'Our larger YMCAs need additional support from Congress': YMCA CEO

YMCA CEO Kevin Washington joins Yahoo Finance’s On The Move to discuss how the organization is not only adapting, but responding to the coronavirus crisis.

Video Transcript

ADAM SHAPIRO: Amazing what we take for granted-- the YMCA, for instance. 500,000 men and women who work at 2,600 facilities across the United States. And, of course, essentially they've had to shut down to help us understand what's going on at the Y and why they're in a great deal of difficulty right now is Kevin Washington. He is the CEO of the YMCA. And he's joining us on the phone. Just want to remind you, sir, to unmute your phone, I believe. You have to hit star six to do that.

But what stuck out to me, because I think so many of us have some kind of relationship with the Y in one form or another, whether your kids go to daycare there, or whether you go to lectures at the Y or whether you work out at the Y is that just in April, operating revenue's going to be down $400 million. And you have suggestions about what Congress can do to help the Y nationwide get through this. Can you share that with us?

KEVIN WASHINGTON: Thank you for having us. The first thing I'd like to say is that the first bill that Congress passed did provide some opportunity for some of our YMCAs, particularly those YMCAs that have less than 500 employees. It gave them that pro-- the paycheck protection program, provided some support in that arena. However, we know that some of our larger YMCAs, that's 500 employees or more-- some of our larger YMCAs that are doing great work in communities need additional support for Congress.

So here's what we'd like them to consider. One, as they consider COVID for the next stimulus bill that they put together is to ensure that there's a pot of money specifically for nonprofits, not just the YMCA, but all nonprofits. As you may have mentioned, the nonprofit sector is the third-largest employee in the country-- the third-largest employer in the country.

So that is a significant number of people who currently are out of work in the YMCA alone. We furloughed somewhere between 75% and some wise as high as 95% of their people. So we need congressional support too. We're still doing effective work in communities. We have over 600 YMCAs that are doing central child development services for first responders.

We're doing food delivery for [? rightful ?] kids in communities who have not had the opportunity because they go to school and get that work. We're partnering with Red Cross to do our blood bank and blood banks in our YMCA. So Congress, we need them to put additional resources in this COVID, the bill coming up, to ensure that nonprofits-- all nonprofits have an opportunity to get resources.

ADAM SHAPIRO: You know, you mentioned a $60 billion carveout specifically for nonprofits. Before the crisis, nonprofits were taking a hit because a tax reform was the Y, one of the organizations that was getting hit.

KEVIN WASHINGTON: Absolutely. We saw because of the bill that was passed that limited the deduction for contributions. And I would also add that they did-- they restored some of that. But they made a limit up to 300. We want them to make the limit higher and make it above the line, not below the line. But YMCAs, as so many other nonprofits, have saw a drop in individual contributions.

You know, it's not those people who have significant resources that are giving. It's those individuals. And that is the ones who support YMCAs, YWCAs, Girl Scouts. Those are the ones that are giving $100 to $200, $300 who we saw a significant drop in revenue. Somewhere between 8% to 10% of contribution have been lost because of the tax bill that was put, I think, 2018.

- Kevin, even if you-- even as you go through these struggles with your operation, I know the YMCA's been using or outsourcing a lot of your facilities there for the response to the crisis. In some cities, you know, YMCA facilities being used to house homeless people. Can you talk about the conversations you've had on the state level, as well as the federal level in terms of how you-- how you can be of help and how you see some of these facilities being used?

KEVIN WASHINGTON: Absolutely. I can specifically talk about what our folks in Chicago are doing. They have changed several of their facilities to house some of the homeless and vulnerable populations. In LA-- in LA, Los Angeles, they're using their facility to ensure that folks have access to showers and things of that nature.

In New York, they're doing some of these same things for some of the issues that are happening in New York for some of the vulnerable population. So they are really assisting in this particular crisis. YMCAs and other nonprofits are really community assets. They show themselves up in all kinds. And particularly in times of need, like now, they're standing up to be a part of that.

We want to make sure Congress understands that and make sure they put in additional resources in that $60 billion, because once we get on the other-- YMCAs and other nonprofits run on a slim margin, somewhere between 2% to 3%. And we need additional resources from Congress. And we hope that they will put an impact that $60 billion set aside for nonprofits to help them get through what we all know is an unprecedented time and nothing that we've seen before.

We are here to be part of the community. We've been here forever. I ran the Boston YMCA for a number of years. And I know I would be furloughing somewhere between 2,000 to 3,000 people today under the circumstances. So we're looking forward to being a partner with Congress and a partner in the communities that we serve so evident, so well over the years. And all nonprofits are in this.

ADAM SHAPIRO: Yeah, and like I said, as we were going into the introduction to you, so many of us take things for granted and the Y and the 500,000 men and women who make the Y functional throughout the United States.