2 0 1 9 A N N U A L R E P O R T

NSPS President's Letter2019 Annual Report August 2020

Dear Members, Donors, Sponsors, Volunteers and Friends,

We are pleased to present to you the Nashville Steam Preservation Society’s (NSPS) 2019 Annual Report. 2019 was a monumentalyear for the organization, as NSPS crews and contractors worked to relocate No. 576 from Centennial Park to operational railwaytracks. Once back on active rails, crews then prepped the locomotive to be towed across town to the restoration facilities at theTennessee Central Railway Museum via the Nashville & Western, CSX, and the Nashville & Eastern railroads. A sight that manythought would never be seen. Thanks to you, it did happen and restoration work on No. 576 is in full swing, despite the pandemicthat has recently affected us all.

Once No. 576 safely arrived at the TCRM facility, NSPS swiftly moved towards its disassembly and inspection phase, and facilityimprovement projects in 2019. Through the course of the year, we began the complete teardown of the locomotive -- and evenbegan and completed the restoration of several major appliances -- all while evolving our fundraising strategies and building anetwork of support. The boiler was abated by a licensed contractor and then media blasted before undertaking the UltrasonicThickness (UT) testing. Our sponsor and supporters at World Testing, Inc. completed the necessary inspections, which alsoincluded tensile strength testing and chemical composition analysis of all boiler steel, utilizing cutting-edge technology.

Throughout 2019, our volunteer family of dedicated individuals logged over 4,200 hours prepping No. 576 for movement,disassembling the locomotive for inspection and restoration, developing fundraising and marketing plans to meet our goal, andhandling important administrative duties that ensure the project stays on track.

Financial support remained strong at $341,087 in 2019. Foundations contributed more than $175,000 in unrestricted gifts, and giftsfrom individuals totaled over $142,000. Donations of equipment from corporations and individuals totaled in value more than$38,950, and included a former Amtrak baggage car and two CSX box cars for parts storage and various machinery and tools.

Thirteen corporate sponsors supported NSPS in 2019, including both in-kind services and products totaling a value of more than$150,000. Information about our generous sponsors is available on our website, along with details on sponsorship levels,opportunities and programs.

The Nashville Steam Company Store’s sales increased by 57% over 2019, and closed the year with $15,937 in net income. Productlines grew to 18 categories, with more than 80 individual items offered. New product development, increased awareness and mediacoverage helped drive sales through the website, social media and events. All proceeds from the Company Store support therestoration and future operation of the locomotive. A Matching Grant opportunity was announced in late 2019 by Caroline and Rich Tower of The Candelaria Fund and WickMoorman of The Wick Moorman Charitable Trust that will fully match all donations of $500 or more through December 31, 2020,up to $300,000. To date, we have raised $230,000 towards this goal that, if reached, The Candelaria Fund will award NSPS with a$50,000 bonus! Your generous support is requested to help us reach this goal. Our 2019 Open House was held at the Tennessee Central Railroad Museum in April, before disassembly work began. Near the sametime, country music legends Marty Stuart and Harry Stinson provided their support for the project by creating and producing asong about locomotive 576 titled “The Duchess: Queen of the Dixie Line,” which they debuted at the Country Music Hall of Famethis past October. “The Duchess” is available for sale/download on the NSPS website and all proceeds go towards the restoration ofNo. 576.  We will always remember 2019 as the year the project was put into motion, and it would not have been possible without ourgenerous and growing number of supporters. On behalf of the Board of Directors and staff at NSPS, thank you for your incredibleand sustained support. We wish you and your families good health during these trying times. We will get through this together, andin just a few short years we’ll be able to enjoy the return of No. 576 to operation, pulling passenger excursions from downtownNashville.

SHANE MEADORPresidentNashville Steam Preservation Society, Inc.

2019$ 604,653 $ - $ 11,499 $ 32,248 $ 125,646

2018 $ 761,528$ 144$ 6,939$ 18,502$ 26,718

$ 774,046 $ 813,831

$ 1,417 $ 5,315

$ 1,417 $ 5,315

Net assetsNet assets without donor restrictionsNet assets with donor restrictions

$ 772,629$ -

$ 808,516$ -

$ 772,629 $ 808,516

$ 774,046 $ 813,831

$ 772,629

Direct public grants Individual business contributions Non-profit organizations In-kind donations Company Store sales Interest income

$ 175,946 $ 142,819 $ 21,904 $ 418$ 32,944 $ 2,189

$ 376,220

$ 263,158

$ 45,688 $ 103,261

$ 148,949

$ 412,107

$ 808,516

Assets:

