METNY Leadership Conference

March 18, 2009

Session: Bridging the Budget Gap

The “Bridging the Budget Session” was presented by Lisa Harris Glass, the
Executive Director of the New Jersey Region of United Synagogue of
Conservative Judaism. Lisa had previously served in the international Board of
Governors and local Board of the North American Association of Synagogue
Executives (NAASE). Lisa has received NAASE’s professional accreditation,
Fellow in Synagogue Administration.

This session was attended by approx. 25 representatives from METNY Region

synagogues. Items discussed included, but were not limited to examining new
avenues for synagogue income, development of a strategic plan for alternative
income sources, examining of your synagogue’s current staffing, utilizing
previously restricted synagogue funds to “Bridge the Gap”, reaching out to your
more influential members for additional “assistance”, multi-synagogue
collaboration for programming and facing the possible realities of mergers.

The session, scheduled for 90 minutes, could have gone on for hours.

I was also made clear by Lisa, that should any synagogue have questions relative to
this subject, they should feel free to call her directly.

Albert Jay Krull

METNY Vice President
Moderator
Bridging the Budget Gap:201

Facilitator: Lisa Harris Glass, FSA

Executive Director
The United Synagogue of Conservative Judaism
New Jersey Region
1090 King Georges Post Road
Suite 1003
Edison, New Jersey 08837
(732) 738-4301
glass@uscj.org

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SEASON
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13 THINGS TO CONSIDER – OLD SCHOOL

A. REVIEW EVERYTHING:

1. Send items out for quotes. Even long term vendors. It keeps them on
their toes and assures your membership that you are seeking
competitive pricing.

Printing, insurance, telephone, gas, credit card processing fees,

landscarping, copier and postage machine leases, office supplies,
security, extermination servies, preventative maintenance contracts for
HVAC. Have you looked into rebates for energy efficient lighting,
insulation, etc. Kiddushes.

2. Have you attempted to renegotiate any mortgages or loans that the

synagogue has.

3. What unrealized income do you possess?

Cemetery plots, yahrzeit plaques, simcha wall plaques, tree of life.

4. Your fee structure.

Dues, Tuition, bar/bat mitzvah fee. Are you competitive?
What add-ons are a possibility for you?

B. EXPLORE NEW AVENUES:

1. Get some O.P.M. (Other People’s Money).

a. Scrip - Scrip is a substitute for money in the form of negotiable
certificates or cards that can be used like cash to purchase
products or services from merchants who have issued them.
Scrip can be used to purchase anything from groceries, fuel,
clothing, toys and cosmetics to entertainment, electronics, home
improvement, or household services. (What is the potential of
such a program? If a family spends an average of $300 per
month on groceries through the scrip program that would
provide a benefit to your synagouge of $15.00 (or 5%). Over
three months that’s $45. Over a year that’s $180. Multiply that
 times 200 families and that’s $36,000 at no cost to the
synagogue or extra cost to the person.)
b. U-promise or www.we-care.com
c. Virtual Auction
d. Underwrite items out of your budget
e. TD BANK Affinity Program
2

2. Can you conduct a large campaign to create an endowment fund?

3. Are you untilizing planned giving vehicles such as Wills & Bequests?

4. Fund raisers. Let’s talk . . . .

5. Maximize what you are already doing. High Holy Day Appeal. Start
now.

6. Have you taken advantage of USCJ programs to reduce costs or bring in

money like the ADP program, Staples, Web Hosting.

The United Synagogue of Conservative Judaism

Budgeting 201
by Lisa Harris Glass, FSA; Executive Director, New Jersey Region
 3

THE NEW REALITY

A: THINGS TO CONSIDER

1. “Doing more with less.” A familiar refrain but is it realistic? The real

question is how do we “do less with less?” This is a strategic question

about what programs to keep, and do them as efficiently and effectively

as possible, and what programs to exit, close, or transfer to someone

else.

2. If you have to trim, trim back to your mission.

a. Spend time discussing your mission and connecting with

stakeholders.

b. Engage the board and staff in a discussion about the

organization’s mission.

i. Ask what has changed in your area or field.

ii. Review your mission. Does it still respond to today’s needs and

environment?

iii. Evaluate each activity or program as it relates to and

contributes to the mission.

iv. Evaluate the impact and quality of the progams and services you

offer:

-- What do you do best?

 -- Which programs are of unique value to the community?

3. Set priorities and make choices. Assess your programs and make the

tough, but necessary choices.

