. The following lists donations that have received.

• State of Maryland - $200,000

• C & O Canal Association - $50,000 

• Private Donations by check - $56,000

• Donation boxes - $4,000

Fundraising Organization

Friends of Historic Great Falls Tavern

The Board of Trustees of The Friends will oversee all fundraising efforts for the new canal boat. The officers and members of the Board of Trustees are:

Don Harrison – President

Bert Swain – Vice-President

Elie Cain – Secretary

Russ Maisch – Treasurer

Jim Hartley – Historian

Joan Barkin

Bill Broughton

Carolyn Broughton

Ted Cain

Elizabeth Harrison – Membership

Lee Anne Jillings

Tina Kelley

John Lindt

Ray Mushal

Pattie Neal

Canal Boat Fund Steering Committee

A steering committee consisting of four members of The Friends is coordinating all fundraising efforts and contacts with perspective boat builders. They are Don Harrison, Elie Cain, Jo Reynolds, and Ted Cain. Mr. Cain, a retired project engineer, is the project manager for the project and the contact with perspective boat builders.

Canal Boat Fund Leadership Committee

An advisory committee of community leaders and individuals has been created to advise The Friends in its fundraising efforts. The members are:

State Senator Brian Frosh – Maryland District 16

State Delegate William Bronrott – Maryland District 16

State Delegate Jean Cryor – Maryland District 15

Andrea Alderdice – President, Potomac Chamber of Commerce

Elie Cain – Secretary, Friends of Historic Great Falls Tavern

Ted Cain – Friends of Historic Great Falls Tavern

Nancy Dacek

Honorable Gilbert Gude, Former member of the U.S. House of Representatives – Maryland

Don Harrison – President, Friends of Historic Great Falls Tavern

John Kimbrough – C & O Canal Association

Carl Linden – C & O Canal Association

Chuck Lyons – Chief Executive Officer, The Gazette

Jo Reynolds – Friends of Historic Great Falls Tavern

Luette Semmes – Friends of Historic Great Falls Tavern

R. Mallory Starr – Consultant, Sequoia Presidential Yacht Group LLC

Sally Rudney – Ex-officio, Executive Director, Montgomery County Community Foundation

All members of The Friends and Canal Boat Fund Advisory Committee are serving on a voluntary basis. No member will receive any funds or gifts for their time serving as a member of the Board or the Advisory Committee.