Eighty days ago US Squash shut down nearly all of our programs due to the novel coronavirus. I am proud of the US Squash staff for their flexibility and professionalism, and thankful to the US Squash Board of Directors for their time, advice and generosity throughout this crisis.
During the last two months, I worked with the senior management team, a crisis-focused Finance Task Force, and our Finance & Audit and Executive Committees to evaluate our financial condition, determine what needs to get done operationally, review our budgeted investments, and craft an approach looking ahead towards a very uncertain future. I am grateful for the guidance and support we have received during this effort.
Due to the rigor in our process to determine how to proceed, and thanks to leadership of these committees, we believe we have a balanced plan on how best to preserve the organization, and its core asset – the people working here.
US Squash applied for, and secured, Payroll Protection Program (PPP) funds which have provided an important bridge to our next phase of enduring this pandemic. Broadly speaking, half of our revenue is event-related, and events are not happening for the foreseeable future. About one quarter of our revenue is from membership based, and about one quarter is from fundraising. Because our revenue has been cut in half, and it is likely to take months, if not years, to return to our prior levels of activity, it was determined that personnel expenses needed to be reduced by at least one-third to remain solvent through the end of next year.
While we are bracing for the worst, our goal is to do this without layoffs, so on May 1 management reduced its base pay by 20% indefinitely, and this will be extended to the entire staff effective July 1. We are also beginning the sequencing of placing eight staff roles in furlough on a rolling basis beginning June 15, with some furloughs expected to last as long as 25 weeks.
Every staff member gives so much to the organization and represents US Squash so well. To a person, each are valued for all they do for the community. This will be a difficult time, however we are confident these are the appropriate and necessary steps to take at this time, and are hopeful that we will be able to restore people to their prior positions as programs and activity resumes.
The novel coronavirus is leaving nothing and no one unscathed or unaffected, US Squash included.
How can you help? If you are at all in a position to do so, please sign up for a 3 or 5 year US Squash membership, or make a donation to US Squash. US Squash is a 501c3 nonprofit and all contributions are fully tax deductible.
As a reminder, US Squash will host a virtual town hall meeting on Thursday, June 4 at 5:00pm ET, followed by a virtual version of the US Squash Annual Meeting of the Members on Thursday, June 18 at 5:00pm ET. I encourage all members who are able to join us.
Kevin D. Klipstein
President & CEO, US Squash