BUDGETING: SAME PAGE, SAME PATH
A Look at the Cleveland County Family YMCA

As a part of its budgeting process, the Cleveland County Family YMCA staff, volunteers, and board members build teamwork and unity. By implementing a process that is efficient but also flexible, the Y has been able to renew focus on its mission as it faces new and daily membership challenges.

 

Budgeting Process | Budgeting Challenges | Budgeting Benefits
PLUS! Budgeting Terms to Know | Back to Budgeting Resources Home

 

THE PROCESS: Accountability is Key

With 15 participants playing a part in busy budget planning, for the Cleveland County Y, moving in the same direction from the start is top priority. “We have lots of people playing active roles in planning. Ownership and teamwork are essential,” says Alan McWhirter, VP of Finance for the association. “A few unpredictable and last-minute things always happen, but we aim to get ahead of the game and are getting better all the time.”

To get everyone on the same page, budgeting guidelines are distributed well in advance of planning. They set clear expectations and schedules, encouraging staff to stay on target, and mapping out procedures for revisions and negotiations. “We’re trying to get away from ‘crunch time,’” Alan explains.

The YMCA uses a decentralized process to ensure staff involvement. “We’ve followed a centralized model before, but it wasn’t working to get people involved. The larger we got, the less effective centralized budgeting became,” he says. “Decentralized budgeting holds staff more accountable, and staff buy-in is very important.”

While the Y currently implements an operating budget by area, Alan says moving to zero-based is a goal, “because it will hold staff even more accountable and require more planning details.”

THE CHALLENGES: Necessary Adjustments

With new competition in town, the YMCA is “taking a look at membership and how to keep members engaged,” says Alan. Even as the VP of Finance, he is regularly giving facility tours.

“New membership and member retention are everyone’s jobs,” he says. “We are having to find better ways to connect with people and are getting aggressive with our pricing.”

Juggling everyday membership challenges during budget season can prove complicating. “Budgeting is time-consuming, especially if done correctly, but it is worth the effort,” Alan says. “As staff members, we do our part to provide the board and volunteers something reasonable to review. We get everything as ready as possible, meaning we’re setting the budget up for success.”

To offset other challenges, Cleveland County constantly evaluates its process.

“We ask staff what tools they need to meet their goals, and are trying to cut down on the number of meetings we hold,” he says. “Our strengths are that everyone is on deck, and everyone is willing to do his or her part.”

THE BENEFITS: Always Ready to React

“Goals and objectives drive our budget,” says Alan. Each director at the Y has a set of “Big 6” goals. “Having six goals instead of 26 goals means we know what we need to do to get where we’re going, and we’re being reviewed on our goals every quarter.”

In addition, branches meet together regularly to share ideas. “If something is working at one branch, we’ll try it at another branch,” he says. “As an association, we’re flexible and good at change. We’ve had to be, because we face new challenges and new projects all the time.”

NONPROFIT BUDGETING TERMS TO KNOW

1. Budget
An amount of money that is planned to spend on a particularly activity or resource over a certain period of time.

2. Forecast
The process of projecting future income and expenses.

3. Decentralized Preparation
The budgeting process is initiated with different departments preparing their budget requirements, then follows an approval process.

4. Centralized Preparation
The budgeting process is initiated and completely managed by the budget office, though others may be involved with data gathering and approvals.

5. Zero-Based Budgeting
Every department function is reviewed and all expenditures must be approved with no reference made to previous expenditures. The baseline is zero rather than last year’s budget.

6. Operating Budget by Area
Program and department managers are responsible for preparing annual draft budgets for their areas with review and revisions by CFO and CEO, and final approval by the board.