GWU work sample

GREATER WASHINGTON URBAN LEAGUE

Tiffanie Harrison Violet

Neelima JohnTeam 9

Agenda

Analyze

Financials

Issues Raised

Root Cause

Recommend

Downsize

Restructure

Fundraise

Manage

Implement

Financial Outlook

Organizational Chart

Timeline

Summary

Charge

“How can the Greater Washington Urban League improve its position to better fulfill its mission and objectives?”

Make finance department administratively and technologically efficient Internal controls Management & financial

reporting Cost-savings techniques

Rely less on government grants

Financial Analysis

2007

Support & RevenueGov’t Grants/Contracts $ 4,173,646.00 59%Other Grants/Contracts $ 204,494.00 3%

Contributions $ 744,655.00 11%Special Events $ 870,109.00 12%

United Way $ 4,478.00 0.06%In-Kind $ 559,930.00 8%

Membership Dues $ 29,405.00 0.42%Rental Income $ 166,071.00 2%

Other $ 288,233.00 4%Total Support & Revenue $ 7,041,021.00 100%Expenses

Program Expenses $ 5,484,656.00 78%Support Expenses $ 2,360,716.00 34%

Total Expenses $ 7,845,372.00 111%

ImplementRecommendAnalyze

Financial Trend Analysis

2008 2007 Trend

Support and Revenues $7,189,171 7,041,021 +2%

Program Expenses 6,191,394 5,484,656 +13%

Support Expenses 2,047,172 2,360,716 -13%

Total Expenses 8,238,566 7,845,372 +5%Change in Net Assets (1,049,397) (804,351) +30%Gain (Loss) on Rate Swap (243,603) (53,068) +359%Net Assets Beginning 3,488,549 4,305,968 -20%

Net Assets Ending $2,155,549 $3,448,549 -37%


Key Financial Changes

2008 2007 Change

Fundraising Expenses $ 29.00 $ 23,389.00 $(23,370.00)

Contributions Income $ 598,466.00 $ 744,655.00 $(146,189.00)

Special Events Income $ 721,015.00 $ 870,109.00 $(149,094.00)

Why have program costs

gone up if programs have

been cut?

Why were fundraising costs nearly eliminated?

Were fewer special events

held in 2008, or was attendance

lowered?


Issues Raised

Administrative efficiency How can we modify our mission and vision

to speak to our core competencies? How can we downsize programs? What is the optimum size of the Board of

Directors? Technological efficiency Financial Independence


Root Cause Analysis

• Because expenses are higher than income

Why is the GWUL

operating at a loss?

• Because we cannot bring in enough money to cover all of our programs

Why are expenses

higher than income?

• We have too many programs• We have not done enough

fundraising

Why can’t we pay for all of

our programs?


Implement

Plan Overview

Phase One: Administrative Efficiency•Clarify Vision•Downsize Programs•Restructure Board of

Directors

Phase Two: Technological Efficiency•Donor Management

Phase Three: Financial Independence•Pay-It-Forward Campaign•Financial Best Practices

RecommendAnalyze

Phase 3

CLARIFY VISIONDOWNSIZE PROGRAMS

Develop Criteria

Adopt a Framework

Evaluate Programs

BOARD RESTRUCTURING

Phase One: Administrative Efficiency

ImplementPhase 1Analyze Phase

2Recommend

Clarify Vision

Vision

To increase the economic and political empowerment of blacks and other minorities to reach a world where all

Americans share equally in the responsibilities and rewards of full citizenship

Mission

To use the tools, methods, and partnerships at our disposal to provide opportunities to our constituents and their

communities to enter the economic mainstream and become self sufficient

Phase 3 ImplementPhase

1Analyze Phase 2

Downsize Programs

1. How does this program lead to the realization of our vision?

2. Does the program fulfill our mission?

3. Does the program fit our existing strategies?

4. Do we have expertise in this area?

5. Is it financially viable?

Objective Criteria


1Analyze Phase 2

Downsize Programs

Must Have

Should HaveCould Have

Would Have

Mission

Objective

Strategies

Tactics

MoSCoW MOSTAdopt A

Framework


1Analyze Phase 2

Summary of Downsizing

Housing and Community Development Eliminated 3/11 Programs ( 27%) $567,000 Savings

Aging and Health Services Eliminated 1/1 Program (100%) $833,000 Savings

Education and Employment Eliminated 1/8 Programs (12.5%) $7,750 Savings

TOTAL SAVINGS: $1,407,750.00 ASSUMPTION: Program costs are all equal within each

division.


