Dear member of the PMC community,

A recent story by Fox News misrepresented the management of the PMC and unfairly questioned the integrity of its founder, Billy Starr.

It is not by accident that the PMC has become the nation’s most successful athletic fundraising event. Billy Starr began in 1980 with a clear vision and a singular purpose, and for the last 25 years he has led thousands of riders, volunteers and sponsors across the state year after year, with one goal in mind – to help alleviate the personal devastation caused by cancer. Along the way, the Pan-Mass Challenge has contributed more than $102 million to the Jimmy Fund for cancer research and treatment.

It is also not by accident that the PMC is now the nation’s most efficient event fundraiser. Because Starr has secured large sponsorships and donations – from the recent $2.1 million presenting sponsorship of the Boston Red Sox to the combined 10-year, $7 million dollar sponsorship of New England Cable News and MFS Investment Management – PMC cyclists ride with the knowledge that over 92 percent of the money they raise goes directly to the Jimmy Fund. That efficiency stands in stark contrast to the record of many of the well-known fundraisers run by other charities and professional management companies, which frequently contribute 65 percent or less to the charities they support.

The success of the PMC has been documented as recently as last summer when the Boston Globe wrote an article about social entrepreneurism and lauded the PMC as an example of a business model to be studied and followed. The summer prior, the New York Times heralded the PMC as a charity event that serves as a model for all others, based on the PMC low operating costs and its high contribution percentage to its beneficiary, the Jimmy Fund.

The Pan-Massachusetts Challenge is Billy Starr’s life’s work. For 25 years, Starr has led the PMC as its executive director, an annual cyclist, and a fundraiser who has personally raised more than $600,000. The PMC is managed by Starrting Events, an event management company owned by Billy Starr.

The PMC Board of Directors, of which Starr is one of eight members, determines all matters of finance including choosing the management company, which runs the PMC. The board also determines Starr’s annual compensation. (Starr does not vote on matters related to his compensation, nor does he participate in the board’s discussion of those matters.) Billy invited Dana-Farber’s Chief Development Officer to sit on the PMC's board. That seat has been duly represented since 1987. The PMC board, with the help of an independent consulting firm, sets Starr’s annual compensation for his PMC work. In addition, the board of directors determines the management fee to be paid to Starrting Events. This 2003 management fee paid to Starrting Events, that compensates Billy Starr and six other employees, was $830,000.

Fox News focused on the years 1998 through 2003 in its report. During those years, the PMC’s gift to the Jimmy Fund grew from $6.7 million to $16.2 million! Furthermore, the management fee during that period actually decreased in proportion to the gift from 7.1 to 5.1 percent. In the last five years alone, the PMC’s gift to the Jimmy Fund has totaled $66.4 million making it the Dana-Farber largest contributor – ever – in the 53-year history of the Institute. The PMC board regularly reviews the management agreement with Starrting Events and chooses not to put the agreement out to bid because the PMC’s performance, and its contribution to the charity, is unparalleled.

Contrary to the negative implications of the Fox News report, the PMC board of directors believes Starr’s compensation is fair and appropriate. His compensation is targeted to that of executives at approximately the 75th percentile of similarly sized non-profit organizations; a level we believe is fitting given the exceptional growth and success of the PMC, as well as its unparalleled fundraising track record. Furthermore, the PMC was in direct communication with state regulators when it set up the current PMC structure in 1995, and, as recently as last month, the Attorney General’s office determined that the PMC has satisfied all of its filing and disclosure requirements related to Billy Starr and Starrting Events.

As we all prepare for the 25th PMC this summer, please be assured that the PMC is well managed and well served by Starrting Events. We have every confidence that with your continued support, the PMC will once again set a new record of support for the Jimmy Fund, and more importantly, move us all that much closer toward a cure for cancer.

Please don’t hesitate to contact me, or Billy Starr, should you have any questions.

Gordon Prichett
Chairman, PMC Board of Directors
978-590-7615
gprichett@hotmail.com