So, Where Did All the Members/Money Go?
By NM Leland Fuerstman

For those of you who are curious about the status of our state chess organization, I share the following quote from 3-1-16, Message 608, "NCCA Criticism Warranted." This paragraph alludes to the profit which had just been generated after conducting the Scholastic Championship. As usual, there was no published accounting available for anyone to observe.

Approximately 10 years ago, after an implosion, control of the NCCA was seized by Legal Adviser, A. Wilder Wadford, who continues to do so to this day. He has since manipulated all of the elections in order to maintain iron clad control. He is the same organizer of the Land of the Sky who pays back 60%. (Good from a businessman's point of view, but not so good for North Carolina chess players who pay increasingly higher entry fees for such a small percentage of return).


I go on to write: "A complete published independent accounting of all revenues associated with this $40,000+ event (the Scholastic Championship) would answer all questions." Unfortunately, no accounting of that event was ever published.

"Now, let's give them the benefit of a doubt and assume that the NCCA just put $40,000 in their bank account. According to most recent figures, that would increase their balance to over $65,000! And, just exactly what do they intend to do with all of that money? The fact is, no programs have been designed nor initiated to bring new chess players into our sport, nor have they supported our "top players" by sending them to tournaments around the country in order to qualify for norms, nor did they even conduct the Invitational? Nor, do they provide membership to indigent folks who can't otherwise afford it but want to play rated chess. So, just exactly how have they "spent" the money over the past few years? Inquiring minds want to know..."

L
ast year, after the NCCA conducted the Scholastic Championship, it was "estimated," based upon their own previous financial disclosures, that they had over $65,000 in their treasury. This year, after a record turnout of some 850, with some scholastic players paying entry fees of as much as $69, it was "estimated" that they generated another $35-40 thousand in profit! Therefore, there should be as much as $100,000 in the NCCA treasury! Wow! - So, I attempted to try to verify that amount.

Surprisingly, during a recent phone conversation with newly appointed NCCA Secretary/Treasurer Wayne Spon, (after Sara Walsh unceremoniously resigned for unknown reasons) he stated that there was "approximately" $30,000 in the treasury combined with a CD and other escrow deposits; for a total of about $40,000?! Gosh, that's only a $60,000 discrepancy. --- However, he went on to say that he didn't have exact figures because there were still receipts from the event in April which had not been included, to which I responded, "well, it's June!" He also talked about the expenses associated with the all important "Girls Invitational" and "delays in billing because Thad Rogers has cancer?!?" (What? I saw Thad last weekend selling books and making money, as usual... he looked O.K. to me) I then inquired as to whether there was any written or published "financial report" of the scholastic event? This seemed to anger Mr. Spon who promptly accused me of criticizing his job performance, and hung up in my face?! Recalling the idea that incompetent people resent being exposed, this is par for the course. He's just the next "wanna be" in a long line of unqualified appointees who readily accept positions, but end up doing little, or nothing.


Instead of NCCA President Kevin Hyde informing the members (...yeah, all 19 of em') of the vacancy and seeking a replacement with accounting experience, or at least a basic understanding of simple math, you have the knee jerk appointment of yet another inexperienced volunteer who was recently "challenged" for incorrectly figuring the cash payout at a tournament. Despite his incomplete accounting records and approximated guesses, there are other responsibilities associated with being the Secretary/Treasurer which he seems to have ignored. Take a peek at their outdated and convoluted "Current NCCA Membership Roster." You have the choice of 3 different formats? (why not just post the list in HTML when you open the link? Who needs a giant spreadsheet for so few names?!) The database states there are "272 current members??" More than just a slight exaggeration here since, upon closer inspection, the NCCA currently lists only 15 paid regular members and 4 active Life Members for a total of 19? (Click here to observe the names of current members). Their "current" membership list includes some who expired almost 4 years ago? The last 3 Secretary/Treasurers have completely neglected that list. Apparently, the new Sec/Treas. didn't give it much notice either, or doesn't care. Nor does he seem to care much about collecting NCCA dues by discussing the issue on their website or showing up at tournament registrations in order to do so. If this is not the Secretary/Treasurer's responsibility, then, whose is it?

When I was President of the NCCA (320 members strong!!) in 1984-85, because I was a Senior TD, I accepted the task of organizing and directing the State Championship for absolutely (against my wife's wishes) no personal profit. (I believe that past Sec/Treasurer Ken Baxter, Accountant, can attest to that as well as the fact that we paid out over 95% of entries received!). However, as the years have gone by, our leaders don't seem to be quite as benevolent as I once was. NC chess politics have allowed the system to morph, or degenerate, into a situation where past President's were "farming out" major tournaments to their own "chess companies!" This unscrupulous policy allowed them to pocket the bulk of the profits and share little of it with the NCCA. For quite some time, the NCCA coffers were lean. The corruption and cronyism are the main reasons why I relinquished my Life Membership in 2010.

In the mean time, NMLF continued to be the lone voice of decent over issues like charging extremely high entry fees for scholastic events and paying back only a minute percentage of the take? For example, this year's Scholastic Championship was won by previous CCC member NM Emmanuel Carter (2250). For his extraordinary efforts, he was awarded a $1,600 scholarship for college tuition??? FYI the annual tuition for Princeton University is $61,160! UNC is one of the least expensive in the country at $24,630 per year. The real problem is, when these NCCA policies were implemented, the first few scholastic events drew less than 100 players. Yet, as time has gone on, entry fees have skyrocketed and the numbers have octupled but the payout has stayed the same? Correction, after I openly complained about it 3 years ago, they changed the payout from $3,000 to $5,000. How generous??! Look, it was estimated by "competent calculators," that after all expenses, their event made a profit of as much as $40,000 this year! Yet, Carter only gets $1,600? But, he must wait until he enrolls into college before he actually receives that?

Yet, they have not published any accounting of these high dollar events in years? I was under the impression that the NCCA was a non-profit organization which is naturally bound by legal accounting responsibilities. Regardless, the cabal never disclose how their chess revenue is spent or distributed. Some North Carolina chess players believe that everyone has a right to know! Maybe it's about time that the NCCA is officially audited. Assuming that there are no improprieties, what do they have to hide? Maybe our "approximate" figures are not exactly precise, but they are close. However, in the absence of a complete financial report of the event, who will ever really know? And, the beat goes on.

Now, to answer the title of this message; "Where did all of the members/money go?" I refer to past President Rudy Abate who, in his wisdom, (or lack thereof) decided that everyone must renew his membership on January 1?? At that time, I believe that the NCCA still had over 100 members. Now, they have 19. Yet, the current incompetent administration has made no effort to reverse that ridiculous policy. -- As for where all of the money went, I have always believed that any revenues which are accumulated by the NCCA, whether through tournament promotions or donations or any other source should be used for North Carolina players, only. Right now, all the NCCA provides is an incomplete "Upcoming Event" clearinghouse which arbitrarily excludes organizations according to their prejudices. Therefore, since there is no evidence that they have spent the missing $60,000 on anything else, surely President Hyde can account for it all. But, as usual, I wouldn't hold my breath.

Finally, the entire mission of the NCCA is skewed. The organization was designed to represent the "adult" chess players of our state. Now, most of their efforts are spent on the Scholastic Championship and the Girls Invitational (where a 1500 player won the title last year?!) while the concerns of the adults are basically ignored. And, again, they have neglected the Annual Invitational Championship which is designed to celebrate our very best players favoring mediocrity over expertise. How pitiful. They really need to give up the ghost, since that's what it has become of itself, and allow competent people to take over the organization for the good of all North Carolina chess players.

I remain,
NM Leland Fuerstman