The other 25 percent will be paid (if things keep going the way they have been. Touch wood) by December of this year.
When Leo and I took over the Association last year (he is president, I am director), we found a mega debt that apparently went back as far as 30 years (the creditors changed, but the debt, not so much) that was accompanied by some bad habits, like always paying the rent late, updating accounting every 3 months or so, spending more than was coming in, etc. Considering that the Association takes in about 80,000 euros per year, a hole of 40,000 was pretty daunting. After we had about 3 heart attacks each, we decided to take action. We needed to be absolutely drastic in order to stay alive. Here is what we did.
First step: TAKE RESPONSIBILITY. We committed ourselves to doing what was possible not only to save the Association but to give it a future. Well, not really, we just went into panic mode and put out fires with our legal friend, Federica, for the first three months. Then we asked our friend, Davide, to help with the accounting. From there we could finally concentrate on filling up classes and planning fundraisers with our colleague, Denise. Here's what else we did to save money and boost revenue. We plan on being completely debt free by the end of the year and as of yesterday it actually looks more possible than ever, thanks to a lot of team work and honesty.
1. Started treating the business accounts like a personal bank account. Started tracking EVERY penny that came in and went out.
2. Changed phone plan, down-graded ADSL, got a company cell phone for cell calls (which cost a lot from a land line). Saved over 100 euros per month.
3. Stopped updating website (600 euros per year) and started a blog (free)
4. Made the director (me) a volunteer (300/month)
5. Asked Davide to do the day to day accounting and make payment plans (Key decision).
6. Went to all creditors, asked forgiveness and made payment plans, stuck to them.
7. Gave our teachers a raise (best decision we made. Good teachers are like good hairdressers. They have a following). Made sure all teachers are paid the same (we only want the best, btw, so this is not a problem)
8. Bought office supplies on-line.
9. Stopped paying for expensive dinners for VIPs, having coffees out
10. Asked illycaffè to donate a coffee maker, they did. Now we have VIPs for coffee.
11. Changed our payment terms for classes (pay before, not after)
12. Asked big companies for help (some did!)
13. Held fund-raisers (Thanksgiving, 4th of July)
14. Received a grant from US Gov for materials, opened a children's library which revitalized our image.
15. Asked US Gov to donate our magazine subscriptions (500 euros/year)
16. Created a team of volunteers: Accounting, Legal, Fundraising, Graphics and marketing, Library, Public School Liasion, Programs and Events, IT. (savings LOTS).
17. Created a positive, family-oriented, volunteer-friendly community
18. Teachers donated teaching hours (no one forced them. It was voluntary and says something about the awesome atmosphere I work in).
19. Found an accountant who would provide tax help for free (Hopefully we will be able to pay him one day) saving us 2000 euros/year
20. Split the cleaning lady bill with our sub-renters.
21. Paid serious attention to energy consumption.
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