The United Synagogue of Conservative Judaism
4
Budgeting 201
by Lisa Harris Glass, FSA; Executive Director, New Jersey Region

Low contribution to High contribution to

Mission Mission
Low use of Is this a fit? Keep or expand?

Resources
High use of Needs to be Core services -

reconsidered
Resources Can it be done differently

or eliminated for less?

4. Develop strategies, with four basic categories:

a. Do the same work with less

b. Do the same with new funding

c. Do less of the work

d. Do the work differently. Many effective changes start with a new

idea or approach.
The United Synagogue of Conservative Judaism
Budgeting 201
by Lisa Harris Glass, FSA; Executive Director, New Jersey Region

B: WHAT TO DO

a. Have you sought Board permission to use any and all available funds

belonging to the synagogue to get through the rough time. Ask donors who

are giving restricted gifts if they are willing to unrestrict usable monies or

even a portion of the corpus of the fund for 2009. Afterall, what happens

to the restricted gift when the synagogue closes due to insolvency?

Consider asking past donors to make payments earlier of previously-made

pledges.

2. Staffing:

a. Have you reassessed staffing and elminated or reduced non-

essential personnel. (Board exercise: define non-essential)

b. Have you frozen or reduced staff salaries. (How do you approach

contractual staff on this topic?)

 c. Have you investigated outsourcing services (such as bookkeeping

and/or custodial services).

3. Reach out to influential members (some jobs are recession proof):

a. Make sure you have a strong message that you can communicate

easily, in writing and verbally, both to use with donors and with

the public at-large. BE POSITIVE to the mission and the future.

People support winners. Know why your mission is worth saving.

The United Synagogue of Conservative Judaism 6

Budgeting 201
by Lisa Harris Glass, FSA; Executive Director, New Jersey Region
b. Keep your key funders in the loop (they should not find out what

is going on through the grapevine!)

c. Would they be interested in paying for specific programs to

remove costs from the budget.

d. Who could you borrow from?

4. Obtain credit lines from the bank while they are available and USE

THEM. (Some banks are closing lines that are in place but not used. If

you think you have a credit line you should check to make sure your

bank has not recalled it.)

5. Get out of the box:

a. Reconsider how programs are delivered.

b. Could you collaborate with other organizations on programs.

(lecture series, adult ed) Don’t be afraid to try. Joint ventures can be

a great thing for your organization and its long term viability. Joint

grant writing.

c. Consider mergers - If it becomes necessary to merge

the organization to keep the programs alive, this might

be the time
d. Share staff. to take
(Could that
you shareaction. Could you merge your
IT, bookeeper?)
schools (preschool, religious school, hebrew high school),
e. Save dollars by outsourcing programs instead of using staff. (Could
share your building and thereby your overhead costs?
you outsource some administrative work, cleaning and custodial?)

f. Develop new revenue sources from contracts or earned income

ventures. (Initiate earned income ventures that fit with your

organization’s mission. For example, HVAC, phone, after-school

bridge program, summer camp, school break programs.)

g. Ask allied organizations to take over programs that are a low-

priority fit with your mission. Inform that agency that you are

stopping that service so it can pick up the ball. (social worker,

nurse, etc.) It is important to use communal resources wisely.

h. Don’t be afraid to ask for anything you need. Whether it’s an in-

kind donation, or to a contributor that said “no” the first time.

 i. Could you barter? Directly – membership for x; or indirectly. What

businesses are your members in? Would a member accountant take

on the accounting of the your landscaping company so the

landscaper can donate their service to the temple?

j. Look for creative and innovative ways to raise money.

The United Synagogue of Conservative Judaism

Budgeting 201
by Lisa Harris Glass, FSA; Executive Director, New Jersey Region
8

6. Put new initiatives on the back burner… unless you know how you will pay

for them in a sustainable way.

7. If you were planning a capital campaign, consider moving back its starting

date; if your capital campaign is in progress, consider a temporary pause in

making requests.

8. Develop contingency plans for different budget models (e.g. 10%, 25%

cutback budgets) so you have a back-up plan if past funding sources don’t

come through. Use cost/benefit analysis to determine what to reduce and

what to maintain.

9. Communicate with board and staff about what is going on.

10.Use volunteers wherever you can.

 BIBLIOGRAPHY

Non-profit Harvest newsletters November 26, December 9 and 15, 2009

NY Nonprofit Executive Directors Network Newsletter Sunday, November

16, 2008

Managing People.blogsport.com/November 5, 2008

www.ccl.org/eadership/enewsletter/2002

The United Synagogue of Conservative Judaism

Budgeting 201
by Lisa Harris Glass, FSA; Executive Director, New Jersey Region