Lance Armstrong's Charity-Livestrong-Is Hurting

       Despite protestations to the contrary, the Livestrong charity is hurting. 

     

      Lance Armstrong apologized to the staff of his Livestrong cancer foundation and putting Livestrong at risk by using performance-enhancing drugs during a career in which he seven times won the Tour de France. A survivor of testicular cancer and founder of the charity, Armstrong had stepped down as its head after the USADA report became public. 

      A fact sheet on the foundation’s website notes that the organization raised $48 million in 2012, but its 2013 operating budget is projected to be only $38.4 million, a 10.9 percent reduction from its 2012 budget. Although its total revenues have been increasing, that is due to increasing amounts of “other revenues” attributed to licensing fees and the sale of products. 

      Meanwhile, contributions and grants declined from a shade less than $41 million in 2009 to $29.7 million in 2010, $24.7 million in 2011, and $23.4 million in 2012. To maintain a high operating budget, the foundation is probably drawing on its hefty fund balance, which had grown from $90.6 million at the end of 2010 to $103.4 million by the end of 2011. It is hard to imagine that Livestrong won’t suffer more in terms of lost contributions as more details come out. (h/t Rick Cohen, NPQ)

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