2. Agenda
Analyze Recommend Implement
Financials Downsize Financial Outlook
Issues Raised Restructure Organizational Chart
Root Cause Fundraise Timeline
Manage Summary
3. Charge
“How can Make finance department
the Greater administratively and
Washington technologically efficient
Urban
Internal
controls
League
improve its Management & financial reporting
position to Cost-savings techniques
better fulfill
its mission
and Rely less on government grants
objectives?”
4. Financial Analysis
2007
Support & Revenue
Gov’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%
Analyze Recommend Implement
5. 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%
Analyze Recommend Implement
6. 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 Were fewer special
Why were
costs gone up if events held in 2008,
fundraising costs
programs have or was attendance
nearly eliminated?
been cut? lowered?
Analyze Recommend Implement
7. 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
Analyze Recommend Implement
8. Root Cause Analysis
Why is the
GWUL operating • Because expenses are higher
than income
at a loss?
Why are • Because we cannot bring in
expenses higher enough money to cover all of
than income? our programs
Why can’t we pay • We have too many programs
for all of our • We have not done enough
programs? fundraising
Analyze Recommend Implement
11. 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 Phase Phase
Analyze Implement
12. Downsize Programs
Objective Criteria
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?
Phase Phase Phase
Analyze Implement
13. Downsize Programs
Adopt A Framework
MoSCoW MOST
Must Have Mission
Should Have Objective
Could Have Strategies
Would Have Tactics
Phase Phase Phase
Analyze Implement
14. 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.
Phase Phase Phase
Analyze Implement
15. 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 boards
Phase Phase Phase
Analyze Implement
17. Donor Management
Software Criteria
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
Phase Phase Phase
Analyze Implement
18. Donor Management
Donor Perfect TM
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
Phase Phase Phase
Analyze Implement
20. 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
Phase Phase Phase
Analyze Implement
21. Pay It Forward
10 Years, 1% 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 10
Year 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 $ $ 6,5009,750
Year 9 $ $ 3,2506,500
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
Phase Phase Phase
$715,000
Analyze Implement
22. 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 10
Year 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
5 Year Total $ 568,750 10 Yr Total $ 3,575,000
Phase Phase
$3,575,000
Phase
Analyze Implement
23. Financial Analysis
2010(estimated)
Support & Revenue
Gov’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%
Analyze Recommend Implement
24. 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.
Analyze Recommend Implement
25. Timeline for Implementation
5th YEAR:
2nd YEAR: • Reevaluate
feedback
• Evaluate entirely
1st YEAR: position, make
necessary
• Pay it forward, changes
evaluate
6 Months: finances and
financial best
• Donor practices
Management
Immediate: , Financial
Best Practice
• Downsiz
e
Analyze Recommend Implement
27. Stakeholder Analysis
Employees
JobSecurity
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
TiffNeed to add AlternativesImplementation Not only are we going to tell you what to do, we’re also going to tell you how to do it
Tiff
Vrbanac
Vrbanac
Vrbanac
Violet
Violet
Violet
10%: $65,33720%: $130,675Other organizations have reported 80-200% increases in gifts in kind after switching to donor perfect. While we believe that target to be very optimistic, even a reasonable 10% increase results in an ROI of 1200-2500% for the first year.
