Financial challenges can hit any business or organization, even those nonprofits working to provide education and support to others. However, just like any other business, decisions made years earlier in how to run an organization can end up coming back and really financially hurting the livelihood of a group.
This seems to be the case for Y-ME, which is a national breast cancer organization. The nonprofit's board of directors said earlier this week that a Chapter 7 bankruptcy has already been filed. The doors have also already been closed and the nonprofit's hotline number shut off. Volunteers with the group were reportedly given very little notice of the decision.
One woman, who is the founder of an annual race for the group and is a longtime volunteer, said the issue is poor decisions made roughly five or six years ago in terms of the organization's lease. This, combined with what she said was not the best management, led to the nonprofit being severely in debt.
In fact, according to Charity Navigator, Y-ME is roughly $1.6 million in debt.
Looking to the future, while it is surely sad news the nonprofit has had to shut its doors, it should be noted this is not the first nonprofit to file for bankruptcy protection, nor will it be the last.
However, while Y-ME chose a liquidation route, for those businesses and organizations in Florida who are struggling, keep in mind that there are other bankruptcy options often available that can reorganize debts in a way to keep the doors open.
Source: WBEZ, "Chicago's Y-ME moves forward with Chapter 7," July 16, 2012