September 16 2009

I spent a day in Telluride talking about science non-profits in Colorado. The meetings were organized by Nana Naisbitt (Executive Director of the Telluride Science Research Center- TSRC) and Sonchia Jilek (ED of the Pinhead Institute). It’s a good opportunity to catch up what similar non-profits are doing and it also helps to provide perspective; while it’s easy to assume that many of the challenges we face are unique to our situation, the reality is that many of our challenges are just part of running a science non-profit.

TSRC holds conferences. They are organized as a non-profit with a board that consists solely of scientists. TSCR’s rate structure is set by their Board and it is kept very low, about half of what similar organization’s charge. Why would the scientists who set the rates want to pay anything but the bare minimum?

I’ve learned a few things about rates. Lower rates are not critical for participation. For example, RMBL has struggled for decades to keep up enrollment in our education program. In 2008 we charged 50% less than the lowest rate at a competing institution. This year we raised our fees 40% and focused on independent research. Enrollment shot up. Designing a program that fit student’s needs was more critical than keeping rates low.

RMBL has kept rates low by mining its buildings. We use revenue to support operations but haven’t kept up our physical infrastructure. Not only does that mortgage our future, but it is inefficient. Raising rates, but giving some of it back in the form of financial aid, will allow the Lab to provide greater support for individuals and projects that are central to our mission.

Keeping rates low is seductively easy. Keystone has a rate structure that follows from a financial model that is realistic and maximizes their institutional impact. Having a development office means that RMBL can maintain our physical plant while keeping rates reasonable. However, that doesn’t mean that we can be lazy and avoid thinking about rates. Our rate structure must serve the institution.