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LNC Has Financial Difficulties

Readers aware of the recent Libertarian National Committee decision to attempt to borrow against its assets may wonder what the financial issues are. Why does the LNC need the money? The LNC Financial report for May, covering through the end of April, makes matters clear. The LNC faces serious financial difficulties.

The LNC had a budget for this year totally 2.47 million.

For the first third of the year, LNC income fell nearly 30% short of budget. LNC income was $510,000 of the budgeted $710,000, a shortage of $210,000. In contrast, the 2020 budget had $520,000 as income to date. January-April 2022 income thus roughly matches the January-April income from two years back.

The LNC did trim its spending, relative to budget, for the first four months of this year. The LNC spent $105,000 for fundraising and $523,000 for other operating expenses, a total of $628,000, leading to a deficit of $118,000 so far this year. Major spending cuts so far this year, spending relative to the budget, include $53,000 for compensation, $30,000 for candidates, campaigns, and initiatives, $15,000 for administrative costs, and $11,000 for membership fundraising.

Unfortunately, those cuts have still led to a budget deficit for the first third of the year of $118,000. Having noted that income so far this year roughly matches 2020, when the budget was approximately in balance, once asks where spending has been increased relative to 2020. Compensation is up $63,000, candidate/campaign/initiative spending is up $42,000, and ballot access is up $58,000.

26 Comments

  1. Rick Rick May 24, 2022

    How about stop electing corrupt LNC members like Richard Longstreth and eliminate some of the useless paid positions. Getting better candidates instead of Bill Weld and Vermin Supreme types will help too.

    Bilyeu should be fully investigated too.

  2. George Phillies George Phillies May 24, 2022

    RIck, Let’s hear your evidence that Longstreth is corrupt.

    Which positions do you think are useless? Let’s hear some names.

  3. Rick Rick May 24, 2022

    Longstreth attempted to steal parties in NH, DE, MA, and CO. He never goes against what chairs Sarwark, Bishop and Bilyeu want or ever disagrees with his opinions. He was even questioned by his employer over this.

    The affiliate support position for starters should go because they don’t actually support affiliates.

    George Phillies is a supporter of fake libertarians and fraudsters as he has proven here over and over

  4. George Phillies George Phillies May 24, 2022

    Affiliate support — I seem to hear reports of training sessions for candidates, but I may have misunderstood. You said ‘positions’, so we are listening for one more, even if you were wrong the first time.

    Steal parties…What a bizarre claim. The fake Libertarians locally are the NH candidates for Senator and Governor, and I have not supported them. Anyone familiar with my books Funding Liberty and Surely We can Do Better will be aware that I have campaigned vigorously against fraudsters in our party.

  5. Rick Rick May 25, 2022

    We don’t care about your lame books.
    Do you support going deeper in debt with this loan? I’m sure you do. By the way, this isn’t a libertarian thing to do. I did not consent into my money being used for interest.
    Dump the communications director, because there isn’t really any communication. The website news is very outdated.
    The fraudsters are the Bill Welds and outright communists in the party. You obviously have no clue what a libertarian is.

  6. David Jones David Jones May 25, 2022

    It appears Phillies supports reckless spending.

  7. George Phillies George Phillies May 25, 2022

    David: Clever, but entirely backwards. I have spent more than two decades being a critic of the wastrel spending of the LNC, not to mention the Brown, Barr, and Johnson campaigns, as detailed in my books Funding Liberty and Surely We Can Do Better, not to mention the pages of Liberty for America Magazine and Let Freedom Ring! magazine, both found on the web page cmlc.org.

    For this reason, with respect to the two Massachusetts parties, I have some hope that the Mises and disappointed candidate group could possibly do a better job than the LNC-recognized group, which has traditionally put its money into wastefully extravagant conventions, candidate ballot emplacement of negative value for running candidates, and no outreach to its own members. THe Mises and candidate group could hardly do worse.

  8. Joe Joe May 25, 2022

    Phillies is here merely to promote his terrible books. He must need money badly.
    Phillies also is against recall petitions apparently.

  9. George Phillies George Phillies May 25, 2022

    Rick: Bad guess. I was and am opposed to the halfwit loan. This is a recycle of the financial mess the LNC got into is 2002, namely the asset against which the loan is covered includes, I am told by a reputable source, the convention income not yet booked as a party asset. If the asset is used to pay the loan, what will pay the convention bills?

    Joe, Surely We can Do Better is 99 cents. Funding Liberty is Free. If you actually think I can make money on that, you should have someone take charge of your finances, simply to protect yourself. Given the expenses involved in the research, it is highly unlikely that I will ever net any money from the volumes. Most chapters of Funding Liberty are available for free on the cmlc.org web pages.

  10. George Phillies George Phillies May 25, 2022

    Now here is a bylaws-induced total waste of money:

    “As a reminder, the FEC reports are done on a cash basis while our financial reports are
    done on an accrual basis as required by our bylaws which require adherence to GAAP”

    GAAP is for places that deal with the IRS or the SEC. That’s mostly not us. Financial reports should agree with FEC reports, and be made on a cash basis, which would cave a monthly conversion step.

