New disclosure shows Greater Louisville Inc. ran deficit - WDRB 41 Louisville News

New disclosure shows Greater Louisville Inc. ran $890,000 deficit in 2012

Posted: Updated:

LOUISVILLE, Ky. (WDRB) - Greater Louisville Inc., the metro chamber of commerce, spent $890,364 more than it took in during 2012 as membership dues and other forms of revenue dried up.

It was the largest deficit the chamber had run in at least five years, according to federally required financial disclosures.

GLI made its 2012 financial disclosure available Friday, the deadline for nonprofits to file such forms with the IRS. Once filed, the forms become public information. GLI's financial disclosure covering 2013 won't have to be filed until Nov. 15, 2014.

The latest form shows GLI's revenue declined from $8.4 million in 2011 to $7.6 million in 2012. The organization took in $4.8 million in contributions and grants (including membership dues) in 2012, down from $5.5 million in 2011.

GLI's precarious financial position was evident in September when Craig Richard, who took over as CEO in early 2013, laid off several senior staff members.

GLI spokeswoman Susan Overton said the finances of GLI's companion foundation, the Greater Louisville Inc. Foundation, must be factored in when evaluating the organization's overall financial health.

The Foundation took in about $1 million and had a $533,000 surplus in 2012, according to its disclosure.

Overton said in a statement: "GLF serves as a vehicle to allow the acceptance of grants from certain foundations and provides for the distribution of the funds as specified in the grant.  The expenses for these grant projects are reflected in GLI.  The funds for the grant are received through GLF.  An example would be the expenses for our work on the 55,000 Degrees and Degrees At Work programs, which are reflected in GLI financial results.  The grant funds are reflected in GLF."

The forms filed Friday cover the gap year between the departure of former GLI CEO Joe Reagan, who left at the end of 2011 to lead the St. Louis chamber, and the arrival of Richard, who had been the No. 2 officer at the chamber in Houston. Therefore, neither Richard nor Reagan's compensation is included in the new disclosure.

Even as the chamber's financial situation worsened, two of its highest-ranking officers received significant pay raises from 2011 to 2012, according to a review of disclosures by

Eileen Pickett, the chamber's former vice president of economic development, received $185,098 in total compensation from GLI and related organizations in 2012, up from $154,281 in 2011. (Pickett had been paid $172,318 in 2009 before receiving a significant cut in 2010 and 2011.)

Tracee Troutt, the chamber's former chief administrative officer, received $184,191 in 2012, up from $151,627 in 2011. (Troutt had also taken a significant pay cut from 2009 to 2010.)

Pickett left earlier this year to start her own consulting practice, while Troutt was laid off in the September downsizing.

In a first, GLI listed its main contributors in the 2012 filing, apparently because of new reporting rules. The filing appears to list every business or organization with more than $5,000 in cash or in-kind contributions to the chamber in 2012.

The biggest supporters were: KentuckyOne Health ($166,000); LG&E ($131,250); Brown-Forman Corp. ($105,000); Chase ($100,000) and PNC ($100,000).

Copyright 2013 WDRB News. All rights reserved.

Powered by Frankly
All content © Copyright 2000 - 2018 WDRB. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.