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BUILDING AND

ENDOWMENT
CAPITAL CAMPAIGN
HIGHLAND COUNTY HISTORICAL SOCIETY

LOOKING TOWARD THE FUTURE


During 2014, the Highland County Historical
Society Board of Trustees created and authorized the development of
a capital campaign for
the Society that included:
1. the needed construction and upgrades for Highland
House and Scott
House
2. the creation of a
Building and
Grounds Fund to
manage the maintenance and upkeep
for all of the Societys properties
3. the creation of an
Endowment Fund
for the Society.

Members of this group


were chosen not only
from the Board of Trustees and Officers, but
also from the general
membership.
WHY?
Why is a Capital Campaign needed? Why an
Endowment Fund? During the life of HCHS, our
museum building, High-

land House, has aged an


additional fifty years! The
oldest portion of the
structure was completed
in 1844. Highland House,
celebrated its 170th
birthday in 2014. The
addition, the newer portion of the structure in
which the Pioneer Hallway, Museum Shop and
Meeting Room are located, was added later.
The foundation created
for that portion has begun to fail, leading to the
beginning of failure of
the back wall. (more on
this major need later in
this brochure)
Our second structure,
the Log Cabin, is in good
condition. Minor repair is
needed to some of the
chinking, but all other
features of the structure
are in good repair.
Scott House, our third
and most recently acquired structure, is in
need of upgrades to the
facility to make it more
attractive to renters. The
outside trim is in need of
major repair work.
This brief synopsis of the
state of repair on our
holdings makes it clear
that provisions must be
made not only for current and pressing needs,
but also to begin looking
forward to providing the
next generation the

means to continue maintaining holdings in order


to preserve and protect
the history of Hillsboro
and Highland County. If
every need, such as a
major failure to heating/
air conditioning or a major structural problem, as
it arises, results in a
knee-jerk reaction and
becomes a crisis situation, we would have to
continually pass the
hat and beg for funds
to meet these crises.
It has been said that

He who fails to
plan, plans to fail
and there is a lot of truth
in this statement. We
find that in planning for
our future by venturing
into a Capital Campaign
and the creation of an
Endowment Fund, we
are putting into place the
means to handle crises
as they may arise.

We entertained visitors
from many states
throughout the 2014 tourist season. We also entertained first-time visitors
from within a stones
throw of Highland House.
In all, well over 1,600 people visited us this year.
Comments from our visitors have been very positive. One gentleman,
from Bainbridge, just
commented recently that
we were his favorite museum, that we display
things that people want
to see.
HCHS is doing a great job
of preserving and displaying our local history in an
engaging and interesting
manner. It is always nice
to get an attaboy from
visitors. But we cannot
rest on our laurels and
past accomplishments.
We must continue to
grow and seek out new
(continued on page 2) .

BUILDING AND ENDOWMENT


CAPITAL CAMPAIGN

LOOKING TOWARD THE FUTURE (continued from page 1)


and creative ways to find,
collect and share local history.

The greatest
thing this
generation can
do is lay a few
stepping stones
for the next
generation.
-Charles F. Kettering

The societys future lies with


the youth of the county. If
we can continue to host
them, educate them and
excite them about local history, then we have even
more assurance that tomorrows leaders of HCHS are
being formed.
ENDOWMENT FUND
Exactly what is an endowment fund? An endowment is defined as funds or
property donated to an institution, individual or group as
a source of income. In other
words, funds endowed are
monies that cannot be
spentthey are donated as
a source of income. Funds
are typically invested and
only the income and growth

from those funds can be


used for the operations or
other needs of the group.
This ensures that the body
of funds remains in place
in perpetuity.
By the creation of an Endowment
Fund, we are
assuring that
there will always be income for the
Society.
OPERATIONS &
PROGRAMMING
The day to day operations of
a museum and historic structures require a significant
amount of funds. Utilities,
security, maintenance, general upkeep and cleaning are
but a few of the items which
take money. We have a di-

Just whats wrong with the back wall?