Liabilities and Net Assets:

Cash and cash equivalents Accounts receiveable, net Inventories Prepaid expenses and other assets Property and equipment, net

December 31,

Liabilities Accounts payable

Total assets

Total Liabilities

Total net assets

Total liabilities and net assets

STATEMENT OF FINANCIAL POSITION

Expenses:Program Services

Revenue and Support:

STATEMENT OF ACTIVITIES

Total revenues and support

Supporting services: Management and general Fundraising

Total support services

Total expense

Change in net assets

Net assets, beginning of year

$ (35,887)

Net assets, end of year

Year Ended December 31, 2019Year Ended December 31, 2019

The mission of the Nashville Steam Preservation Society is to preserve our history by restoring andoperating relevant historic railroad equipment for the purpose of education, tourism, and goodwill to

and for Metro Nashville and the State of Tennessee.

*NSPS financials are independently audited on an annual basis.

*This estimate may vary depending on what is found during the disassemblyand subsequent restoration of components such as bearings, spring riggingcomponents, and trucks that have yet to be removed or disassembled. Includedare estimates for labor of skilled and experienced contractors and material.Volunteer labor could potentially reduce the total labor cost by 20% or more.Project time frame estimated at 3.5 to 4 years to completion, once heavyrestoration work commences. Timeframe could potentially be reduced to 2 to 3years with an increase of outsourcing, and cost by as much as 15% to 20% oftotal estimate.

Estimated Cost to Convert Back to Original"Yellow Jacket" Configuration: $12,000Miscellaneous Consumables: $20,000Rental and Equipment Purchase $150,000City-required Escrow: $100,000TCRM Facility Upgrades: $117,000

NC&ST.L 576 RESTORATION BUDGET

Locomotive and Tender Restoration Estimates*

Boiler and Steam Pipe: $520,000Appliance: $173,500Tender Trucks and Wheels: $206,000Locomotive Wheels and Rods: $340,000Frame, Spring Rigging, and Brake Rigging: $228,000Valve Gear: $92,000Pistons and Crossheads: $68,500Engine Truck and Trailing Truck: $230,000Air Brake: $27,000Running Boards, Jacket, Lagging, and Paint: $75,000Total cost for locomotive and tender restoration includingworst-case examples: $1,960,000

Ancillary Expense Estimates**

**Other expenses, such as facility rental, utilities, administration,and insurance are not included in these estimates, and may add anadditional $500,000 to the operating budget throughout therestoration project.

Top: Volunteers lower the rear tube sheet down to the firebox for removal andreplacement.

Bottom: Marty Stuart and Harry Stinson stopped by to check in on the progress of"The Duchess!"

Below: Jeff Brisendine cutting out the combustion chamber thermic syphon for repairs.

