During our Annual Membership Meeting in June 2026, the Board shared an overview of the Society’s current activities, accomplishments, and financial position. Our goal was to provide members with a transparent picture of the health of the Cactus & Succulent Society of America, Inc. (CSSA) and the opportunities ahead.

Overall, the CSSA remains in a strong financial position. As of our current financial statements, the CSSA has net assets of approximately $1.35 million. A question often raised is why such a significant portion of these assets—approximately $775,000—is invested in the Santa Barbara Foundation (SBF) Endowment Fund rather than being used for current operations.

This is an important question, and one every member deserves to understand.

What is the CSSA Endowment Fund?

Our endowment fund is not simply a savings account. It is a long-term investment strategy established to provide permanent operating support for CSSA’s mission.

Unlike regular operating funds, which pay for current expenses such as publications, grants, conventions, administration, and educational programs, endowment funds are invested for long-term growth. The principal is intended to remain invested while earnings generated by those investments provide an ongoing source of income for future operations.

In other words, the endowment exists to help ensure that the CSSA will continue serving members not only today, but for decades to come.

Why Was the Endowment Created?

The concept of a CSSA endowment was first developed in 2011 as part of a strategic planning initiative led by then President Gregg DeChirico. This proposal recognized that we faced changing membership trends, rising operating costs, and unexpected financial challenges. Rather than relying solely on annual dues and fundraising, the Society needed a permanent financial resource that could provide stability during both prosperous and difficult years.

Following that strategic planning effort, the CSSA Board established the Endowment Fund in partnership with the Santa Barbara Foundation in 2013. The Foundation was selected because it manages investment pools specifically for nonprofit organizations, providing professional investment management and access to diversified portfolios that smaller organizations could not efficiently manage on their own.

It is also important to understand how the Endowment Fund has been built. The Fund was initially established in January 2013 with a $75,000 transfer of Board-designated CSSA assets, creating the foundation for a permanent endowment. Since that time, the Fund has grown through donor-restricted contributions specifically designated for the Endowment Fund, together with investment earnings that have been reinvested to support its long-term growth. Following the initial Board-approved transfer that established the Endowment in 2013, no membership dues, convention proceeds, show and sale revenues, or other operating income have been deposited into the Endowment Fund. This distinction is important because the Endowment represents long-term capital that has been built through Board stewardship, donor-directed gifts, and investment growth, while operating revenues continue to fund CSSA’s day-to-day programs, publications, grants, events, and member services.

In addition to individual donor contributions, the Society has periodically encouraged endowment giving through special fundraising initiatives. In 2021, an anonymous member committed to match donations made to the CSSA Endowment Fund, dollar-for-dollar, up to $50,000 for gifts received by December 31, 2021. This matching gift campaign provided members with the opportunity to double the impact of their contributions while helping strengthen the Society’s long-term financial future.

Why Doesn’t the CSSA Simply Spend the Money?

The answer is simple: because the purpose of an endowment is to create permanent financial security.

The Board’s fiduciary responsibility is not only to support today’s programs but also to ensure that future members benefit from a financially healthy Society. Spending the principal of the endowment for routine operating expenses would reduce its ability to generate investment income in the future. Typically, most nonprofit organizations treat endowment principal as a permanent asset, preserving it while using only a portion of its annual investment returns.

How Much Can Be Used?

The original Endowment Policy recommended that CSSA distribute approximately 3% to 5% of the endowment’s invested value annually when it reaches $1,000,000. This spending policy is widely used throughout the nonprofit sector because it seeks to balance two important goals:

• Providing dependable annual income for programs and operations.
• Preserving the purchasing power of the fund so it can continue supporting future generations.

What Does the Endowment Support?

Investment earnings from the endowment help strengthen CSSA’s long-term mission, including:

• Educational publications such as the CSJournal, To The Point, and Haseltonia
• Research grants and conservation efforts
• Member education and outreach
• Affiliate support
• New initiatives that advance the Society’s mission
• Financial stability during years when revenues fluctuate

The endowment allows the Society to continue investing in these programs while reducing reliance on unpredictable fundraising or membership cycles.

Why Is CSSA Reporting This Now?

Transparency is an important responsibility of the Board of Directors.

Members should understand not only the Society’s annual financial results, but also how long-term assets are managed and why they exist. By sharing this information, we hope members will better understand that the Endowment Fund is not unused money sitting idle—it is a permanent investment that helps secure the future of the CSSA.

The Board remains confident in the Society’s overall financial condition. Strong reserves, a professionally managed endowment, and ongoing improvements in financial management place the CSSA in a solid position to continue serving members while investing in the Society’s future.

We believe that financial transparency, prudent stewardship, and thoughtful long-term planning are essential to fulfilling our mission. We look forward to continuing to share updates with our members as we strengthen CSSA together.

Please feel free to contact our business office if you have any questions.