Page 6 - annual-report-2019

RePoRT fRoM The TReAsuReR (2019)
George L.K. Frelinghuysen

I am pleased to report that the New York Society Library’s overall financial Operating expenses were largely unchanged in 2019 from the year before.
condition remains strong, bolstered by the performance of its endowment Staff expenses, which represent two-thirds of total costs, rose only
in 2019 and by the continued support of its members, as well as by an on- marginally, as a lower than anticipated expenditure for health insurance
going focus on expense control. For the year ending December 31, 2019, partially offset increase in salaries. Outlays for e-books increased 10%
the Library recorded an operating surplus before depreciation of $141,811. over the prior year to meet higher member demand, but were in line with
On the revenue side, several brief comments are in order. Subscription budget. Computer systems expense rose 26% over 2018 due to a one-time
revenue declined 4.4% compared to 2018. A portion of the negative charge to migrate to the latest Integrated Library System software, which
variance was the result of the Library’s decision to encourage members incorporates the most up-to-date security. HVAC expenses were higher
with January 2019 expiration dates to renew in December of 2018 to take than planned, as two new compressors were installed to service the
advantage of lower dues. In addition, there was an unfavorable shift in Members’ Room and Stack 10. Finally, the hiring of a building superinten-
membership categories, which negatively impacted subscription revenues. dent resulted in savings for contract cleaning of approximately 18%
The number of members continues to grow modestly, to 2,957 at the end compared to 2018.
of 2019 from 2,937 at the close of the prior year. The endowment continues to provide the largest source of support for
the Library’s operations, covering approximately 54% of our operating
Regarding the annual appeal, the Library raised $686,640, which marked
a decline of 20% from 2018. The difference was attributable to a number of expense in 2019. The strong performance of financial markets during the
factors, such as the absence of several large gifts received in 2018 but not year was beneficial to the growth of our investments. At the end of 2019,
in 2019, as well as funds from a foundation for which we could not apply in the value of the endowment was $41.3 million, up 22% from the $33.8
2019. A total of 650 donors gave unrestricted gifts, below the total for 2018. million reported at the close of 2018. Last year’s positive results confirm
The top three categories represented 70% of all unrestricted funds raised, our belief that the different styles of the Library’s managers will continue
compared to 68% in the previous year. In 2019, the Library also received to yield superior investment results. I would like to end by noting that
$650,283 in restricted gifts, running the gamut from monies to establish our spending policy for the endowment is 4.75% of the endowment’s
a new book fund to a significant contribution to jump-start the Library’s fair-market value averaged over 12 quarters. Looked at another way, if
efforts to raise funds for its proposed renovation. The Board would like to we divide our allocation for 2019 by the endowment’s market value at
express our gratitude to all the membership for your continued generous the end of last year, our draw was 3.9%. By not heavily taxing our
support of the Library. endowment, as these number show, the Library is guaranteeing its
long-term future.
Respectfully submitted on April 28, 2020
George L.K. Frelinghuysen, Treasurer