The assets of the AAVSO include the Endowment as well as tangible fixed assets such as the existing Headquarters building, computers, furniture, etc. The Endowment is a liquid asset (stocks and bonds, professionally managed by Back Bay Financial Group) that generates income. We use that income to pay for salaries as well as operating costs of the Association. The rule of thumb is that you can use about 5% of the "total return" (that is, interest, dividends and appreciation) of an investment safely. Since a strict percentage return means you can withdraw more on good years and less on bad years, you usually use a rolling average of the past 5-10 years of your investments to smooth things out. Otherwise, since the vast majority of our costs are staff-related, we would be hiring and firing people on an annual basis.

49 Bay State Road, Cambridge, MA 02138, USA

The purchase of 49 Bay State Road as our new Headquarters is therefore a transfer of some of the Endowment income-producing funds into the fixed asset of a building. It does not mean that the assets of the AAVSO are decreased, but what it does mean is that a certain portion of investment income is no longer available. In our case, after the sale of the old Headquarters building (25 Birch Street), it means an income loss of about $50,000 per year. Since our staff is already overworked and cannot be reduced without significantly impacting our ability to serve our members and researchers, it means we have to tighten our belts in other areas in order to prevent additional withdrawals from the Endowment.

This purchase is a necessary step if the organization is to grow, and is important to safeguard our archives from future floods and disasters. I would have liked to delay the purchase by a couple of years, but you have to take risks when the opportunity arises, and this one was just too good to pass up.

In the short term, what the purchase means is that we need to replenish the Endowment to make up for the financial transfer, so that we have the same amount of income from the Endowment as we currently enjoy. This means we are asking for donations from all members and observers. We offer many means of accepting gifts, and our non-profit status means these donations are tax-deductible. We can handle pledges, where you pay a small sum each month that adds up with time, if that makes it easier for you. Note that there are many ways to increase your net donation without any additional cost to you. One example is the donation of appreciated stock, where you do not have to pay capital gains, yet can take the full value of the stock as the donation. We are asking for a total donation of about $20/month if you spread it out over 4 years, or in hard terms, something equivalent to the cost of a small telescope or a set of good eyepieces.

For those that have somewhat larger pocketbooks, please consider becoming a substantial benefactor to the AAVSO. We are willing to name sections of the building in memory of anyone, and have large-ticket items (such as new siding, windows, sprinkler systems, interior refurbishment) that are ideal for a single donation.

If you are not able to contribute financially, then consider volunteering if you have talents that are useful to the AAVSO. We need the outside of the building painted, some fences built, a garden shed constructed, pavement removed, interior renovation, etc. If you come, we'll use you.

In the longer term, we will be submitting grant proposals to NSF, NASA and private foundations to pay for salaries and new projects. These funding opportunities continue to shrink as governments reduce research and development funds. As an individual, you should consider adding the AAVSO to your will or other estate plans. We list many such opportunities on the "Leave a Legacy" section of the Web site.

I don't like fundraising either. Getting bombarded with end-of-year donation activities, pledge drives on public TV and radio, etc. is annoying. Yet, it is the members of an organization that know it best and understand how contributions can help it continue to provide services to the community. I hope you take this request in the serious manner in which it is being made, and contribute what you can. We will be sending out fundraising letters and raising the awareness level for donations on the Web page. Bear with us as we grow to better serve you and your friends!