SBA-PPP Amounts over $150K Local Clubs now public

[Unregistered]

You make a great point in favor of why these operations in some cases are defacto for profit business, not a standard non-profit. All Sports will survive this in time and recreational clubs will all come back with parent boards and volunteer coaches no problem. The business arms of these operations will also come back, you can't kill sports. If a 'club' shuts down for awhile it's not like the the sport is going away. Sometimes a cleansing or reboot can help create a new structure and purpose.

So what is your point exactly? You seem particularly focused on UPDX but then want to discuss (somewhat inaccurately) the similarities and differences between for-profits and non-profits.

If you are a concerned member, their are more direct ways to address your concerns.

If you are at another club, you might have the decency to identify what club that is, for comparisons sake.

[Unregistered]

So what is your point exactly? You seem particularly focused on UPDX but then want to discuss (somewhat inaccurately) the similarities and differences between for-profits and non-profits.

If you are a concerned member, their are more direct ways to address your concerns.

If you are at another club, you might have the decency to identify what club that is, for comparisons sake.

Not OP, seems the the UPDX brings this constant forum focus on themselves with their lack of judgement and poor decisions. If you are with that club I maybe you can provide them some proper guidance going forward. All the best.

[Unregistered]

Not OP, seems the the UPDX brings this constant forum focus on themselves with their lack of judgement and poor decisions. If you are with that club I maybe you can provide them some proper guidance going forward. All the best.

If you are going to take swipes at clubs you might consider identifying what club you are at.

[Unregistered]

The dumbest post of the year has been revealed. Congratulations.

Ignorance and being dumb are two different things but you managed to hit them both!

This is a safe place for people who eat glue.

[Unregistered]

This is a safe place for people who eat glue.

Finally UPDX secret sauce made public, appreciated.

[Unregistered]

If you are going to take swipes at clubs you might consider identifying what club you are at.

I'm with your club UPDX.

[Unregistered]

I'm with your club UPDX.

Hard to read that here, sorry to see it; all I can say is there are some good people trying to do the right thing.

[Unregistered]

“The Propel Nonprofits, a Minneapolis-based nonprofit whose mission is to build financially healthy nonprofits that foster community vitality, explains how an operating reserve works:“



As a local NPO you are damned if you build up a $300,000 reserve because somehow you are ripping your families off. “Why are my fees going into a slush fund?” If you don’t you are irresponsible. People are going to complain no matter what.

[Unregistered]

“The Propel Nonprofits, a Minneapolis-based nonprofit whose mission is to build financially healthy nonprofits that foster community vitality, explains how an operating reserve works:“



As a local NPO you are damned if you build up a $300,000 reserve because somehow you are ripping your families off. “Why are my fees going into a slush fund?” If you don’t you are irresponsible. People are going to complain no matter what.

We read that too and the best workaround was to pay 3 guys worth around 35k a year salary , 100k a year. In hindsight, it would have been better to keep building our reverses and pay them appropriate salaries...can't win no matter what we do. By paying these inflated salaries we miscalculated and sacrificed any chance of having reserves. We were hoping it wouldn't raise any memners eyebrows (salaries), but the truth always comes out.
Maybe it's time to reconsider what we're charging these families for 4 hours a week of soccer coaching and maybe a game on the weekend, back to the drawing board. Thanks for the brutal reminder

[Unregistered]

Just an FYI

Keeping cash in reserve for a "rainy day" may seem like a luxury, but maintaining a nest egg can ensure your organization's long-term financial health. Yet recent reports suggest that many claiming to be nonprofits do not have enough saved in their operating reserves.

The Propel Nonprofits, a Minneapolis-based nonprofit whose mission is to build financially healthy nonprofits that foster community vitality, explains how an operating reserve works:

An operating reserve is an unrestricted fund balance set aside to stabilize a nonprofit's finances by providing a "rainy day savings account" for unexpected cash flow shortages, expense or losses. These might be caused by delayed payments, unexpected building repairs, or economic conditions.

Reserves should not be used to make up for income shortfalls, unless the organization has a plan to replace the income or reduce expenses in the near-term future. In short, reserves should be used to solve timing problems, not deficit problems.

A commonly used reserve goal is 3-6 months' expenses. At the high end, reserves should not exceed the amount of two years' budget. .

However, each nonprofit should set its own reserve goal based on its cash flow and expenses. Organizations that have contracts or fees with regular and reliable payments don't need as much in cash reserves as organizations that rely on periodic grants, fundraising events or campaigns, or seasonal activities.

To be a viable operating reserve, there should be a board agreement and policy about how reserve funds can be used: When they can be used, who is authorized to use them, and how this is reported to the board.

Having at least 6 months of operating reserves is a rule of thumb for all business's profit or non profit. Non profits not having to pay any income taxes on revenues can reach these type of benchmarks much easier than for profits that pay up to 35% annually in income taxes.