DONOR ROLL 2019: INDIVIDUAL GIFTS$1,000+ per yearRoberta Ballard

David Bayer J.H. Blackwood

David BoydMichael Brian

Dana & Jeff Brisendine Jim Fetchero Jack Fisher

W.O. GreeneMichael Hartshorne

Charles Heath Anne Hook Nathan Hull Alex J. Joyce

John Kennedy William D. McCord

Jerry McFarland Reg MitchellRobert Neal

James V. PainterRoss Perry

Allan PhillipsDonald PocekDale Roberts

Henry M. SherwoodSamuel A. Smith James Spradley

James R. Stadler William Strong

Frank (Bill) W. Webster

$500 - $999Gregory Allison Natasha Bettis

George W. Crook Arthur Cushman Albert J. Dale III

Sue Keith Elverston Steve Gibson

J.T. GrayR. Edward Hawkins

William I. HendersonS. L. Johnson III

Don Jones Paul Nichini

William Ozier Thos Ryan

Brady SankerTony White Roy Wullich

$100 - $499Gareth S. Aden

Joseph Armstrong Darek Baker Barry Banker Brian Barton Robert Beck John Bendall

Raymond A. Berlin

Preston BlackJohn H. BohonEdward Bridges

Joseph BryanWilliam F. Bundy

Wendell Burks Lewis C. CasingerJoseph D. Cason Paul Cervenansky

Gary Chunn Tim Collins

James CortnerEmily Crook Joseph Darby

Bob Dill Mark Drake

Daniel W. Duncan Lewis D. Ellenburg

Mike EmbreeGene R. EzellAaron Farmer

William W. Farrell Jeff Fisher

Joe Ed GaddesMike Gillespie

David GreenAl Harkins

Mary Hawkins Gail Hearn

Dennis Heimbrook Mary Jones

James E. Keith Robert Kimbro Charles Kirchner

Robert Krone Scott Larsen

James D. Lesch Albert Mallory

Andrew MeinzerNicholas MerrittMark Mitchell Leanne Morse

Hugh D. Nichols Michael OmartianRichard C. PageMichael Parham

Eleanor Menefee ParkesLarry Paxton Eric Pearson

Paceda J. PetronePhillip PonderDolly Prenzel

Joseph Randall Russell Rawson Joseph Rizotti Alex Robison

Ronald Samuels John SchneiderJanice SimpsonGordon SmithBrian Smith

Thomas SpiggleRobert St. JohnJohn F. StapkoRobert SteinkeRobert Stewart

Willie SweetWilliam Tally

Michael TarrantWilliam Taylor

R. Victor Varney Michael J. Webb

Jeff Wilson Aaron Woodard

Lee YoderElaine Youngblood

Up to $99Keith Allen

Monica Armstrong Jeanne Burns Arnold

Jeanne F. BallingerJulie & Rich Bayhi

Charles BeamBrian Blackburn

Oval Bryan T.J. Caldwell

Kathleen CassidyTerry Coats

Rodger Coleman Beverly Ann Cook

James CooperJames Copeland

Peter CrowellMike CurtisDelek Daf

Dana De PenaMarianna DiStefano

Bob DonovanAndrew Dorsey Tommy Doyle Linda DuntschJerry Durkin Daniel Dutton

Arnold W. EavesWill Ebbert

Melinda EdwardsJeff Elizer

Jane EskindJohanna Fabke

Rachel FoxShirley German Jake Gleghorn

Mark GoodrichAlvin R. Goodwin

Bob GrohSteve Haack

David HackettDavid C. Haney

Eric Henry Charles C. Hixon

Micah Hixon

Leif HolmgrenChristopher HomcoAugustus Hothorn

Maria HoverNicklas HoveyLaurie Hughes

David IbataFloyd Jennings

Chris Jolly Jim KindredJosh King

Edwin KnechtKeith KraftJenni Kriner

Charles LavenderPaul Lebovitz

Christopher LewisWilliam Lightfoot

Daryl LundMichael Mankin

Joy Lynn MaynardCharles McDowellGrady McKinleyShane Meador

Austin MeredithLewis Michael

W. N. MiddletonJoe Miller

Sandra MiselemW. Andrew Morrison

Ronald A. MusickJoe Nemmer

Kirt OdleRoger Parish

Tanner PetersonLarry Peters

Richard PittmanRobert Rhea

Michael RichmondJ.P. RobinsonEdmund RockAnthony Sallo

Donna SavaTroy SimpkinsLester Smith

Walter Gary Smith Gary SmithKen Smith

Stormy SpeaksPaul SpurlockByrom Stacey

John StanberryThomas Stillwell

Susan ThomasJames ThompsonJohn ThompsonJaie TiefenbrunnJustin WeinbergBenjamin White

Ron WhiteCharles WoodallCharles Yoders

AES ManufactureThe ALCO Historical & Technical SocietyJohn Bouchard & Sons Co.The Candelaria FundThe Community Foundation of Middle TennesseeCowan Railroad Museum CSX TransportationTom E. Dailey FoundationThe Right Track FoundationThe Walter Ferguson Charitable TrustFMW Solutions, LLC

CORPORATE AND FOUNDATION SUPPORT

Harmony Investment Management, Inc.HMS Capital ManagementWilliam HumphreyThe Joyce Family Foundation KrogerLipman Brothers, LLCNational Railway Historical Society, Inc. Network For Good Phoenix USA, Inc. Ridin' the Rails Scarlett Family Charitable Fund

Below: Can't beat that view!

IN-KIND SUPPORT

Rebecca Bender Blackbird Media The Buntin Group Comcast CSX DZL Management Dr. Jack Fisher Fort Wayne Railroad Historical SocietyHMS Capital Management John Bouchard & Sons Co. Lincoln Electric Co. Lynchpin Creative Mammoet

Joy Maynard McCullough Electric Co.RJ Corman's Nashville & Eastern and Nashville & Western Railroads Rogers Inc. Keith Rucker of VintageMachinery.orgSafety Kleen Sandhu Consultants Marty Stuart and Harry Stinson MusicTennessee Valley Railroad Museum UNARCO Volunteer Welding Supply World Testing, Inc. 

