Q&A: Mike Lubbe, president and CEO of YMCA of Southern Nevada

By Richard N. Velotta

Friday, June 25, 2010 | 3 a.m.

One of the cold realities of the Great Recession is that people have cut some of their philanthropic giving.

But one of Southern Nevada’s longest-standing nonprofit organizations had a record-setting fund-raising year in 2009, thanks to work by the 30-member volunteer board of the YMCA of Southern Nevada, which works closely with its president and CEO, Mike Lubbe.

Lubbe is in his 12th year as CEO and has nearly 25 years of YMCA leadership experience. The local organization, which has served Las Vegas since 1944, provided nearly 8,000 people with direct financial assistance totaling $700,000 last year. The organization says it won’t turn anybody away because of an inability to pay and last year it provided more than 3,000 free six-month memberships to people who were unemployed and their families.

Lubbe talked with In Business Las Vegas about the Y’s successes and challenges, and why today’s organization “is not your grandfather’s YMCA:”

IBLV: Most people have heard of the YMCA or have a general idea of what it is. Give us an overview of what the organization offers and who it serves.

Lubbe: Our primary focus is serving the family. We will have programs for infants all the way up through senior citizens. As you mentioned, a lot of folks have a perception of the Y, the “gym and swim” kind of thing. We have fitness and wellness activities like you’d see in local clubs. We have youth sports activities, summer camps, after-school activities from the little ones all the way up to the seniors. We’re looking at the entire family and we let the family define itself. It could be a single-parent mom, or a grandma and grandpa. We serve the entire gamut.

How many people do you serve in Southern Nevada and what kinds of programs do you offer?

We have about 5,000 people who have memberships at the Y at any given time. One of the misconceptions is that you have to be a member to participate in activities, which is not the case. They can purchase one of the services, a summer camp, a swim lesson, put their child in karate, an exercise program. They’re not required to be a member. But a membership really has value to those folks who want to come in and do things together in the facility, maybe not a structured activity but they want to come in and use the outdoor pool. Maybe mom or dad want to use the exercise equipment while son or daughter is in a class — a basketball class or a karate class or that kind of thing. We try to give families the option of doing things together or they can do things independently of one another at the same time.

Are there any multigenerational activities so that everybody can participate at the same time?

We take some opportunities during our summer camp or during the after-school program where we’ll have some of the parents come in and speak with the kids about their vocation, what they do for work. It’s an opportunity for youngsters to learn about jobs. A lot of times volunteers like to come in and read to the kids and give them the opportunity to interact in that way. Then, there are informal multigenerational things all the time. There are seniors here who like to interact with kids. There’s a wide range of folks here all the time doing things together.

How are Southern Nevada’s YMCA programs different from the ones many people may be familiar with in the East Coast and the Midwest?

Each Y is chartered to serve their local community so your local needs come first. There are some things that are pretty standard. A lot of people come from the East Coast or California that had experience with swim lessons or summer camps. Maybe some of them learned basketball. One of the universal things that I’ve seen at the three or four Y’s I’ve been at in different parts of the country is the lunchtime basketball. At whatever Y you go, that’s prevalent. Then, there are some unique things at the different YMCAs. One of the unique things we had here was when the economy started to go south earlier this year, we did our program for folks who were unemployed. Of course, Nevada was hit harder than most communities, so it was our response to a local need.

What’s your annual operating budget?

We have three facilities here and our operating budget is between $5.4 million and $6 million. We are somewhat of a seasonal organization. In the summer months, we have summer camps, outdoor pools and with kids being out of school, parents look for opportunities for them with summer memberships. We really seem to swell up in our participation levels. Our revenue is made up of three sources: program fees, those folks who just want to purchase a class or activity; membership dues, people who want to have the facility membership; and contributed income – our fundraising. Our revenue is pretty evenly split up.

You recently reduced rates by 15 percent. How has that affected operations?

