This article is a summary of the August 15 emailing sent by the Shambhala Department of Finance to the global community of Shambhala members.
Finance Report to the Shambhala Community
By Ryan Watson, Director of Finance
With Susan Engel, Treasury Council Chair
Reviewed by the Kalapa Council and Treasury Council
As requested by the outgoing Kalapa Council, this report to the Shambhala community shares the current state of Shambhala’s finances and how we are organized, as well a sense of the challenges ahead. We have done our best to share the complexity of this information as transparently and clearly as possible, so it can be better understood by the community.
Click here to download a copy of this report.
Accompanying this report are financial statements and spreadsheets that further illuminate the financial picture. These statements are available to Shambhala members at this website.
Questions and comments from members are welcomed at [email protected]. These questions will be compiled and responded to in the coming weeks.
Summary
Shambhala’s organizational and financial structures have sustained our community for almost three generations of practitioners. While hard questions about the future are being asked, and organizational change may be required, we have a solid foundation and many resources to draw on.
- Shambhala in North America has net assets of $22.5 million USD and gross annual revenue of $18 million USD.
- Since late 2017, there have been steadily increasing cash flow challenges in Shambhala Global Services, the Sakyong Potrang, and other entities. This pattern has occurred with some regularity in Shambhala’s history. The outgoing Kalapa Council has initiated actions to address the current situation in the short term, with the intention to leave the incoming Interim Board as stable a financial situation as possible. Further changes are likely to be required in the coming months.
- The Sakyong and his teaching have played a critical role in overall revenue generation for Shambhala. The financial impact of his current step back from teaching is not yet fully known.
- In 2017, no Shambhala funds were used to pay compensation for the Sakyong or Sakyong Wangmo or lineage or parsonage expenses. These expenses are currently funded by direct donations to the Sakyong Potrang entities.
- The financial health of Shambhala Global Services is fully dependent on Unified Giving transfers and donations from Shambhala Centres and members.
- Elevated debt levels and low cash balances in Shambhala Global Services and the Sakyong Potrang are prompting consideration of asset sales as one option to build financial stability going forward.