2019 - 2020 RESTORATION

Top: A crew member media blasts No. 576's boiler exterior in preparation for the boilerinspection.

Bottom: A section of the right wrapper roof is removed for repairs and replacement.Locomotive cab restoration     Wrapper roof flush patchesFabrication of new rear tube sheetMachining of new valve cagesNew flexible staybolt sleeves and capsFirebox side sheet replacement Repairs to the combustion chamber syphonStoker steam engine progresses at VintageMachinery.orgWater heater restoration work near completionAir pump lubricator restoration is complete

It’s been quite a year of hard work with progress being made on therestoration of No. 576, both in Nashville and in machine shops acrossthe southeast. In September 2019, we ventured up to the CuyahogaValley Scenic Railroad in Northern Ohio with No. 576’s originalwhistle. We placed the whistle on visiting steam locomotive NickelPlate Road No. 765 for a sneak preview of what an operational 576might sound like. The only word to describe it is: WOW! The shop-built, three-chime whistle sang in its true form for the first time since1952. And what a performance it was. The musicians down on lowerBroadway are sure going to have some stiff competition in a few years!Our thanks to the Fort Wayne Railroad Historical Society for makingthis possible.

NSPS completed upgrades to the shop area by enclosing the structureand creating a safe work environment for our volunteers and a securefacility for No. 576 out of the elements. We continue to amass thetools and equipment needed to inspect and repair the locomotive,including a donated Power Wave welding machine from our friends atLincoln Electric. NSPS volunteers media blasted the outside of theboiler and project sponsor World Testing, Inc. completed therequired UT scan on the metal thickness and metallurgicalcomposition of the boiler. To our surprise, the boiler was in overallgood condition, despite sitting outside for over 60 years. With thosenumbers we compiled a boiler report and plotted out a road map ofneeded boiler repairs.

Additional projects making progress:

This year, we have received several grants that directly support therestoration of a number of key components of No. 576. We wouldlike to thank the ALCO Technical & Historical Society, theNational Railway Historical Society, Inc., the Tom E. DaileyFoundation, and the Society for Industrial Archaeology for theirsupport and recognition of the restoration of Nashville’slocomotive.

We would also like to sincerely thank you for your contribution toand support of the restoration of NC&StL No. 576. Despite theuncertainties of COVID-19 this year, donations continue to besteady. And thanks to your help, we had the most successful BigPayback to date, raising more than $10,000 in a 24-hour period.And, with an additional award from the Community Foundationof Middle Tennessee and the matching opportunity, the final totalwas more than $24,000! None of this would be possible without the support of hundreds ofvolunteers, donors, and individuals interested in bringing a pieceof Nashville history back to life. Each year attracts new interest inbringing the rhythm of the rails back to Music City!

Below: Former Amtrak baggage car No. 1251 was donated by the Fort Wayne RailroadHistorical Society to the Nashville Steam Preservation Society.

Shane Meador, PresidentTerry Bebout, Vice PresidentBill Webster, CPA, Treasurer

Joey Bryan, SecretaryBrian Barton, Director

Dana Brisendine, DirectorDr. Jack Fisher, Director

Alex Joyce, DirectorBill Ozier, Esq., Director

Eleanor Menefee Parkes, Director

Number of volunteers: 122Hours for 2018: 4,042 plus 200 admin hours

Total volunteer hours for 2018: 4,242

The Buntin GroupJohn Kennedy, Registered Agent

Lynchpin CreativeSheridan PR

Tompkins Eckert and AssociatesDavidson Ward

BOARD OF DIRECTORS

Julie & Rich Bayhi, Company Store ManagersRebecca Bender, Membership Coordinator

Dana Brisendine, Fundraising Committee ChairJeff Brisendine, Volunteer CoordinatorJoey Bryan, Communications Manager

Linda Duntsch, Database AdministratorShane Meador, Project ManagerAlex Mullins, Event Coordinator

Charles “Wick” Moorman, Co-ChairRich Tower, Co-Chair

Tim BentleyBill Drunsic

Michael F. Hartshorne, M.D.Mark Hinsdale

Doyle McCormackMonique Odom

Bill OzierMike PhilpotBill Purcell

Henry “Hank” SherwoodJim Wrinn

MANAGERS

ADVISORY COMMITTEE

CONSULTANTS

VOLUNTEERS

Top: Jeff Brisendine and Al Phillips removing the staybolt caps.

Bottom: The crew posed around their "catch of the day," thecombustion chamber thermic syphon.

WWW.NASHVILLESTEAM.ORG