YWCA Regional Leadership Council

FINANCIAL VITALITY TASK FORCE

YWCA Regional MeetingsFall, 2010

Why A YWCA Financial Vitality Study?

Financially Strong YWCAs are Critical To Success Of Our Mission

But All Is Not Well:

• We’ve lost too many YWCAs• Assets are eroding: e.g. buildings sold, endowments/

reserves spent down, programs cut• Buildings/facilities in disrepair and uncompetitive• Administrative supports insufficient for sustainability• Low salaries/benefits undermine empowerment• Financial problems create CEO/Board tension, burnout

We’re Taking the Issue on Squarely

RLC Financial Vitality Task Force Formed in May, 2010

Our Goal:

To help YWCAs be stronger, more sustainable and more effective in fulfilling their mission by improving their financial health and vitality.

Key Deadlines:

• Final report and recommendations: July, 2011• Training and technical assistance begins Sept., 2011

Financial Vitality Task Force Members

Martha Breunig, YWCA New England RegionRuth Irving-Carroll, Mid-Atlantic RegionLinda Cavioli, President, Regional Leadership CouncilChristie Dailey, YWCA Southwest DeltaMelanie Fitzgerald, YWCA Northeast RegionCarolyn Flowers, YWCA Southeast RegionDiane Glenwright, Chair, Mid-Atlantic Finance CommitteeClare Gravon, Greater Heartland RegionBecky Hines, YWCA Great Lakes AllianceKay Kelly, YWCA Pacific RegionMary O’Brien, Chair, Northeast Regional CouncilRita Ryder, YWCA Northwest Region

Our Approach

Develop Alternative

Financial Models

Report Findings, Conclusions,

Recommendations

Help Local YWCAs Implement

Assess Financial Health of YWCAs

Identify factors associated with strong,

weak

Identify “Best Practices”

Specific Data Collection Components

1. An Analysis of YWCAs Disaffiliated Since 2003

2. Focused Discussions at Fall 2010 and Spring 2011 Regional Meetings

3. A Review of Key Financial Indicators for YWCAs

4. A Survey of Local YWCA CEOs/Board Leaders

5. A Closer Look at a Sample of Very Financially Healthy YWCAs

Findings On Disaffiliated YWCAsNumber of Affiliated YWCAs as of 8/2010: 258

YWCAs Disaffiliated since 2003: 39 (or 13% of total); in addition, 4 YWCAs merged/consolidated with neighboring YWCAs.

Disaffiliation Outcomes for the 39 YWCAs:

• 5 YWCAs merged with or gave programs to other organizations (not YWCAs)

• 22 YWCAs (56 % of those disaffiliated) ceased existing

• 9 changed their names and continued program operations

• 2 liquidated their assets and became a women’s foundation

• 1 is contesting disaffiliation

Common issues/underlying factors that triggered disaffiliation:

• Mission or Hallmark issues (9 YWCAs)• Facility issues (old, antiquated or new and insufficiently financed)• Board and CEO leadership issues• Board and CEO competency/skill issues

Financial Issues a primary or major cause in 79% of disaffiliations (31 YWCAs)

What Factors Contributed to Financial Failure ofDisaffiliated YWCAs?

Percent of YWCA’s where “contribution to financial failure” scored “1” or ‘’2” on a “1” to “5” (“Major Factor”—’Not a Factor”) scale. Bold type = top 4 issues.

• Programs too dependent on government funding: 35.5%• Building/facility in disrepair: 42%• Weak board: 63.4%• Association not mission-driven: 46.7%• Weak fundraising program: 64.5%• Weak community support: 61.3%• Weak CEO: insufficient management/leadership skills: 67.8%• Poor financial systems, policies, procedures: 41.9%• Board/CEO conflicts: 45.2%• Poor quality of services: 22.6%• Insufficient administrative infrastructure: 48.4%• Poor financial discipline: 45.2%• Financial irregularities, malfeasance: 13.4%

Most (58% ) had budgets under $500,000; 100% had budgets under $2.5 million

Discussion Questions Today

1. What is the current annual operating budget of your YWCA? $______________ 2. How would you rate the financial health of your YWCA?

1). ___ Struggling/experiencing annual deficits

2). ___ Struggling but improving

3). ___ Breaking even

4). ___ Showing a small positive fund balance

5). ___ Showing a moderate fund balance

6). ___ Financially strong

7). ___ Other

3. What are the key factors that undermine the financial health of local YWCAs? (list, then have everyone vote for their top five….the “sticker” exercise)

4. What are the key factors that contribute to a financially healthy YWCA? (list, then identify top five…the “sticker “exercise)

5. What assistance should the Regions provide to help local YWCAs strengthen their financial capacity and vitality?

Stay Tuned!!• Look for regular updates on the work of the Financial Vitality Task Force—information you can use to benefit your YWCA

• We’ll seek your input on key issues via Survey Monkey latter this year

• We’ll review our findings and seek your input on study recommendations at Regional meetings in Spring/Summer, 2011

• We’ll develop training and technical assistance plans to help local YWCAs implement changes they choose to make to enhance their financial vitality in Fall and Winter, 2011/12.