Sound business decisions are vital for sustainability and growth. But what happens when you’re faced with balancing community needs with an organization’s bottom line?
On March 16, 2020, when businesses and schools began shutting down due to COVID-19, we faced this unexpected scenario.
As the largest licensed childcare provider in Orange County, YMCA’s programs were imperative to parents who were essential workers. Our management team immediately answered the most important questions: Who are we? What are we here for? And, if we closed now, then why do we even exist?
Amid the COVID-19 crisis, we did not have to look at our finances and say, “Can we afford this?” because the groundwork was already laid by years of financial stewardship, the generosity of donors and a dedicated staff.
We knew we had the resources to ride out the storm for a prolonged period, a fact that helped our board of directors maintain confidence and support for our plans to stay open. But staying open also meant a 50% financial loss and furloughing 1,000 staff members due to stay-at-home orders since we were only serving the children of essential workers.
Now, if you would have asked me if this was the best business decision when I started 15 years ago, I may have had a different answer. When I came aboard during the 2007 recession, the YMCA of Orange County was losing more than a million dollars per year. I knew that many changes had to be made, and these changes led to years of financial growth in revenue that peaked at nearly $50 million before the pandemic. Â
However, in March 2020, once we made the decision to stay open, the results were immediate and visible. Our staff rallied. Never have they felt so needed and purpose-driven. The decision also further reminded me of how much this organization benefits Orange County.
5,000 Children Daily
Before the pandemic, YMCA OC was caring for 5,000 children daily. Within just a few days, that number dropped to less than 200. Without our services, essential service workers, including police, firefighters, nurses and doctors, were unable to report to their jobs.
YMCA OC took swift actions that had an immediate impact:
•  Opened two “pop-up” childcare locations for the children of healthcare workers in unique locations—one in an empty hotel in Orange and one on a college campus in Irvine—providing nearly 2 million hours of care to frontline workers.
• Gave more than 1,500 children of frontline essential workers a safe haven to get help with their schoolwork, virtually and through a safe in-person all-day program.
• Developed and implemented a new distance learning support program to serve 1,200 students across 10 school districts, working closely with the districts to find out exactly what they needed and how we could fill the gaps.
• Converted the Fullerton Family YMCA fitness facility’s gymnasium to a respite area for workers at an adjacent hospital, with portable walls, cots and shower facilities.
A Sense of Pride
Our entire organization felt a sense of pride at what we were able to achieve. And our donors and grantees felt the same way as they contributed $1.3 million to our cause in 2020 alone.
We followed rapidly changing federal, state and local public health protocols to ensure the highest level of health and safety possible. As time went on, our decision was further fortified by the numerous requests from for-profit and nonprofit organizations, school districts and other YMCAs for logistical advice on how to open safely.
My answer: Know your purpose. Don’t be afraid. Use the many resources available, take a common-sense approach and always remain confident in and true to your mission.
A lot of people ask me: How did you know this was the right decision? How were you so successful in staying open? And I say: The data tells us that we served a lot of people and lost 50% of our revenue. But the overwhelming response of gratitude from the community tells us much more than any numbers could. The confidence we gained, and the lessons learned during the pandemic have provided the impetus we will now use to grow this organization for the immediate future and beyond. Our strength lies in our ability to collaborate, to listen and be open to new ideas from everyone, not just one leader. Our people, representing all different political spectrums and backgrounds, are dedicated to always doing the right thing, no matter the sacrifice.
Good things come with a price—and organizations must decide what their priority is. For the YMCA of Orange County, our first priority is always doing the right thing, no matter the cost.
Editor’s Note: Jeff McBride is the president and CEO of the YMCA of Orange County, where revenue for the 12 months ended June 30 fell 38% to $27.4 million, ranking it No. 21 on last week’s Business Journal’s annual list of the largest nonprofits. McBride has served the YMCA for over 35 years, holding positions from welcome desk to aquatics director to CEO. The Business Journal this week is highlighting our annual list of Companies that Care, starting on page 27.
