The Foundation’s Campaign for Erdenheim Farm has been extremely successful to date, raising over $27,000,000 to cover the acquisition and transaction costs on the Angus and Sheep Tract properties. Now that the properties have been acquired and permanently preserved, the Foundation must address the ongoing stewardship costs to maintain the properties.
Initially, these stewardship obligations will be focused primarily on the Angus Tract. Under the agreement with the McCauslands, the Foundation will pay for the tract's upkeep, but the work will be carried out by the McCauslands. At a minimum, stewardship will encompass maintaining the buildings and fences, mowing the grass along the perimeter of the roadways, and keeping the fields and meadows mowed semi-annually. The cost for this maintenance, capital expenses, and administrative costs related to the property, is projected to be approximately $100,000 annually.
The Foundation's stewardship obligations with regard to the Sheep Tract will be covered by the McCauslands through a lease arrangement in which the McCauslands will maintain the property. For planning purposes, the Foundation assumes it will not incur stewardship expenses for the Sheep Tract until 2019, after the expiration of an initial 10-year term of the lease.
To properly maintain both properties, the Foundation projects that it will need $100,000 annually for the Angus Tract and $126,000 annually (calculating for inflation by 2019) for the Sheep Tract. This will require a total endowment of $5,000,000.
This endowment will be raised in two phases: Phase I will cover the immediate annual stewardship costs on the Angus Tract and Phase II will cover future stewardship costs on the Sheep Tract. The Foundation is seeking to raise $2.2 million in current gifts for Phase I of the endowment and $2.8 million in deferred gifts for Phase II of the endowment.
A lead gift of $650,000 was received from Nick and Athena Karabots in July 2009, providing a great start to Phase I of the Endowment Campgaign. We hope their support will inspire others to help us meet our goals.