The Yellowstone Forever organization was in dire financial straits before the coronavirus pandemic struck/NPS file, Jacob W. Frank
Editor's note: This updates the article with a statement Yellowstone Forever posted on its webpage.
Yellowstone Forever, which has struggled financially since 2016 when it was formed by the merger of the Yellowstone Foundation and the Yellowstone Association, has been further impacted by the coronavirus pandemic and might not survive without significant reductions in its financial burden, Yellowstone National Park Superintendent Cam Sholly said Saturday.
The superintendent's comments came in the wake of the nonprofit's move Friday to lay off most of the staff of the Yellowstone Institute, and several months after a financial audit of the organization prompted concerns that "there is substantial doubt about the ability of Yellowstone Forever to continue as a going concern."
There was chatter circulating on social media channels Friday and Saturday that the nonprofit's board of directors had decided to permanently shut down the Institute, though Sholly told Traveler "we will get the Institute back on line." That said, the superintendent expressed serious concerns about Yellowstone Forever's stability.
"YF is at a point where if they do not take major actions to reduce their financial obligations, they will not survive," he wrote in an email. "They were in very bad shape due to a range of poor decisions made post merger - 2017/2018, and while we thought they were on a better track this past year, they were still very fragile when COVID hit its major revenue sources.
"Right now, they have really no cash reserves, they've accumulated massive debt once again; like many non-profits, their philanthropy is down substantially, and their costs are far exceeding their revenues," added Sholly. "The board needs to make major adjustments, which are happening."
While Yellowstone Forever's communications director, Christine Gianas Weinheimer, did not return a phone call inquiring about the status of the Institute, later Saturday a post on Yellowstone Forever's webpage said the Institute's programs would not return this year and probably not next year as the organization restructures "to ensure the long-term viability of our nonprofit organization so that we can maintain the trust and support of our many supporters and donors."
The statement, which was not signed, said the nonprofit has suffered financially from the coronavirus pandemic. Going forward, unidentified Yellowstone Forever officials said that with a "new, leaner structure, YF will be focused on projects designed to raise money for direct contribution to the park." Not mentioned was whether the organization would also focus on public education in the park, which was the hallmark of the Yellowstone Institute.
The statement also referred to unspecified layoffs of full-time staff. "Without taking both of these steps, YF could not survive," it said.
Yellowstone Forever's accountants, Anderson Zurmuehlen & Co. of Bozeman, Montana, had cited concerns about the organization's financial stability in their latest review of the financials, which covered Fiscal 2019.
In that financial review, dated February 17, 2020, the Yellowstone Forever board stated that "the Organization is working to reduce operating expenses based on its recovery plan, which was implemented in fiscal year 2020. The goal is to create efficiencies, reduce redundancies, and review vendor contracts for potential savings."
That statement, which did not include the Recovery Plan, also noted that Yellowstone Forever has two lines of credit totaling $6.5 million, with $3.7 million available as of February 28, 2019, that it could fall back on "in the event of an anticipated liqudity need."
While the coronavirus pandemic has greatly impacted the nonprofit, which operates bookstores inside the park, runs educational programs through the Institute, and raises millions of dollars for a wide variety of programs ranging from wolf studies and fisheries restoration to the Yellowstone Youth Conservation Corps, its financial problems predate the pandemic.
Philanthropic donations to Yellowstone Forever dropped by nearly $400,000 from Fiscal 2018 ($11,435,957) to Fiscal 2019 ($11,053,687). The cost to operate a dozen stores in the park was $3.3 million for the fiscal year that ended in February 2019, while the stores "generated $2,730,222 in net sales revenues and $782,728 in supporter contributions."
Operating the Institute cost $2,784,156 during the fiscal year, while revenues (educational tuition, fees, donations, and endowment proceeds) generated $2,178,063. Still, those revenues reflected a nearly $160,000 increase from Fiscal 2018, and participation was up to 7,897 from 6,130 the previous year. Overall, the documents said, "the Yellowstone Forever Institute had a record year" in fiscal 2019.
Since Yellowstone Forever's fiscal years end in February, the Fiscal 2019 financials actually reflect calendar year 2018 business and don't indicate how things went last year for the organization.
