The Sierra Club, one of the nation’s largest environmental groups, faces major cutbacks because of a $6.8 million operating loss over the last four years, club officers told chapter leaders at meetings last week.
The organization’s board of directors is to decide this weekend where to trim its $40 million budget, but executive director Carl Pope said he expects them to slash spending on books, support for local chapters and lobbying activities. Some of the club’s 350 employees could be laid off, he said.
“We’ve concluded that the turnaround in the economy we’ve been looking for does not seem to be coming,” Pope said. “We have to downsize our operations. That’s hard to do. We have good programs, and we’re proud of them.”
The organization is well known as a powerful lobbying force for environmental causes. Pope said that of the seven major campaigns dealing with topics such as mining and timber reforms, desert preservation and clean water, two will probably get the ax. The effect of cutting back on political lobbying would be minimal because 1995 is not a major election year.
The Sierra Club’s financial woes are emblematic of the environmental movement’s shrinking influence, some observers say. Other groups including Greenpeace and the Wilderness Society have also reported drops in revenue.
Pope stressed that despite the operating deficit, the club still has a positive net worth, because of a $10 million endowment fund. The club has been borrowing against the fund to cover its operating losses.
He blamed the club’s financial problems on the stagnating economy. Since 1991, more than 100,000 people have left the San Francisco-based organization, he said, bringing memberships down to about 500,000. Some other members who have stayed with the club have reduced their contributions.