Anyone that knows anything about non-profits understands they can't pay dividends or an ROI to investors. it's not how they are designed or structured. But any surplus (outside of earmarked reserves) monies can be used at their board discretion to be spent strictly on their membership needs--like purchasing a field for members, giving scholarships to at risk kids, buying uniforms and shoes for those that can't afford it etc.., etc...

That's why it's so important the Board of Directors takes control of clubs and keeps them solvent and alive after a crisis. Great learning lesson happening for everyone right now.

[Unregistered]

Having at least 6 months of operating reserves is a rule of thumb for all business's profit or non profit. Non profits not having to pay any income taxes on revenues can reach these type of benchmarks much easier than for profits that pay up to 35% annually in income taxes.

Anyone that knows anything about non-profits understands they can't pay dividends or an ROI to investors. it's not how they are designed or structured. But any surplus (outside of earmarked reserves) monies can be used at their board discretion to be spent strictly on their membership needs--like purchasing a field for members, giving scholarships to at risk kids, buying uniforms and shoes for those that can't afford it etc.., etc...

That's why it's so important the Board of Directors takes control of clubs and keeps them solvent and alive after a crisis. Great learning lesson happening for everyone right now.

Pre-covid, have gone through this with a couple of different treasurers as to what is the right amount of reserves for a youth club.

2 factors for youth clubs in a typical year: (i) they collect a great deal upfront, and (ii) much of their costs are variable. Unless they have taken on debt, their isn't much in the way of fixed costs. So financial types would often conclude that, generally speaking, large reserves for rainy day were not needed (in particularly because for much of the year you have more than 6 months expenses in the bank). . . saving for fields on the other hand, was consistently seen as a need, because of the large future outlay.

Covid hit at a particularly bad time - at the low point in cash for most clubs and interrupted ability to collect in spring for next season in a typical way.

Don't disagree with your conclusion, just noting that the clubs I am familiar with have spent a reasonable amount of time thinking about adequate reserves; covid definitely poked some holes in basic assumptions.

[Unregistered]

Pre-covid, have gone through this with a couple of different treasurers as to what is the right amount of reserves for a youth club.

2 factors for youth clubs in a typical year: (i) they collect a great deal upfront, and (ii) much of their costs are variable. Unless they have taken on debt, their isn't much in the way of fixed costs. So financial types would often conclude that, generally speaking, large reserves for rainy day were not needed (in particularly because for much of the year you have more than 6 months expenses in the bank). . . saving for fields on the other hand, was consistently seen as a need, because of the large future outlay.

Covid hit at a particularly bad time - at the low point in cash for most clubs and interrupted ability to collect in spring for next season in a typical way.

Don't disagree with your conclusion, just noting that the clubs I am familiar with have spent a reasonable amount of time thinking about adequate reserves; covid definitely poked some holes in basic assumptions.

Since the neighborhood clubs have so few fixed costs and nearly 70 to 80% of their annual budgets goes to cover the costs;direct & indirect of labor, be it contracted or w-2 + health insurance they should be able to layoff nearly all coaching staff. Especially when nobody's playing soccer in the metro area since last March. With OHA Baseline & Phase 1 guidelines for Soccer being quite restrictive cutting salaries for any 'coaches' seems like a great way to slow their monthly burn rate and withstand this crisis. Their ace in the hole is they have an unpaid volunteer board of directors that will keep the club operating, which is awesome if you think about it.

[Unregistered]

Since the neighborhood clubs have so few fixed costs and nearly 70 to 80% of their annual budgets goes to cover the costs;direct & indirect of labor, be it contracted or w-2 + health insurance they should be able to layoff nearly all coaching staff. Especially when nobody's playing soccer in the metro area since last March. With OHA Baseline & Phase 1 guidelines for Soccer being quite restrictive cutting salaries for any 'coaches' seems like a great way to slow their monthly burn rate and withstand this crisis. Their ace in the hole is they have an unpaid volunteer board of directors that will keep the club operating, which is awesome if you think about it.

You seem to know alot - would be a wonderful time to start your own soccer club.

[Unregistered]

You seem to know alot - would be a wonderful time to start your own soccer club.

Most of the club boards will still be around after all the paid staff have moved on to the working world. Some time in the future, many civic minded people will be needed to resurrect the day to day operations of these shuttered local clubs. That rebuild will be a thing of beauty let's all get ready to dive in at the ground floor level and begin to re imagine 'club' soccer can become... donating our time, not our paychecks for the kids.

[Unregistered]

Most of the club boards will still be around after all the paid staff have moved on to the working world. Some time in the future, many civic minded people will be needed to resurrect the day to day operations of these shuttered local clubs. That rebuild will be a thing of beauty let's all get ready to dive in at the ground floor level and begin to re imagine 'club' soccer can become... donating our time, not our paychecks for the kids.

Will take 3-5 years to get ramped back up to where they were last year but that’s no big deal. Let’s get rid of all the coaches and get this restart moving.