LETTER: STA donations going to bloated admin costs

The Standardbred Transition Alliance (STA) had its Inaugural meeting in November 2018. It was the brainchild of Mike Tanner (Executive Vice President/Chief Executive Officer -United States Trotting Association). Its mission “to accredit, inspect and award grants to approved organizations that acquire, rehabilitate, train and re-home Standardbreds” was at the time and remains to date, laudable.

The STA has provided a credible and substantive response to those who would argue that we (the Standardbred Industry) do not do enough for those horses (racehorses, broodmares, etc.) who no longer can serve in the capacity they were intended.

The STA does not directly provide aftercare. As its mission states – it awards grants to aftercare organizations that the STA accredits. We are long past the days when generous contributors make donations without regard to how their donations are being used.

The STA’s accreditation requirements are formidable and should give comfort to those who contribute directly to the STA, that their monies are spent wisely. However, their monies aren’t being spent wisely.  The STA has become a Boondoggle.

The sole accomplishment of the STA’s 12-member Board in the year 2023 was the disbursement of $200,000 in grants to just five organizations – four of which were initially accredited years ago – at a cost of more than $117,750 for the period January 1st through November 30, 2023.

There are several reasons for the 2023 cost. Most notably, the organization’s Administrator (a full-time salaried employee) was paid $80,400. The remainder went to travel and administrative expenses along with health benefits. The $117,750 is 40% of the total contributions ($295,670.00) made to the STA in the same period January 1st through November 30, 2023.

I looked at the IRS 990 from the Thoroughbred Aftercare Alliance (an organization that the STA modeled itself after). In 2021, their yearly expenses were 18.6% of total contributions. The same percentage appears true in their 2019 990 filing.

The STA costs (taken directly from the STA’s 2023 financial statements) are not likely to go down. While I was Treasurer, my farm took care of the bookkeeping and banking at no cost to the STA. Upon my resignation (July 2023), the STA retained (at its cost) an outside bookkeeper and a communications individual. The latter was always intended to be part of the Administrator’s responsibility.

Aside from the costs, the STA has some inherent issues that became known only after its first several years of operations. There are simply not enough Standardbred aftercare organizations to accredit. Even more problematic – the largest Standardbred aftercare organization refuses to submit to the STA accreditation process. One of the organizations the STA did accredit, did not have any Standardbreds in its care at the time.

June 1st, 2022, the U.S.T.A added a $5.00 charge to horse transfers. It resulted in a $168,000 contribution to the STA in the year 2023. OHHA contributed another $75,000. A fundraiser conducted – in concert – between Victory Hill Farm and Bluestone Farms brought in another $4,200.

Nearly $250,000 of the total contributions ($295,670) to the STA in 2023, were brought in by just three organizations. The money, for the most part, has been wasted. The STA’s mission statement is simply too narrow, expenses are too high and its Board borders on a bureaucracy.

After more than four years as the STA Treasurer, I can safely say the costs could be reduced by 50 -60%. The mission statement could be expanded.

As an example, there are many industry connections, owners, trainers, etc. who care for horses that are retired. The STA could help offset some specific costs these people incur taking care of their horses. Its mission could also be expanded to include other breeds as an incentive for their aftercare agencies to take on Standardbreds.

Furthermore, The STA does not need a 12-member board. Half that number would be considerably more effective and efficient. And it does not need the expense of a full-time salaried Administrator.

At the current pace of spending, the STA will exceed a million dollars in administrative costs in fewer than nine years.

Imagine how many horses could be helped into new lives – staying true to the intention of donors – with even a fraction of that money? It is time for the STA Board, OHHA, and the U.S.T.A. to stop wasting money. Good intentions can exist in concert with good business practices.

by Mitchel Skolnick