The current meeting room and the Pioneer Hall as well as the areas above
them on the second floor, were added to the building in the late 1800s. The
foundation has begun to fail, resulting in the wall over that foundation also
failing. After assessing the deterioration and consulting with contractors
who are qualified and experienced in this level of historic preservation, the
following measures are what is needed:
1. Remove the south wall from foundation to roof line and preserve the
bricks;
2. Secure the exposed section from weather and unauthorized entry;
3. Construct a new foundation;
4. Construct a new structure to secure the outer wall to the rest of the
building;
5. Reconstruct the outer wall from the cleaned original bricks to maintain
visual and historical integrity.
The bids for this work are in the $70,000 range (depending upon any problems encountered during the work). In accordance with the By-Laws of the
Society, this expenditure was presented, voted on and passed by the General Membership of the Society.

rector who is paid for her


services. This past summer
we had interns from Miami
University who performed
many duties
without
pay, however, we
reimbursed
expenses
for their
travel to
and from
Hillsboro as
well as paid
for their meals. We belong
to organizations appropriate
for museums of our type.
Good stewardship of funds
is utmost in our minds. Written into our bylaws are safeguards concerning expenditures-i.e., who is able to
spend funds of differing levels as well as oversight of
these expenditures.
What are our current forms
of income? We do not
charge admission to our museum, but rather depend on
donations of those visiting.
Currently we rely on the income of our investments,
but occasionally have to dip
into the principal of our investments, which, in turn,
lowers the earnings. Earlier
in the year, we made a commitment to increase the viability of our MUSEUM
SHOP and bring it up to a
higher standard and become
the g0-to place for books
and other material related to
local history. Our director
attends meetings at the
state level and is always on
the outlook for grants and
other funding possibilities.

Page 3

THE BUDGET-2014
The first full year under the reorganized board is nearing an end. Basing the
budget on the best available information, the board adopted a working document from which to grow. So, how are we doing?

Account
Income:
Dues/Memb.
Donations
Memorials
Investment Inc.
Sales Tax Rcv'd
Special Event Inc.
Museum Shop Sales
Sales (Book, etc)
Room Rental
Office Rental
Fundraisers
Miscellaneous
Bank Interest
Refund
Inheritance Gifts
Total Income
Expenses:
Employee salary
Employee costs
Postage and Comm.
Utilities - museum
Utilities - S. House
Insurance
Program expense
Event expense
Museum / Display
Supplies
Repair / Maint. (SH)
Repair / Maint. (HH)
Renovation
Merchandise costs
License and fees
Dues
Investment Fees
Sales Tax paid
Service Fees
Total Expenses

Budget

Yr. To date

% of Bgt.

$ 5,000.00
$ 2,500.00
$ 1,000.00
$ 16,000.00
$
500.00
$ 1,200.00
$ 2,000.00
$
250.00
$
750.00
$ 5,000.00
$
$
100.00
$
30.00
$ 2,000.00

$ 8083.57
$ 2,723.00
$
920.00
$ 10,949.95
$
$ 4,667.30
8216.67
$
127.00
$
105.00
$ 3100.00
$
35.00
$
2.33
$ 21.63
$ 1996.14
$ 7,870.28
$ 48,817.87

162%
109%
92%
68%
0%
389%
411%
51%
14%
62%
#DIV/0!
2%

$ 36,330.00

$
$
$
$
$
$

6,000.00
600.00
1,500.00
4,300.00
4,200.00
5,533.00
$
$
500.00
$
$ 2,400.00

$ 5,000.00
$
600.00
$
150.00
$
200.00
$ 3,000.00
$
500.00
$
500.00
$ 34,983.00

$ 7,049.42
$
870.42
$
1488.39
$ 8270.92
$ 4,473.69
$ 6145.00
$
65.65
$ 2,303.83
$
20.37
$ 1,775.79
$ 1930.25
$
689.40
$
$
1,581.78
$
334.00
$
475.00
$
$
280.39
$ 1,527.91
$ 40,040.22

The chart to the left shows the budget


amount (for a full year) and the year-todate, which is as of 30 Nov. Income realized
by this date represents 134% of the budget.
Our primary dues collecting months as well
as primary months for income from the Museum Shop are November and December, so
our income for the year should see a significant increase.
Expenses for the remainder of the year
should not show any significant change
from the rate for the first eleven months, so
we predict that income will continue to exceed expenses for this period.
That being said, the amount of income
over expenses, while admirable, certainly is
not of the amount on which to begin to
build a tomorrow. To accomplish the level of
security we need, we must raise the capital
we will need not only for the back wall restoration, but also to meet any unexpected
emergencies and to have a stable income
for day-to-day operations.