We had a pricing strategy like a lot of organizations in which every year we’d raise our membership and program fees for inflation. We found that by doing that at 3 percent to 5 percent every year, after 10 or 15 years your prices start to become unaffordable for the community. We did some customer research among our existing customers and people who wanted to participate at the Y but didn’t. What we found was that our rates were a little too high. That’s what the consumers were telling us. So we tested three different price points and determined that we needed to lower our rates about 16 percent to stay affordable within the community. We can’t reach our mission of helping build strong families if it’s not affordable.

What’s the biggest issue or concern facing the YMCA in Southern Nevada?

I’d probably start with the economy, more specifically unemployment. It’s hard for folks to think about activities for their child and themselves when they’re struggling with the fact that they don’t have a job or maybe their pay was reduced or one of the two is out of work. That’s probably our biggest challenge now, and trying to grow despite those challenges. We’ve re-engineered our entire business plan and now we’re looking strategically at how we get back into the mode of growth.

How has the poor economy affected operations?

We did what a lot of businesses and other organizations did. When the economy started to change, we had to do some cost-cutting. We had to look at our operations and not only adjust pricing, but how we operated. So we looked at our operating hours, our labor, our costs, our supplies, how we were delivering some of our programs, and changed that around a bit at the same time that we lowered our rates. What we’re finding now is that our 2010 first quarter started a lot stronger than where we were at the start of 2009. We’re in pretty good shape.

So has the additional volume generated due to the lower rates made up for the reduced revenue from each individual coming through the door?

Yes, that’s true. Also, our retention has improved. So we don’t have as many people leaving. We’re retaining them because it’s a little more affordable. We are governed by a 30-member board of volunteers and those folks take on the primary responsibility for fundraising. The reason they fundraise is to keep the fees affordable for the lion’s share of the community and so those who can’t afford it can get direct assistance. That’s our business model. Charge very affordable, fair fees and those facing challenges and can’t afford it can apply and get assistance and their membership dues are paid for that program, which we call the “Strong Kids Program.” It’s for families that have financial needs.

With the public having less disposable income, are you seeing fewer people because they can’t afford it or more people because it’s a less-expensive alternative to other activities?

We’re actually seeing both. We’re seeing those folks that have been really challenged by the economy. Those who have been the most challenged are those who lost their jobs. If mom or dad lost a job, the biggest impact we’re finding is in our child care type of programs. In prior years, they may have needed a summer camp or after-school program or a program for when their kids are on a track break. Now, they don’t need that because mom or dad is at home. On the flip side, what you mentioned earlier, we also have people who say, “Hey, the Y is a very affordable option for family recreation. I can afford to go there for a lot less than some of the other attractions that I would spend money on.” And, the more you use it, the better the value is. It’s a good low-cost alternative and it’s safe. That’s what a lot of families are looking for.

One of your slogans is “At the YMCA, no one is turned away because of an inability to pay.” Have you always been able to make good on that? How do you decide who receives financial assistance?

First, we do it on an individual, case-by-case basis. We have our own sliding scale that determines the level of income that the family has vs. what type of assistance we can provide them. On top of that, we look at any special circumstances that the family might have, such as unemployment or a medical condition that is causing a lot of medical bills, a recent divorce or any family situation that comes to bear. Generally speaking, we like to make sure the family contributes something. We’ve found over the course of time that those that invest something into their family recreational membership or their child’s camp are much more appreciative and tend to participate more. We don’t want them to sign up, register and never come. That’s one of the reasons we want them to make some kind of a commitment, even if it’s just a dollar.

Who makes the decisions on that?

We have a couple of folks at each of our three branches that are trained in that methodology of one-on-one interviews with the families. We call it “listen first,” in which we allow the family to let us know what their situation is and what their particular needs are and why they’re coming to the Y. It’s different from school or work — nobody has to come here. These are all people who are coming here because they like the place and want to enroll in some activities.

What are some of the things you have going on during the summer months?