The Institute, which was the face of the Yellowstone Association, had been idled this summer due to the coronavirus pandemic, and on Friday the Institute's staff was either laid off or fired, according to some on the staff. Permanently shuttering it would represent a colossal failure of the 2016 merger. At the time, Heather White, who was Yellowstone Forever's first CEO, heralded the combined resources of the foundation and the association, stating that the new entity would "become a national model for public-private partnerships to protect and support the park."
"We will combine the outstanding history of educational programs, products, and services of the Yellowstone Association and the legacy of critical fundraising support from the Yellowstone Park Foundation into a dynamic, unified education and fundraising partner for Yellowstone and its splendor," White said in October 2016.
White's tenure raised questions about whether top staff was being paid too much. When she left the organization in June 2019 she was being paid $303,192 in salary and benefits. Just days before she left, the organization offered large discounts on summer programs in the park just weeks after reportedly laying off some staff.
According to the organization's FY2019 990, its overall salaries jumped nearly $1 million from 2018 to 2019, from $6.4 million to $7.3 million at the same time that revenues were dropping. It's seven top staff combined received $1.19 million in salaries during that period, which ended with Yellowstone Forever showing a $3.8 million deficit for the year. Overall, however, the financial document showed Yellowstone Forever ended the fiscal year with $14.6 million in assets.
Sholly described the Institute's status as one of an organization on hiatus, not out of business.
"The Institute has been an incredible partner over the past decades. It is filled with professionals who are very passionate about Yellowstone and have dedicated a tremendous amount to providing world-class education for Yellowstone's visitors," he said. "Year-to-year, the Institute is a revenue-neutral program, under normal conditions. Unfortunately, due to COVID, the Institute would not have done much programming this year, and even if they could have ultimately, it would likely have operated at a deficit. If YF was stronger financially, that wouldn't be as big of a problem. That is not the case.
"... We will figure out the Institute and the best path to pursue moving forward."
Through the years the institute has offered year-round programs, ranging from a day to a number of days in length, in the national park. Founded in 1976, the Institute's programs revolved around Yellowstone’s plants, animals, geology and history. In 2010 it opened its Yellowstone Overlook Field Campus near Gardiner, Montana; prior to that acquisition the Buffalo Ranch in Yellowstone's Lamar Valley was the base camp for many of the institute's field programs.
There was a lobbying effort in support of the Yellowstone Institute launched on Facebook.
The Institute's operations have been well-loved and developed a dedicated corps of participants and supporters. In light of the layoffs Friday, concerns that the Institute possibly would be mothballed prompted harsh criticisms of Yellowstone Forever's board.
"So disheartening to see the Institute is no longer. This is the worst mistake YF could have made," wrote Mikayla Bell on Yellowstone Forever's Facebook page. "Shame on the board members. This is going to be a mistake YF will not heal from."
Added Kathy Haines, "Don’t waste my time asking for money until you get rid of the current board."
In an open letter to Sholly posted on Facebook, Carolyn Harwood Bulin, who worked as program manager for Yellowstone Forever, said discarding the Institute would be a tremendous mistake that would greatly impact fundraising for Yellowstone Forever.
"Donors want to support education in addition to the dozens of other projects for which we raise funds. Donors have been skeptical for years about the merger, and if the Institute is dissolved under the guise of COVID-19 impacts, legions of supporters will know the truth," she wrote. "Yellowstone Forever’s reputation will not recover again, and there will be dire impacts on project funding for the park. If our philanthropy team is struggling to raise money now, how are they supposed to do so in the face of such additional adversity?"
Comments
The passion the Institute staff brought to thier jobs was a wonder to behold. The knowledge and love of the Park they instilled on thousands of visitors, school groups and teachers is lost and will not be duplicated. As was thier recruitment of supporters for the Yellowstone Association. The professional 'guns' failed in thier efforts to raise funds and passion for Yellowstone. The frontline people of the Institute and the stores, with first hand knowledge and love of Wonderland generated the true support. Preservation occurs with the grassroot committment of the informed masses.
