Founders Club

We estimate the total fundraising requirements through opening of the JFK Maritime Museum in Miami or Fort Lauderdale, Florida at $50 million for full execution of the business plan, including all construction and pre-opening requirements.  In the meantime, we have projected the five-year Operations Budget for the 501(c)(3)’s day-to-day business activities at $12.5 million ($2.5 million per year on average).

Founders Club:

Founders Club Members enjoy all of the same member-benefits as those who make a pure cash donation of $250,000 – with the added twist that their “contribution” may well cost them nothing.  Here’s how:

To fund the Operations Budget, the Foundation has borrowed from the successful strategy employed by the Midway Magic Foundation in connection with its acquisition of the USS Midway as the San Diego Aircraft Carrier Museum.  Its board of directors Chairman, Malin Burnham, created the “Founders Club” concept as a means to facilitate his organization’s financial requirements.  In honor of those who took the earliest and greatest risk, a Memorial to the Founder, the Founding Sponsor, the Founders Club, and all other significant contributor-levels will be celebrated forever in the form of a permanent display at the visitor entrance to the John F. Kennedy Maritime Museum (as in this example aboard the USS Midway):

The USS Midway (San Diego Aircraft Carrier Museum) “Wall Of Honor”

The USS Midway (San Diego Aircraft Carrier Museum) “Wall Of Honor”

Whereas “The Midway” designated separate categories for “Plank Owners” and “Founders” – we have combined these categories into a “Founders Club.”  Each member will receive a “plank” designating their “Plank Owner / Founders Club” status.

SDACM CEO Mac McLaughlin addresses Founders and Plank Owners

The $12.5 Million Credit Facility Structure:

In a format similar to that employed by the Midway Magic Foundation, the JFK CV-67 Memorial Foundation plans to use a credit facility which resembles a construction loan, providing for monthly draw-downs in order to complete the project.  The credit facility will convert to a secured, structured repayment loan upon the opening and operation of the USS John F. Kennedy Maritime Museum.

Funding of the credit facility will occur as supporters sign their name as security for each increment of the total note.  These signatories primarily represent individuals whose personal financial strength would suffice to the bank as “collateral” against the credit line.  Following the Midway’s example, we plan to value each signatory increment at $250,000.  Founders Club member’s names will move “up” the list commensurate with the number of increments for which they assume the financial risk.  The credit facility will be drawn down as needed on a quarterly basis to fund the general operations of the JFK CV-67 Memorial Foundation – at a pace not to exceed 30% of the then-available secured credit line.

The JFK CV-67 Board of Directors’ obligation is to restrict use of funds to ensure that the Foundation’s pace of spending does not exceed its ability to recruit new Founders Club Members (thereby spreading the risk among additional Founders).  The Foundation will adhere to the agreed upon budget tied to a business plan that envisions significantly increased annual operational expenses as it approaches the acquisition of the vessel and prepares to launch it as a museum.

Upsides To This Approach:

While the apparent incremental risk per donor pledge is $250,000, the actual exposure will be a proportional share of the funds actually distributed.  As planned, if the Foundation succeeds in its goal and opens the museum, the note will convert to a term loan to be paid from museum operating revenues, relieving Founders Club members of all financial exposure.  Even so, the Founders Club members will enjoy, in addition to numerous other benefits, lifetime, most-honored status on the Founders Club commemorative display prominently situated upon entry to the ship/museum.

Downside Risks To Founders Club Members:

If the Foundation has drawn down funds from the credit facility, but either it fails to secure an acceptable location, or the Secretary of Navy declines to donate the ship, the Foundation’s Board will have to determine whether it is in its best interest to abandon fully its plan.  Under this eventuality, each signatory’s financial exposure will equal its proportional share of the commitment.  The total exposure will include amounts already drawn, and funds sufficient for “shut-down” expenses including liabilities such as lease commitments and penalties.  When the bank calls the note, each increment-holder will be responsible for his or her portion of the money actually spent by the Foundation in its efforts.  Depending on the timing, a significant portion, or even all, of the $12.5 million may have been exhausted.  Under this worst-case scenario, Founders Club members would be required to fund most or all of their guarantees.

Contact us regarding the Founders Club

Corporate Sponsorship & Other Sources Of Capital:

In addition to the operational funds anticipated through the credit facility, the Foundation anticipates the following sources of funds required for project completion:

NOTHING CONTAINED ON THIS PAGE SHOULD BE CONSIDERED A SOLICITATION OR PROPOSAL IN CONNECTION WITH A SPECIFIC FINANCIAL DOCUMENT OR LOAN FACILITY.  PLEASE CONSULT WITH YOUR FINANCIAL AND LEGAL ADVISORS TO DETERMINE YOUR FINANCIAL RISKS AND/OR BENEFITS ARISING FROM ANY SPECIFIC COMMITMENT.  THE JFK CV-67 MEMORIAL FOUNDATION MAKES NO REPRESENTATIONS REGARDING FINANCIAL RISKS OR THE TAX IMPLICATIONS ARISING FROM PARTICIPATION IN THE ANTICIPATED CREDIT FACILITY.