1Analyze Phase 2

Restructured BOD

7 Member Boards

15 Member Boards

Optimal Board Size: 12-15 Members Advantages:

Great for Fundraising Great for organization oversight through

subcommittees Disadvantages

Not as decisive as smaller boardsPhase

3 ImplementPhase 1Analyze Phase

2

Phase 3

Donor Management


2

Phase Two: Technological Efficiency

Recommend

Donor Management

GWUL Needs Donor Software That: Has the ability to track all constituents in

one system WHY? Current users are future donors

Is configurable to our unique processes Can track all fundraising events

Online donations, gala attendees Manage events


1Analyze Phase 2

Software Criteria

Donor Management

Can track all constituents Configurable to our processes Tracks a variety of fundraising events Event management Cost $5000 initially, $1200 annually

thereafter Estimated benefit: 10-20% increase in in-

kind donations


1Analyze Phase 2

Donor PerfectTM

Phase 3

Pay-It-Forward CampaignFinancial Best Practices


2

Phase Three: Financial Independence

Recommend

Pay It Forward Campaign

Who: Former beneficiaries of GWUL programs

What: A $5 annual “donation” that increases by $5 per year. $5 year 1, $10 year 2, $20 year 4

Why: Minimal investment on the donor’s end made up for by the number of donors Allows a continued connection to the GWUL


1Analyze Phase 2

Pay It Forward

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Year 1 3,250$ 6,500$ 9,750$ 13,000$ 16,250$ 19,500$ 22,750$ 26,000$ 29,250$ 32,500$ Year 2 3,250$ 6,500$ 9,750$ 13,000$ 16,250$ 19,500$ 22,750$ 26,000$ 29,250$ Year 3 3,250$ 6,500$ 9,750$ 13,000$ 16,250$ 19,500$ 22,750$ 26,000$ Year 4 3,250$ 6,500$ 9,750$ 13,000$ 16,250$ 19,500$ 22,750$ Year 5 3,250$ 6,500$ 9,750$ 13,000$ 16,250$ 19,500$ Year 6 3,250$ 6,500$ 9,750$ 13,000$ 16,250$ Year 7 3,250$ 6,500$ 9,750$ 13,000$ Year 8 3,250$ 6,500$ 9,750$ Year 9 3,250$ 6,500$ Year 10 3,250$ Total For year 3,250$ 9,750$ 19,500$ 32,500$ 48,750$ 68,250$ 91,000$ 117,000$ 146,250$ 178,750$

5 Year Total 113,750$ 10 Yr Total 715,000$

10 Years, 1% of constituents added per year, at $5 per year

$715,000


1Analyze Phase 2

Pay It Forward

10 Years, 5% of constituents added per year, at $5 per year

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Year 1 16,250$ 32,500$ 48,750$ 65,000$ 81,250$ 97,500$ 113,750$ 130,000$ 146,250$ 162,500$ Year 2 16,250$ 32,500$ 48,750$ 65,000$ 81,250$ 97,500$ 113,750$ 130,000$ 146,250$ Year 3 16,250$ 32,500$ 48,750$ 65,000$ 81,250$ 97,500$ 113,750$ 130,000$ Year 4 16,250$ 32,500$ 48,750$ 65,000$ 81,250$ 97,500$ 113,750$ Year 5 16,250$ 32,500$ 48,750$ 65,000$ 81,250$ 97,500$ Year 6 16,250$ 32,500$ 48,750$ 65,000$ 81,250$ Year 7 16,250$ 32,500$ 48,750$ 65,000$ Year 8 16,250$ 32,500$ 48,750$ Year 9 16,250$ 32,500$ Year 10 16,250$ Annual 16,250$ 48,750$ 97,500$ 162,500$ 243,750$ 341,250$ 455,000$ 585,000$ 731,250$ 893,750$

568,750$ 3,575,000$ 5 Year Total 10 Yr Total

$3,575,000


1Analyze Phase 2

Financial Analysis

Support & RevenueGov’t Grants/Contracts $ 3,713,579.51 63%Other Grants/Contracts $ 154,040.88 3%

Contributions $ 490,657.83 8%Special Events $ 591,130.74 10%

United Way $ 7,019.63 0.12%In-Kind $ 586,091.27 9%

Membership Dues $ 22,619.91 0.38%Rental Income $ 142,736.66 2%

Other $ 228,077.44 4%Total S & R $ 5,935,953.87 100%Expenses

Program Expenses $ 1,587,097.00 27%Support Expenses $ 2,107,444.86 36%

Total Expenses $ 3,694,541.86 62%

2010(estimated)


Implications on Assets

2009 2010

Beginning Assets $ 2,086,965 $ 2,021,562

Ending Assets $ 2,021,562 $ 4,262,975

Change in Assets ($ 65,402) $ 2,241,412

$1,000,000 of the new assets should immediately go to establishing the endowment fund. In any future years with a surplus, 50% of the surplus should be moved to the endowment fund.


Timeline for Implementation

Immediate: • Downsi

ze

6 Months: • Donor

Management, Financial Best Practice

1st YEAR: • Pay it

forward, evaluate finances and financial best practices

2nd YEAR: • Evaluate

position, make necessary changes

5th YEAR: • Reevalu

ate feedback entirely


Implement

Plan Overview

Phase One: Administra

tive Efficiency

Clarify Vision

Downsize Programs

Restructure Board of Directors

Phase Two: Technologi

cal Efficiency

Donor Managem

ent

Phase Three:

Financial Independe

nce

Pay-It-Forward

Campaign

Financial Best

Practices

RecommendAnalyze

Stakeholder Analysis

Employees Job Security Making a Difference

Constituents Program Continuity

Donors Donations are used appropriately and

effectively Population of the Washington DC metro area

Continued existence of the GWUL

Tiffanie Harrison Violet

Neelima John

Questions?