This is sad. As a teacher I attended a YF STEAM Institute last summer. It was one of the most amazing programs. It ranks in the top of summer travel programs and I have been on quite a few. The beauty and wildlife that we absorbed while I stayed in the Overlook Field camp will never be forgotten. I still sit in awe (and sometimes tears) remembering all the scenery and experiences.
Hello Mr. Ploughjogger! And to all other who may read this.
I can see by your comments that you know more than most, but I am a bit disinhearted by your quick dismissal of Caitlin's observations. I admit that I do not know you, and I would like to know you; but I do know Caitlin and I know that her opinion is strong and should not be easily dismissed as you so casualy seem to do in this forum. Please enlighten me if I am wrong! Personally or otherwise ([email protected])
I have been a proponent of education my whole life. I am the daughter of teachers, math and music, and was taught that education is paramount; I believe this still. I am a child of our modern political situaton, and therefore I still strongly believe that education (and science) is my and our most important tradition. Am I wrong? To me, this is not a case for finance to come into the equation. Money is a joke, I can spin fincancial details any way I want to make it look good. The more complicated (like YF) the easier it is to spin. Forget finance.
Education is the major reason I chose to work for Yellowstone Forever, and the Yellowstone Institute in 2019. This core belief of mine, that education is paramount, was upheld by the principles I saw with this group of educators I joined. The passion was palpable. It is now disbanded and will not be easily reobtained. I understand that the institue was a drain on finances every spring. Training. Equipment. Insurance. Wages. I'm certain that I do not understand all of it. All that regardless, there was many people who could have stepped in during this time or crisis (and still can) with little training and using equipent already obtained, therefore with little monetary output and plenty to gain. I, personnaly, could have easily worked part time to conduct tours in the park with no further training. I am still be happy to do so for Yellowstone Forever. My passion for this park will look past this incredible mistep. The institute would still be a money maker for Yellowstone Forver both in revenue recieved and in the donations we would have promoted for them. All at no cost but wages for the day, insurance, and gas. Am I missing something? Why can we not do this? Why must we suspend the institute? Please tell me why. I want to know.
As a side note, I fully understand your explanation of YF's financials, it still does not support their position. You appear to be telling us all that we should wait to act till we understand the details. I disagree. The current board needs to get that education is PARAMOUNT to YF's core mission and must NOT be suspended, period. Education IS what YF is about to me.
As a side note, I had a contract to work for YF this summer. Last communication I had from them said my contract was suspended till June 30th. I still have had no further communication as to my contract's status. I am just assuming that I have no job now; I was notified of this via facebook from my friends. I'm still waiting for info from YF itself.
Today, June 8th, 2020, I just found out about Yellowstone Forever being dissolved. I was in disbelief and feel very sad. I've worked ten summer seasons between the years 2005 and 20017 as a front desk agent in several locations in Yellowstone. During training every season, before the merger, a rep from the Yellowstone foundation gave a presentation about projects and studies that were on-going and completed. I was impressed with all that they were accomplishing and impressed with the money they brought in. Keeping the foundation and association separate seemed to work just fine.
After reading the above article, I was shocked at the amount of funds that were depleted in a few short years, and also shocked at a top level salary of $303,192.00. I am sorry to be rude, but what skills are worth that much? I have paid my $35 dues every summer to Yellowstone, but I am not going to support a cause where my money is going into the pockets of individuals to the tune of the above mentioned salery increases.
I do hope the comments about highly commercialized enterprizes in the park was written in "tongue and cheek" - it's easy to think that. DO NOT LET THIS HAPPEN!. Separate the two organizations as they once were and go back to GRASS ROOTS. Think "out of the box" and be creative in putting this mess back together.
I LOVE YELLOWSTONE AND IT MUST NOT CHANGE.
Jaxine Harris
June 8th 2020
Exorbitant salaries just as I thought... no more donations from me!
Who is Heather White to be so valuable to a non profit like YF? Yellowstone speaks for its self.
To contribute to to its understanding should be a privilege.
Perhaps this development was predictable. Not just because of mismanagement by the leadership at Yellowstone Forever. But becuase the business model for the Yellowstone Institute is outdated.