  11. Earl Earl May 25, 2022

    Phillies is so desperate for cash he’s had to reduce his price to 99 cents. I wouldn’t read it if he paid me 99 cents. It’s not worth my time to read lies.

  12. George Phillies George Phillies Post author | May 25, 2022

    Ed: It has always been 99 cents. As you have not read it, how do you know it contains lies? Your Lord leader told you? I am not urging you to read the volume, though it is quite short; I wouldn’t want your lips to get tired.

  13. Ed Ed May 25, 2022

    You constantly lie on here, so why would I expect differently from your book?

  14. Austin Cassidy Austin Cassidy May 25, 2022

    “you constantly lie on here” — interesting comment from a person who constantly posts under random first names like Ed, Ron, Earl, Rick, Steve, etc.

  15. ATBAFT ATBAFT May 26, 2022

    No, GAAP reporting for LNC is not a “total waste of money.” FEC is looking for actual donors. GAAP is for reporting the financial status of an organization, in terms of assets and liabilities, to interested parties – in the LNC’s case, its members. GAAP statements give a truer picture of financial stability, commitments made, liabilities incurred (such a lease commitments on offices rented). Choosing a “cash basis” financial report for LNC, with a million bucks or more shuffling through the annual budget, could be used to manipulate and misstate true conditions.

  16. George Phillies George Phillies May 26, 2022

    A proper cash basis report would include future liabilities, for example, accrued vacation time. It would not include fairy tales, such as the belief that office furniture, now second hand, is saleable as an asset. It would someplace have a value for convention income to date, whether booked or not, so that the LNC can tell if there is good news or a disaster incoming.

    Also, while the reference is obscure, the claim that the current report is GAAP compliant is open to question, namely I once found, from a major accounting firm, the statement that GAAP compliance requires that your reports match the agency to which you report, in our case the FEC and not the IRS, so that the Board can tell if the FEC reports are correct.

  17. George Phillies George Phillies May 26, 2022

    Also, FEC is looking for how the money is spent, not just donors, meaning that donors can tell where hteir money is going.

  18. ATBAFT ATBAFT May 26, 2022

    There are many accounting reporting practices to ensure transparency and full disclosure. The profession currently thinks GAAP is the way, even with its shortcomings. George’s goal is correct; so “the LNC can tell if there is good news or a disaster incoming.” First thing to avoid would be some future Exec. Director reporting a huge upturn in membership dues, as of 12/31, on a cash basis, without reporting that a fund raising consultant was due a huge sum for creating the membership increase, but the bill won’t be paid until 1/15 so it doesn’t need to be shown on “cash basis” accounting. Detailed accounting costs money but current software programs should be able to easily, and cheaply, churn out one set of reports for one entity, like the FEC, and another set for LNC and Party stakeholders.

  19. George Phillies George Phillies May 26, 2022

    A competent cash basis report will show items to be paid.

  20. ATBAFT ATBAFT May 26, 2022

    “cash basis report will show items to be paid.”
    The Accounting profession begs to differ as any google search will show.
    However, let’s not quibble over accounting procedures and worry instead about how, and if, the LP can become more effective.

  21. Sammy H Sammy H May 27, 2022

    Always funny when fiscally “conservative” people can’t handle their own money

  22. Andrew Andrew May 28, 2022

    This is entirely the Mises Caucuses fault. I and hundreds of others have stopped giving after this idiotic in-fighting started. Never coming back. If the Mises Caucus wins control of this party, I see funds collapsing to less than $200k a year and the party falling to no more than 10 states with ballot access.

  23. Thane Eichenauer Thane Eichenauer May 28, 2022

    > This is entirely the Mises Caucuses fault.

    Really? If all was going well there would not be an opportunity for the Mises Caucus to take advantage of.

    > If the Mises Caucus wins control of this party, I see funds collapsing to less than $200k a year and the party falling to no more than 10 states with ballot access.

    Possible. OR the LP might do better than ever. Only time will tell.

    I am very thankful that IPR is here to cover this and other news of interest to non-duopoly voters.

  24. Robert Milnes Robert Milnes May 28, 2022

    Thane, if somebody told potential donors the LP was going to try a different strategy to win, they might give it a try.

  25. Thomas L. Knapp Thomas L. Knapp May 31, 2022

    —–

    > This is entirely the Mises Caucuses fault.

    Really? If all was going well there would not be an opportunity for the Mises Caucus to take advantage of.

    —–

    Your statement is not an argument against the previous claim.

    In order for the Mises PAC to take advantage of things not going well, things had to not be going well. So why wouldn’t the Mises PAC be interested in causing things not to go well?

    I am not claiming that intention (it’s hard to divine the motives and machinations of a secretive Republican PAC from outside that PAC), but you just made a classic “cui bono?” argument in favor of the statement you thought you were arguing against.

  26. Seebeck Seebeck June 1, 2022

    Longstreth tried to steal the LPCO?

    That’s silly and absurd.

    I would know if that was tried. It wasn’t.

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