Published December 08, 2007 05:26 pm - The Wilson Boys & Girls Club is facing tough scrutiny from a high-profile funding source while it struggles to pay mounting debts and replace failing equipment.
5:26 p.m.: Wilson club struggles with debt; United Way may place club on one-year probation
By Barrett Newkirk
barrett.newkirk@heraldbulletin.com
The Wilson Boys & Girls Club is facing tough scrutiny from a high-profile funding source while it struggles to pay mounting debts and replace failing equipment.
The United Way of Madison County has recommended that the west-side youth agency be placed on a one-year probation, because it no longer meets United Way certification standards, president Nancy Vaughan said.
“They don’t have a plan to watch their finances,” she said. “They have a lot of debt. And how did they get in that debt? They got in debt by not thinking in the ‘big picture.’”
Vaughan also said inconsistencies with the nonprofit’s roster of board members was “a big red flag.”
The United Way has asked Wilson Boys & Girls Club to provide updated budgets, programming specifics and a board list by Wednesday.
Rodney Nichols, director of the Wilson Boys & Girls Club, said he would comply with the request.
“We have everything in place,” he said. “It has just been an issue in the way we’ve been reporting.”
Nichols said the United Way was too concerned with finances and doesn’t care that the Boys & Girls Club has increased services.
“Even though our funding has gone down, our programming has gone up,” he said. And an average of more than 60 children visit the club daily, despite problems with the building’s heat until last week.
“We do have heat right now,” Nichols said. “Wells Boiler Company has made repairs to one of the existing boilers to give us temporary heat at a reduced rate.”
While programs have remained strong, Nichols said, the club has not been able to pay down debt, largely because of declining contributions.
The debt has accumulated over the past few years to more than $176,000, Nichols said. It includes a mortgage of about $65,000, about $50,000 owed to Vectren gas company and about $28,000 in utility bills to the city. Other debts are owned for insurance, accounting and maintenance.
Wilson Boys & Girls Club also wants to replace its dilapidated heating system at an estimated cost of $135,000.
While in-kind gifts of equipment and volunteer hours have been strong, Nichols said, corporate gifts, individual donations and grants – including annual gifts from the United Way – have all declined in recent years.