Here's what I mean: Today, far more people visit Yellowstone NP every year than when the Institute was established. So in a normal year the demand for programs today far exceeds what the Institute can provide. As a result, the Park Service has allowed private tour companies based in Jackson and Bozeman to operate inside Yellowstone and Grand Teton Parks. Those private companies employ talented tour guides who bring their clients to the parks in vans and know where to see wildlife. They provide the same kind of services as the Institute, directly competing with Yellowstone Forever.
In the past, the Institute had essentially no competition. Today, lots of private companies provide similar services. Yellowstone has historically outsourced lodging and other services to Xanterra et al. Why not interpretive servivces, too? Of course, the Park Service retains oversight over the operations of concessionaires like Xanterra. I suspect the average visitor wouldn't notice much difference.
It's time for Yellowstone Forever to rethink it's business model. The Yellowstone Foundation provided a much-needed source of private revenue to help the Park Service pay for essential infrastructure improvement projects, wildlife research, and other programs. Millions of dollars of corporate and charitable funds were handled by the Foundation. I'd suggest Sholly close the Institute and restore the Yellowstone Park Foundation to its former role helping raise private money for the Park. No other organization can do that as well!
I am broken hearted at the news that the Yellowstone Institute has been dissolved. I have attended, and even supported as a Volunteer Program Assistant, countless educational programs over the last 20 years.
I wrote this response on my Facebook page June 6, 2020 after reading Carolyn Harwood Bulin's open letter to Yellowstone National Park Superintendant Cam Sholly and after hearing about all the layoffs of the Yellowstone Institute staff that had been previously furloughed:
I attended my first field seminar at the Institute's campus at the historic and humble Lamar Buffalo Ranch in Lamar Valley of Yellowstone National Park back in June 2000. It was at the urging of my old friend, Elaine Anderson PhD, who I had assisted with field work and classes at the Denver Museum of Nature & Science. She traveled there annually to co-teach a class on Wolf Ecology with her respected friend and colleague, James Halfpenny, PhD.
I will always remember the morning I arrived at the Buffalo Ranch. Students were out front with binoculars and spotting scopes viewing an elk carcass that was being fed on by a huge grizzly bear who was competing with 12 wolves, numerous ravens, and a bald eagle. I had never seen a wolf before and at that moment I felt like I had died and gone to heaven.
I learned a tremendous amount about wolves in a few long exciting days going out on drives and hikes early morning and also in the evenings as well as lectures that rivaled graduate school. I earned 1 college credit in those 3 or 4 days and developed a reverence for this rustic field campus, the dedicated and knowledgeable instructors, and the hard working volunteers that helped with caring for the campus, driving buses and supporting the instructors.
I was so moved by my experience that I decided I would volunteer with this organization when I retired; however, I started volunteering in 2011 even before I retired. I was so drawn to it that I put 5000 miles on my car one year driving back and forth from Bozeman to the Lamar Buffalo Ranch almost every week working 3 days in Bozeman and volunteering 3-4 days per week at the ranch. I was so impressed by the organization that I seriously considered putting them in my will. I cannot say enough good things about what was then Yellowstone Association and I was very proud to be a part of them.
Things changed when Yellowstone Associated merged with Yellowstone Park foundation. Many of the volunteer positions were dissolved and I began to feel unappreciated. Many others voiced similar feelings. Previously we were regarded as valuable employees, but after the merger we didn't even get included in emails.
I volunteered only helping at the ranch occasionally and stopped donating any money to the new merged organization called Yellowstone Forever. I watched frivolous spending and hiring of countless high paid executives and a lawyer. In less than 3 years, the new Yellowstone Forever organization squandered millions of dollars. Previously Yellowstone Association had been able to donate a few million annually to the National Park Service and to Yellowstone National Park. I witnessed the departure of one good employee after another and I drew more and more sad and concerned.
And now the Yellowstone Institute has been dissolved by a Board of Directors who live in others states and appear to have no real connection to this park we cherish.
I will carry on the mission of Yellowstone Association, because it lives on in the hearts of all who worked and volunteered to make the Yellowstone Institute so meaningful to so many people.
Inspire. Educate. Preserve.