Restructuring in D.C.: Boys & Girls Clubs cutting staff and programs because of debt.(MANAGEMENT)

The Boys & Girls Clubs of Greater Washington (BGCGW) will cut staff by 10 percent and close at least four of its clubs as part of a restructuring to tackle its $7 million deficit.

"It's very important to us to be as transparent as possible. These are tough times for everyone but we want to make sure that people understand we are very mission-focused in this restructuring," said Leah Lamb, BGCGW chief development officer.

Due to the restructuring, 16 percent of full-time employees and 26 percent of part-time employees face either job elimination or transition from full-time to part-time status. All executive staff face 10 percent salary reductions and all staff, including senior management, will be furloughed for 26 days between April 27 and the end of the year.

BGCGW, which serves a 75-mile region including Washington, D.C., northern Virginia and Maryland and approximately 8,000 members, will close four of the 22 clubs and sell some club facilities, such as the Eastern Branch. Proceeds from the club facilities will be used to pay off debt and improve current operations.

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One property, the Frank R. Jelleff Branch, is included in D.C. Mayor Adrian M. Fenty's fiscal 2010 budget proposal for $15 million, at $3 million over five years. The City Council has yet to approve the sale and BGCGW is currently looking for other interested parties for that and other properties on the market.

"We don't want to be landlords. We don't always have to be in our own freestanding buildings to deliver quality services," said Lamb. "We found out that, especially when our buildings get older, there are problems that arise that we constantly have to focus on. This takes the focus away from our core business."

She said the organization wouldn't completely abandon owning facilities and BGCGW plans to expand its reach through several partnerships with local schools and park and recreational departments.

Lamb explained that membership, service area and facility space were factors in determining which facilities would close. Some club facilities were built for recreation purposes while BGCGW's mission has come to encompass other programs, such as education and technology.

"We have evolved into an organization that has a more holistic approach and we do have a heavy focus on education and the arts and character and leadership development. So we need space that is conducive to all of it," she said.

The organization is also slimming programs. Lamb said the organization had more than 100 programs before the restructuring. That has been cut to approximately 40. Lamb expects the cutting to continue, down to approximately 25 core programs. She said BGCGW wants to stick with programs with quantifiable results and consistent programs for the chapter that can be refined for a specific community's needs.

Lamb hoped the organization would diversify its revenue stream through more sponsorships and grants for the future--and that having measurable programmatic results should help build those funding relationships.

"We think that going through a process in which we have more measurable outcomes and impact will only help in articulating our value add to the funder," said Lamb. "We know that our stakeholders are looking for measurable impact and we want to be able to prove the difference we are making in the lives of the youth we serve."

Organizations must always look at the relevance of their business model and when necessary, they must make changes to be able to have the results that they want, Lamb said. "I think this is a very strong restructuring plan and our funders have embraced it," she said.

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