Annual Report at Neighborhood House Community Center

2012 was my first complete year at Neighborhood House since being hired as Executive Director in July of 2011. As I look back on 2012, we have accomplished a great deal for our Community Center. If you are not familiar with Neighborhood House, it is important to understand our position over the last few years.

  • In 2010 Neighborhood House suffered an operational loss of -$42,585
  • Due to cash flow problems in 2010, Neighborhood House borrowed the maximum available on our line of credit from the bank. Our debt grew to $45,000.
  • Neighborhood House stopped providing programs in 2010
  • The City of Madison reduced funding from $82,968 in 2010 to $39,070 in 2011. A net loss in funding to Neighborhood House of $43,898. In addition, the City indicated that future funding was not guaranteed, and Neighborhood House would need to reapply for ANY City funding in 2012.
  • At the conclusion of 2010, the Board of Directors assumed all operations at Neighborhood House
  • 2010 and 2011, Neighborhood House was only able to pay interest on their debt and there was concern from City staff, NH accountants, and our Board that Neighborhood House may become bankrupt, and be forced to sell our property to meet our creditors.
  • In July of 2011, the Board of Directors hired Dan Foley, new Executive Director at Neighborhood House
  • We immediately addressed operational issues to increase revenue and control expenses.
I am happy to say that we have many positive changes to report! Thank you for all of your support.

  1. We have reestablished a positive relationship with the City and have restored City funding at $50,130. This is an $11,070 increase over 2011. City staff are very supportive of our present direction and success at NH.
  2. Donations generated by Neighborhood House have increased 500%. In 2010, NH raised $11,080 in donations. In 2012, NH raised $54,816 in donations. This is the largest total of unrestricted donations in recent history at NH.
  3. Our cash flow has improved dramatically, and we have paid off our entire debt of $45,000 in 2012. Neighborhood House is now debt free!!!
  4. We have begun to rebuild our infrastructure to reintroduce programs at NH. A part time Program Director was hired in fall of 2011. Our menu of programs will continue to increase.
  5. We have begun to rebuild our infrastructure to address deferred maintenance at NH. (New AC upstairs, new furnace upstairs, patched and repaired entire roof, repaired gym furnace (hasn’t had heat for 3 years), electrical updates, painting, door locks replaced, etc.
  6. The approved budget for 2013 continues to expand operations and programs at Neighborhood House and still maintains a positive bottom line!
  7. We have established collaborations with the Morgridge Center, UW School of Medicine, UW Service Organizations, UW Division of Continuing Studies, Hamilton Middle School, and many other organizations.
  8. Neighborhood House has pulled back from the edge of bankruptcy, and is now positioned well to meet the challenges of the future!
The following are some details of our accomplishments in 2012.

Our initial task was to reestablish a positive relationship with the City of Madison and develop a plan to secure future funding for Neighborhood House. We developed a budget for 2012 and submitted an application for 2012 funding from the City. We presented to numerous City Committees and shared our vision for recovery and stability at NH. The plan was supported by numerous people who have a long history at Neighborhood House. The City received our plan positively and restored $39,060 to our budget for 2012. As we moved into 2012, the City observed our positive budget and efforts to rebuild NH, and gave us an additional $11,060. Our City funding had increase to $50,130.

I hired Amanda Ryan (part time 20 hrs. per week) to reestablish programs at NH. As mentioned previously, programs were discontinued in 2010. Amanda has developed and implemented a diverse menu of programs. We have offered:

  • Summer Day Camp
  • School’s Out Fun Club
  • Speaker Series
  • Movie and Meal Night
  • Kids Yoga
  • Parent and Child Yoga
  • Comics and Cartoons Art
  • Afterschool Mentoring/Tutoring Program
  • Ice Cream Social
  • Halloween Party
  • Holiday Party
  • Tween Movies
  • Youth Basketball
  • Girls Scout Events
  • Senior Citizen Events
  • Adult Lunch Time Yoga
Our plan for the future is to continue to rebuild our infrastructure and to grow our menu of programs offered at Neighborhood House.

We also established a system to invoice (and track) all groups that rent our facility. This system has allowed Neighborhood House to have a more accurate system to track use of our building and also generate revenue. This invoice system has generated approximately $13,000 new revenue for NH in 2012.

We have placed a special emphasis on increasing donations to NH in 2012. In 2010, donations to NH totaled $11,080. This past year, donations to NH have increase to $54,816. This increase in donations is almost a 500% increase over donations in 2010. This significant increase reflects the largest amount of donations raised at Neighborhood House to a record level.

Total revenue has increased dramatically in 2012. In 2011 our total revenue was $167,710. In 2012, total revenue grew to $191,090. This is an increase of over 16%. This increase in cash flow has allowed Neighborhood House to retire their entire debt of $45,000. This is the first time in many years that NH is debt free!

Challenges for the future

I am excited about our future. We need to continue our efforts to rebuild Neighborhood House

  1. We need to focus on Board Development. NH must identify and secure individuals that possess the skills and experiences that will strengthen the Board. The challenges of the future will be great and our Board needs to secure those individuals that will successfully guide and direct our center into the future. Our Board must also represent the cultural diversity of our participants.
  2. Develop a formal Strategic Plan to guide and direct our Community Center.
  3. Reopen our food pantry. Note the food pantry was closed in 2011 due to:
    • Loss of lead volunteer due to automobile accident (Food Pantry was run 100% by volunteers). No other food pantry in the entire City is operated 100% by volunteers.
    • Significant annual financial loss that was contributing to NH overall negative financial position.
    • Food spoilage. The pantry is housed in a non-air-conditioned room that frequently exceeds 100 degrees in the summer. Presented a serious health risk!
    We need to develop a plan to address the closing issues, and reopen our food pantry
  4. Continue to rebuild programming to meet the needs and interests of our community.
  5. Continue to address deferred maintenance at NH.
  6. Continue to rebuild our infrastructure to assure safety and appropriate use of our facility.
Sincerely,

Dan Foley
Executive Director Neighborhood House

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