State of the Ephraim Yacht Club
The EYC is in great shape!
In an economic environment where many not-for-profits, charities, and private clubs are struggling to avoid membership declines, service cuts, debt, and financial losses, the EYC is financially healthy and has a large and loyal membership.
Every EYC member can be proud of the part that he or she plays in helping the EYC achieve its mission, but special thanks must go to our scores of unpaid member volunteers. The EYC could not survive even a year without the countless hours of work donated by our volunteers — officers, directors, committee members, parents, juniors, and other volunteers — to make the EYC better for everyone.
The EYC is debt-free, enjoys a favorable long-term lease, and has a friendly relationship with its landlord, the Village of Ephraim. The EYC’s pier and clubhouse are in good condition, thanks in large part to many donations in the past by generous EYC members.
At the EYC Board of Directors meeting on April 16, our new treasurer, Deb Ritter, reported that the EYC is financially healthy.
In our fiscal year ended October 31, 2010, the EYC had $135,824 in revenues and $118, 162 in expenses. Our chief sources of revenue in 201o were lessons ($60,950), membership dues ($42,094), slip rentals ($11,605), donations ($10,505), and profits from merchandise sales ($5,133). Our major expense categories were payroll ($55,232), non-personnel expenses including supplies, boat repair, and printing ($27,226), occupancy expenses such as utilities, clubhouse and dock maintenance ($14,026) and other miscellaneous expenses such as insurance, trophies, and organizational dues ($13,701).
As of October 31, 2010, we had $63,071 in cash and only $440 in current liabilities. The Board of Directors believes that this amount of cash, which represents more than a year’s fixed expenses, is an adequate operating cash cushion. As of April 16, 2011, with most of the 2011 membership dues collected and a good start on 2011 lesson registrations, we had over $114,000 in cash on hand.
Our membership chairman, Nancy Claypool, reported that as of April 16, 2011, for the membership year beginning June 1, 2011, our paid membership is 208 Family members, 85 Senior members, and 25 Single members. Those numbers include 20 new Family, Single and Senior members for 2011! In addition, for 2011 we already have 26 Student members.
A few 2o10 members have not yet renewed for 2011, so we expect to add additional Family, Senior and Individual members as the May 31 membership dues payment deadline approaches. We will add numerous Student members as lesson sign-ups continue for the 2011 season.
Because sailing is equipment-intensive, the EYC frequently must incur fairly large capital expenses. Already in 2011 the EYC has purchased new sails for its Laser and Flying Junior fleets, and an additional Shore Station boat lift. In the near future we need to replace our fleet of eight Flying Juniors, and replace our 17-foot rigid bottom inflatable motorboat, the Uff Da. Together these two capital expenses may exceed $100,000.
Because the EYC historically has encouraged broad membership and participation by keeping dues as low as possible, the EYC has not built up a fund to pay for future capital expenses. Instead, the EYC has relied on donations and fundraising campaigns in order to afford major capital expenses, such as upgrades to the clubhouse and dock which were completed in 2008.
The EYC Board of Directors would prefer to avoid dues increases or special dues assessments to fund capital expenses. Beginning in 2011, the EYC will annually budget a contribution from its cash account to a capital expense fund, which should help reduce the amount of donated funds which the EYC must seek to pay for future capital expenses.
The EYC always welcomes your donation of cash, equipment, or appreciated securities. If you wish to volunteer at the EYC or donate to the EYC, please contact EYC Commodore Marsella Fults [email protected].
Remember, because the EYC is a charity under section 501(c)(3) of the Internal Revenue Code, your donation is tax-deductible.