PBHA Fund Drive Nears $1 Million Goal

Following a period of financial troubles, the Phillips Brooks House Association (PBHA) announced yesterday that its projected $1 million endowment drive will probably be completed by December.

The completion of the three-year capital drive will mark the end of several years of financial setbacks for the student-run public service organization. The difficulties peaked last year when PBHA requested $18,000--its largest grant ever--from the Undergraduate Council, and had to cut back program budgets by 30 percent, according to former PBHA President Van L. Truong '89.

PBHA Treasurer Douglas W. Marx '90 said the completion of the endowment drive will provide PBHA with $50,000 in annual funding within two or three years, when all pledges are paid in full and the principal starts building interest. Marx said the greater financial independence will allow PBHA to concentrate on more new projects.

But Marx said that even when the endowment is complete, PBHA will still need grants from the council to fund nascent programs and rising staff costs. He said the endowment also would not completely cover PBHA's day-to-day expenses.

This year, with the endowment still in the works, PBHA will ask the council for about $12,000, two-thirds of last year's request, he said.

In addition, PBHA will continue to rely partially on private contributions.

Arnold S. Hiatt '48, chair of the board of the Stride Rite Corporation and a member of the Board of Overseers, has pledged a large sum to the endowment, according to Vice President Maria A. Salas '90. Stride Rite, based in Cambridge, has contributed to many PBHA programs in the past.

PBHA's financial difficulties began about ten years ago, when members began spending the principal of the group's endowment instead of simply the interest, according to Salas.

Eventually, she said, so much of the funds were drained that interest did not build fast enough to cover operating costs.

Although the financial peril did not destroy any programs entirely, the strain forced many committees to campaign almost exclusively on their own for funds. Marx said many of the larger committees raised up to 90 percent of their own operating costs last year.

Unamusing

Many programs also had to cut back on expenditures. For instance, the Boston Refugee Youth Enrichment Program, which teaches English to Cambodian and Vietnamese children, last year substituted a picnic for its annual visit to an amusement park, Truong said.

"Right now, we have a very bare-bones budget," Marx added.