#DIV/0!
134% CALL TO ACTION

117%
145%
99%
192%
107%
111%
#DIV/0!
#DIV/0!
74%
14%
#DIV/0!
264%
223%
238%
0%
56%
306%
114%

In order to meet the needs outlined in this


brochure, we are contacting local businesses, community leaders and our membership who have always had a heart not
only for Highland County Historical Society,
but also for the preservation and dissemination of local history.
Highland County Historical Society turns
FIFTY YEARS old in 2015. This seemed like an
excellent time to bring all of our work together and build for the future.

SOCIETY
OF
ANGELS

Highland County Historical Society was founded in 1965 out of the passion of many local folks who gave their time, their expertise and their
money. Then they went to their friends and convinced them to join in.
Throughout the years, as those founders left our sides, we found that
many of them had remembered Highland County Historical Society in their
final arrangements.
The HCHS collections grew steadily since our founding in 1965. Through
the thoughtful decisions of men and women who cherished our history,
the society has preserved our material culture, and created a place where
future generations could enjoy their heritage.
With increased costs of heating and cooling and other utilities, insurance, services such as cleaning and lawn care, we sometimes have trouble making the income match the expenditures. With the addition of Scott House to HCHS holdings, the stress
on our funds, until that building can become self sufficient through office rental , has become overwhelming. When unanticipated expenses pop up, too often we must go to the principle of our investments, thus reducing our yearly income.
Planned giving offers donors flexibility and creativity. Unlike annual gifts that are made from current income, planned gifts
are usually made from capital assets that, in addition to cash, could include appreciated securities, life insurance, retirement
plans, and real estate. Planned giving may also enable donors to give generously while helping to preserve financial security,
provide for a loved one, reduce estate and income taxes, avoid capital gains taxes, and/or increase income from low-yielding
securities.
We have formed the SOCIETY OF ANGELS to recognize individuals who have chosen to leave a planned gift for Highland
County Historical Society. As a member of the Society of Angels, the commitment of a donor serves as a foundation for the
future for Highland County Historical Society. The angels support allows us to climb higher, strive further, and reach for our
creative historical preservation ideals.
The SOCIETY OF ANGELS was formed to recognize individuals who have chosen to leave a planned gift for HCHS. The Society of Angels members are distinguished men and women committed to the continued excellence of historic preservation,
which can only be achieved through private financial support and the building of the endowment fund. Highland County Historical Society receives no government funding.
The Society of Angels seeks to:
Increase the level of support from friends of HCHS
Provide a unique framework within which planned gifts can be made and recognized
Stimulate interest and involvement in the future of HCHS
There are a variety of planned giving options to help you and your advisors realize your philanthropic goals while balancing
your financial concerns. Some of the most popular planned gifts are:
Bequests
Including HCHS in your will is easy, and should your circumstances change, it is also revocable. You may choose to designate
HCHS as a remainder beneficiary, or the recipient of a specific dollar amount, item, or percentage of your estate.
Appreciated Securities
Donating publicly traded securities that have appreciated in value over the long term (at least 12 months) can benefit both
you and HCHS. In most cases, you avoid capital gains taxes and are able to receive an income tax deduction for the market
value of the securities on the date of the gift.
Trusts
For those looking to make larger gifts while realizing income and/or estate tax savings, trusts may be an option for you.
Life Insurance and IRA Plans
You may designate HCHS as a beneficiary of a life insurance policy or IRA.
You should visit with your attorney or financial advisor to decide the best option for you and your situation. If you have already included HCHS in your estate plans, please let us know. We would like to thank you for your generous intent and, if you
are willing, to welcome you into the Society of Angels.
For more information on how to become a Society of Angels member by making arrangements for a planned gift to benefit
Highland County Historical Society, please call Highland House at 937.393.3392.
This brochure is not meant as legal nor financial advise. Individuals have individual needs and you should speak with your attorney or financial advisor before making any decision regarding gifts.