Revenue has been rising, but not fast enough

By Dan Frazier
Tea Party Editor

Since August of 2000, my wife and I have been publishing Flagstaff Tea Party out of our living room. For Lisa and I, this has been the greatest job we’ve ever had. Even though we have had to work 10 to 12 hour days, six and seven days a week, we love our work.

Unfortunately, much as we may love our work, and important as our work may be to our community, we cannot go on doing it month after month without a reasonable income. At some point we have to cut our losses, throw in the towel, and go on to the next chapter of our lives, whatever that may be. That day may come sooner than we had hoped.

From the beginning, FTP has struggled to make ends meet. We could never have started this venture without the enormous generosity of Flagstaff resident Chuck McDougal. McDougal has been instrumental in keeping FTP afloat despite ongoing revenue shortfalls. Recently however, McDougal unexpectedly decided to withhold his considerable financial support. Though normally I would not comment on a donor’s decision to withdraw support, McDougal’s decision involves some rather unusual circumstances, including his role as the founder of FTP. For the story behind McDougal's defection, click here.

McDougal’s defection may seem like the final nail in the coffin for FTP. After all, McDougal’s decision comes in the wake of the recent loss of two board members and two advisors following an especially controversial story.

But the situation may not be quite as dire as it appears. For one thing, we had no trouble filling the vacancies on our board, and may even be able to go from a five-member board to a seven-member board in the near future.

In some ways, FTP is as strong as it has ever been. Recently, we hired Crystal Chesshire, an experienced door-to-door canvasser. Working with a small crew of part-timers, she has added nearly a hundred new members to FTP’s roster in about the last three months. Crystal has also been helping us with our direct-mail campaigns, and hopes to start meeting soon with various local residents who potentially could be major donors to FTP.

Another hopeful sign is that FTP is about to publish its first book. Orders are already coming in for Growing Food in the Southwest Mountains, Lisa’s guide to high altitude gardening using the principles of permaculture. The book is sure to improve FTP’s cash flow, though it can hardly be expected to save us.

And while the rest of the economy has been in the doldrums, FTP advertising revenue has held steady, even increasing a bit over last year. However, advertising revenue is still well below where it needs to be. In an effort to increase revenue in this area, the board recently voted to relax some restrictions on who may advertise in FTP. We don’t expect to be flooded with ads from Wal-Mart and Home Depot, but don’t be surprised if you see a few new corporate logos in our pages starting next month (if there is a next month).

Regardless of who advertises, we are committed to remaining the bold and sometimes radical publication that you have come to expect. After all, Lisa and I have no interest in running just another newspaper; we’re here to change the world — or at least our corner of it.

So there are some bright spots in FTP’s otherwise gloomy financial picture. Nonetheless, without McDougal’s reliable support, we face the future with much more uncertainty. Now, only our credit cards stand between us and insolvency. At the rate things have been going, credit cards alone will not be enough to keep us afloat for long.

Lisa, who oversees the books, reports that FTP has been bringing in between $4,000 and $5,000 a month. This is at least $3,000 less than the $8,000 a month that would be needed to operate without losing money. With $8,000 a month, we could pay our tiny staff, pay our rent, buy groceries, afford basic supplies, and begin to pay down our credit card loans. However, even with $8,000 a month, we would not be able to pay ourselves all of the modest salaries previously approved by the FTP board ($1,600 a month per person). To pay ourselves fully, and hire enough help to allow us to spend a few hours a day away from our computers, would take at least $10,000 a month.

Unfortunately, we are not in a position to continue losing money while we wait for the revenue’s slow upward trend to catch up with expenses. If we are going to continue to publish FTP, we are going to need to see a strong and dramatic improvement in revenue soon. We will be making a decision on May 17 on whether or not to publish a June edition. If we do not publish a June edition, all donations over $20 that we have received since May 1 will be returned. And of course, we will return all money received for unpublished advertising.

If you have given money, or time, or just a few kind words of support, thank you. You have helped to nourish us, and through us, your community. You have helped to spread knowledge, and truth, and wisdom. You have lifted up the downtrodden, given voice to the voiceless, and stood up for the natural world. Flagstaff is a better place because of you.