Their profit was 1% of revenue, so 5-6% for giving, isn't small potatoes.
The USGA is a not-for-profit, thus your logic of measuring it against profit percentage is extremely faulty. Take a long look at the organizational efficiencies achieved across all of their revenues and expenses and you'll see this is not an economically efficient organization. COGS is very, very high relative to obtained revenues. Post the United Way debacle of years past, not-for-profit management practices have come a long, long way to maximizing efficiencies and minimizing costs.
John:
No doubt the USGA should (and does) receive credit for supporting other efforts (Turfgrass research and Regional associations), but my argument centers on the institution's ability to expand the game and make it accessible and available to the youth of our nation (read: Future). To me, and it is only one mans opinion, that is infinitely more important than many other of the support functions they allocate to (inc. Turfgrass research, Communications, and Equipment Testing, and a $2.6MM net subsidy of Museum/Archives). I hardly think the $4.3M loss for Equipment testing is necessary as I imagine they could handily charge substantive fees to the manufacturers for testing service (but alas they don't...why???)
Please tell me why inner-city and rural youth (and yes those kids with different skin colors) don't have more sites dedicated to their use and education by the keepers of our sacred game? Why can't the USGA buy and maintain several old run down clubs that remain for sale in large MSA markets and put them to work as such sites? Why can't they find in-sport or out benefactors to donate their cash (in return for a very positive goodwill affiliation) to sponsor such purchases? Why isn't this a USGA goal? Simply giving First Tee some cash doesn't cut it by me.
I view putting more $$ into expanding and increasing access to the game as investing in the game's future and look at the building out of the infrastructure necessary to perpetuate the filling of the USGA coffers. That does not, however, seem to be much of a priority to the older, semi-inbred members of the Executive Committee and I wonder when will this organization make that quantum leap out of the past century and into the present one? Sorry for my rant, as I know you are a very decent guy who represents what's right about people involved in the game.
Bob:
In defense of the Far Hills Folly, this is an organization that easily could have been bankrupt a few years back(Ping Suit) and if not for Eric Gleacher's brilliant financial guidance at the time, would still be struggling to build any meaningful cushion. Of course, the first thing they did was throw Eric overboard as soon as they righted the ship (another great EC decision). Yes, they have a good deal of cash, but shy of having Walter Driver intelligently turning over the reserves over to his pals on Water Street, they'll need it given the relative level of collective financial intelligence at the top. I guess the only residual benefit they have to show for all this is an ultimate access junkie's open door at Augusta.