It’s been seven years since the Wrangell Chamber of Commerce operated in the black. Each year since, it’s run a budget deficit covered by savings.
Declining membership renewals and falling revenues from other sources has left the organization struggling to operate, and its board is working to find funding solutions.
In 2016, the chamber’s revenues totaled $266,169 and its expenses were $205,502, producing $60,667 in income to add to savings. Since then, operating expenses have been higher than income, with the nonprofit in the red thousands of dollars each year through 2020, the most recent year that IRS tax filing information is available.
The accumulated losses have cut deeply into savings.
Decreased pull-tab sales and Fourth of July fundraising are the two biggest reasons for the struggles, stemming in great part from the effects of the COVID-19 shutdown in 2020.
Brittani Robbins, executive director of the chamber, said pull-tab sales are down 50% in the past couple of years.
In its 2021 filing with the state, the chamber reported about $85,000 in net income from pull-tabs and the Fourth of July fundraising raffle, after prizes and expenses. Most of the net income was from the Fourth raffle ticket sales.
Pull-tabs are used as fundraisers by Alaska nonprofits, selling for $1 apiece, with payouts generally anywhere from $1 to $500 for winning tickets, depending on the games.
After expenses and paying out prizes, the chamber makes 70% of what’s left from the sale of pull-tabs, whereas the sellers, Totem Bar, Rayme’s and the Marine, make 30%.
Aaron Powell, owner of the Totem Bar, said he used to sell pull-tabs for three nonprofits, including the chamber, but business is down since the pandemic.
“Business this winter is a lot slower than it was in the past, so it’s definitely a part of it,” he said. “The pull-tab guys are pretty regular. They’ll come in, have a beer and get pull-tabs, but business for the bar is slower.”
Powell said he hears from customers and other residents that they can’t spend as much as they used to and are dealing with tighter budgets. “Every day, some customers will mention the cost of freight going up.”
In another declining source of revenue for the chamber, membership renewals are running at only about 64%, Robbins said. “The community is struggling and so are our businesses,” she said. “We can’t change inflation or an economic recession.”
The chamber’s annual royalty contest raises funds to pay for the next year’s Fourth of July celebration. Last year’s fundraising raffle ticket sales totaled $56,260. The chamber needs about an additional $30,000 to cover costs associated with the event. In 2016, $126,408 was raised, the highest ever.
Fewer people are signing up to compete in the royalty contest by selling raffle tickets. Only one ran last year.
“Having one or two contestants doesn’t make for a strong fundraiser,” Robbins said.
To help compensate for the funding shortfall from 2022, the chamber is selling hoodies and other swag, and holding a raffle with a prize of $10,000. Tickets are $50 each.
Robbins said the lack of funds could mean a “change-up” in the chamber’s two employed positions and a scaled back fireworks display during the Fourth of July festivities.
“We’re going to see differences,” she said. “I don’t think we’re going to see anything huge. … We’re still planning on fireworks, hopefully. That’s our most expensive endeavor.”
Fireworks have averaged $9,000 to $12,000 in costs each year. The Wrangell Fire Department sets up and runs the display, and Fire Chief Tim Buness said the department still plans on doing the same this year.
At its board meeting last week, the chamber scheduled a work session meeting for 2 p.m. Friday in the Stikine Inn, next to the chamber office to the left and down the hall from the front desk. The board will discuss ways to raise additional funds, including asking businesses to sponsor different Fourth events. Robbins said the public is encouraged to attend to give input.
“I’m not big on the idea of failure,” Robbins said.
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