Mario Lemieux Foundation needs a plan, experts say

Funded by its celebrity golf tournament, the Mario Lemieux Foundation is finally breaking away - netting about $3 million for charity in six years.

But the fledgling foundation is still learning the ropes of philanthropy.

It lacks a strategic plan to guide its giving, Lemieux officials say. And it relies heavily - perhaps too heavily - on the Mario Lemieux Celebrity Invitational golf tournament for its revenues, experts say.

Having a strategic plan would allow the foundation to develop goals for where its money will be spent, they say. And reliance on one revenue source jeopardizes its ability to maintain its commitments.

The Lemieux Foundation gave away $61,082 in 1998 and $1.2 million last year. In February, the foundation announced a $5 million commitment over 10 years to UPMC Health Systems.

'This kind of foundation definitely should have some kind of strategic plan,' said Richard Larkin, a certified public accountant from Bethesda, Md., who specializes in nonprofit groups. 'You wouldn't start on a driving trip without some idea of where you're going.'

Larkin also suggested the foundation think about diversifying its revenues. In 1999, more than 90 percent of its gross revenues came from one source, the golf tournament, which is being played this weekend at The Club at Nevillewood in Collier Township.

'I wouldn't go so far as to say it's unwise,' Larkin said, 'but I would alert people to the risk involved.'

He said extreme weather or a disaster could wipe out the foundation's major revenue source.

Thomas Grealish, executive director of the foundation, agrees with Larkin's assessment.

'This tournament has grown so much so quickly,' Grealish said. 'That's why I'd like to write a five-year plan and come up with other fund-raising opportunities that would augment the golf tournament.'

The Lemieux Foundation, established by the owner and star center of the Pittsburgh Penguins, has become a major player in local cancer research.

Grealish said the foundation is considering holding a winter event and getting federal grants and gifts from other organizations.

'If we have to go down to Washington and tell our story, maybe we should tell our story there,' he said.

The foundation is building a database of contributors to solicit funds around Christmas. Last year, the second year of this fund-raiser, the appeal raised $25,000, Grealish said.

Its undisputed king of cash, though, remains the golf tournament.

Because of high costs, the tournament netted so little money in its early years that the foundation might have been better off just asking for funds, said Jerome B. McKinney, an economist in the Graduate School of Public and International Affairs at the University of Pittsburgh.

McKinney said the event turned a corner in 1999 when it netted $748,238. But expenses remain high. Two years ago, the four-day tournament cost $2.2 million.

Grealish said the biggest expenses include roping and staking the course, installing grandstands, a tent and bathrooms. In addition, the foundation rents Nevillewood for $50,000.

The tournament offers a purse of $225,000, with a minimum of $1,500 for the lowest scorer.

Grealish said celebrities at the event receive no stipend and buy their own airline ticket if they're competing for the purse. The foundation handles ground transportation and lodging. Seventy-five local companies help defray the cost with gifts.

Corporate sponsorships this year range from $28,000 to about $500,000.

Grealish said this week's tournament should net $1 million but may not reach last year's total of $1.2 million.

'We've seen the pinch of the economy like everyone else has,' he said.

Bill Zlatos can be reached at bzlatos@tribweb.com or (412) 320-7828.