A lot of parents, when summer comes, think about, “Gosh, I’ve had my son or daughter in school all year long … now I need somewhere for them to go during the summer months.” So summer camp is extremely popular. People need safe care, wellness and active things for the kids to do. They don’t want their kids sitting around in a classroom. All of our outdoor aquatic centers opened during the Memorial Day weekend and will be open throughout the course of the summer. There are pool passes and summer memberships available so folks can take part in pool activities. Also, for regular recreation, when the weather becomes unseasonably warm and you really can’t do your bike ride outside or your walking or your jogging, all the things you like to do, you can come indoors and do them at one of the local Y locations in an air-conditioned, comfortable environment. We do have a special membership package for those individuals that allows them to have a short-term membership, even if they’re not interested in the Y for the balance of the year — they can at least come in and take advantage of those activities throughout the course of the summer.

When you talk about summer camps, some may envision this as a place where you go, but this actually occurs right here.

We actually have camps at each one of the three Ys. The kids can be dropped off as early as 7 in the morning and picked up as late as 6 p.m. A lot of times a work schedule fluctuates so you need some flexibility. There are different themes each week and there are probably eight or 10 different camps that parents and children can select from. Those will rotate throughout the course of the summer, so if you do have a couple of children who will be there all summer, they’re not going to be doing the same thing every day for 10 or 11 weeks. They have some variety. They can come for just one week or they can come for the entire summer.

What are some of the things they do?

We have group activities. They’re in age-appropriate groups, so they’ll be in with kids that are the same age. They’ll be assigned a camp counselor, usually a college or high school student or young adult in the education field. They will swim. That’s usually a part of the day. They have group activities that they do, such as arts and crafts. They’ll have an active component so they’ll be playing basketball, volleyball, racquetball, walking, hiking or jogging. We usually like to get the kids out in the morning before it gets too hot so that they can do things outdoors on the playground. They’ll have a lunch break and some quiet times through the course of the day. They’ll also have some self-directed activities, a little bit of free time. And then, there are special activities. They go on a couple of field trips to some of the local attractions and they do some rock climbing right here at the Y. So there are some neat things that they’re able to do.

How much does it cost?

It starts at $100 per week and maybe up to $150 a week, depending on if they go to a specialty camp that includes archery or bowling or something like that. And again, if there are families out there that would love to participate that don’t have the necessary resources, there is financial assistance that is available.

The YMCA is a nonprofit organization. How does that status affect operations?

It starts with the board of directors. Our board is all volunteers. There are no proceeds coming to the organization that go to owners or the board. The members of the Y, in essence, are actually the owners. But you do have to operate a lot like a business. You have to be very aggressive in the marketing and public relations of your product and services. You have to watch payroll and other expenses and operate very frugally. You have to be nimble in terms of reacting to the economy. A lot of times, the board is like a free consulting arm made up of accountants, bankers, attorneys and folks in insurance and the media. So they help us operate like a business, yet still using the compass of human services to the customers, which is where the mission comes in.

What are the organization’s major fundraising events?

We have a couple of events we do. We do a dinner-auction every year. It’s not a black-tie event, but more of a casual style and we do it every spring. Like many nonprofit groups, we do a golf tournament. But the majority of the money we raise is through direct asks and direct solicitations from board members to other friends, business associates and colleagues, maybe foundations and grants. That’s where the majority of the money comes from. The special events are about trying to raise money and have fun at the same time.

How does the business community support the organization’s fundraising efforts?

Most of the money we get comes from private individuals and companies. We do get a small amount of government funding and some small grants, but most of it comes from local individuals and local businesses. The banking, insurance, hotel and gaming industries are very generous to the Y.

What’s the organization’s 2010 fundraising goal and where do things stand?

Our sustaining campaign is called our Strong Kids Campaign. We have a goal of raising $615,000 just in that direct solicitation effort. We kicked it off in February and we’re well ahead of last year’s pace. In mid-June, we were at about 80 percent of the total goal and we actually had record fundraising numbers in 2009.

