This will be the least enjoyable Director’s Corner I’ve written since I joined PHC. As always, I want to thank all our supporters for making everything at PHC possible, but I also need to let you know about our current financial struggles.
Coming out of covid, PHC was financially comfortable. We had a balanced budget (or at least very close to balances), and we had enough financial reserves to cover over three years of operations.Unfortunately, the after-effects of covid have changed that. More people needed our help, which led us to add staff. We raised our starting salary by 25% to attract qualified staff. We needed more supplies, and inflation compounded the problem. In short, we are spending much more than we are bringing in.
Last year, we used $100,000 of our financial reserves, and we budgeted the same amount this year. If we continue at this rate, PHC will run out of funds in about two years. We own our building and land mortgage free, so we will have a few options at that point, including closing, merging with another organization, or mortgaging the property. Obviously, none of these options is desirable.
The Board of Directors and I are examining as many options as we can think of, both to increase our revenues and to cut our expenses. We know we have been entrusted with a wonderful resource for the community, and we are determined not to be responsible for it disappearing.
As we work through this challenge, we ask you to think creatively about how you can help PHC. Whether you pray for PHC, or can find new ways of letting others know about our work, or put us in touch with companies or foundations that would fund our needs, or help us find the supplies we need for our community, every little bit will help.
As I said at the start, everything that PHC does is made possible by our supporters. We’ve provided a place to belong to those who need it since Rose Tillemans founded PHC 39 years ago. While I am concerned about our finances, I know the value PHC holds for both our community and our supporters, and I am confident that together we will find a way of keeping PHC’s doors open. Thank-you for all you have done, and all you will do.