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Debt Collection for YMCA

The YMCA is one of the largest and oldest non-profits worldwide. They serve more than 60 million people in 120 countries and are essential pillars of the community in small towns and big cities. They provide vital services for underserved populations and all types of programs and facilities for the local community. For most, the local YMCA offers these facilities and programs for a fee, and unfortunately, these fees sometimes go unpaid. In these instances, YMCAs need help recovering the money they are owed so the organization can stay financially healthy. Here is how working with an experienced, ethical debt collector can help YMCAs accomplish this.

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Why YMCAs Need Debt Collection 

YMCAs have two general types of programs they provide. There are free programs that serve the members of the community who are in need. These include family services, education outreach, child welfare, and foster care programs. Keeping track of who owes what and when payments are due can be cumbersome, especially if the YMCA center does not have a robust accounting system. Delay in payments can affect the cash flow of the YMCA center, making it difficult to manage operating expenses.

These services that local YMCAs play a massive role in the community and do so much for people in need. The challenge for YMCAs in offering these types of programs is that they cost a good deal of money and do not make any money for the organization.

This means that YMCAs must offer other ways to support these vital community-building programs. One of the ways they do this is by offering paid facility use and programming for the segments of the community who want to partake. This includes things like providing fitness facility use, dormitories, facility rental, and recreational and social programs such as Summer Camps. In many cases, members take advantage f these offerings based on just a deposit or with a monthly fee. When the balance of these payment plans goes unpaid, it can hurt the Y’s bottom line.

How a Debt Collection Agency Benefits YMCAs

Debt collection can be a touchy subject, especially for a non-profit organization that does so much good in its community, like the YMCA. However, it is a necessary process because if the Y provides too many services without the cash flow to back them up, they could fail and ultimately be of no use to the community at all. This is especially true for an organization providing many free programs for those in need. They cannot afford to carry people who can afford to pay but choose not to.

Turning outstanding accounts receivable that are 60 or 90 days past due to a debt collection company makes sense for YMCAs. These agencies have the professionals and the skill set to recover more money faster than the non-profits would ever be able to on their own. These debt collection professionals also know how to do it in an amicable and ethical way that will not violate local, state, or federal laws or cause undue stress on the member.

Conclusion

When done the right way, YMCAs using an experienced, ethical debt collection agency can be a win for all parties involved. The members can be treated with the respect and dignity they deserve and the YMCAs will not only receive the money they are owed so that they can continue offering all the essential community programs and services but also not alienate their members. This will allow the YMCA to function appropriately, stay financially healthy, and continue to meet the needs of their local community as the organization has been doing for more than 175 years.

Filed Under: Debt Recovery

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