In this economy, how did you do that?

The thing is that, one, we have a great brand. The YMCA is nationally known and very recognizable. Two, we have a really good board and that’s where all the fundraising work is done. And three, we dedicated an appropriate amount of staff time in terms of allocated full-time efforts with the director of development. So those three things — the brand, the board and the on-staff development director — have gotten those results. People are reading every day about the economy and how needy families are and about people being laid off, so they’re well sensitized about the need to give.

What do you view as your competition? Private health clubs? Municipal recreation centers? Other forms of entertainment?

I would answer that two ways. On one hand, everybody who deals with kids and families is a competitor; in other ways, there really is no competitor. The reason I say that is our main emphasis is serving kids and families and serving the entire family. Rarely are there any groups that have that same intent. They may serve certain segments of that population, but no one really serves that entire population the way the Y does.

When you walk into a YMCA, it looks a lot like a health club. How do the private health clubs view the YMCA?

Obviously, you’d have to ask the clubs for a more accurate assessment. But my hunch is that YMCAs and health clubs co-exist in a community because there are distinct groups that really prefer a health-club environment and may be more convenient. A club may have more equipment and be open longer hours and there may be a segment of the population that doesn’t really want to be around kids or seniors. They can get into an environment where you can get a good workout in a really convenient, quick and efficient manner and that family atmosphere is not critical. So there’s a good marriage between the groups presently.

The YMCA of Southern Nevada owns the Bill & Lillie Heinrich YMCA (at Meadows Lane and Valley View Boulevard), but the City of Las Vegas owns the Durango Hills and Centennial Hills Community Centers, which the Y operates. How did that evolve?

Years ago, through City Councilman Larry Brown and his colleagues, along with Virginia Valentine at the city of Las Vegas, we were looking at ways to continue to provide family recreational activities, but also save money. One of the things they did was build some recreation centers and ask the local nonprofit community if they may have some interest in operating them, and the marriage would be that they could build a building through their resources, which would not require the Y or the Boys and Girls Club to raise all those capital dollars through private donations. But on the flip side, the city would not have the costs associated with operating and the administrative headaches related to operating all the programs and services. That’s how it all evolved and it started with the Durango Y back in 2000 and the Centennial Hills Y just a couple of years ago.

What happens to the revenue generated by programs in those buildings?

In our partnership agreement with the city, they own the building and maintain the capital costs related to the systems. They also assist in the operations by covering the costs of utilities. The YMCA manages and operates the facilities, taking all the revenues and related expenses. Like most start-up businesses, in the first several years, you lose money on them. At a certain point, you get to where you can break even. None of the city centers or the Heinrich Center make money. Their goal is to break even. In some cases, it’s the economy and other variables. In many cases, you actually lose money and that’s where the fundraising comes in.

Most of your facilities are in the northwest part of the city. Are there plans for expansion?

Our overall goal is to expand into underserved parts of the valley and we really have a couple of growth strategies. Obviously, we’d like to continue to work with the municipalities and the partnerships, whether that’s with Las Vegas, North Las Vegas, Henderson or even Clark County. Second, we’d like to have more of our own facilities and operations. We do own some property in Clark County that we’ve done market research on that indicates it would be a suitable site to expand into another facility. There also are smaller business models, smaller neighborhood associations that we are taking a look at to expand our brand.

Do you have a timetable on that?

I think that’s going to be based on the economy and how quickly the valley responds. Independent of the public-private partnerships, the biggest impediment to growth is the ability to raise capital dollars. Our volunteer board has a good feel for that. They know the methodology. They’ll say, “Hey, we’re confident now with the strength of the economy that we could go out and raise money for our next building.” So no definite timeline just yet.

What’s the YMCA’s role in fighting childhood obesity?

We’ve all heard (First Lady) Michelle Obama speak about children’s activities and how important they are in preventing childhood obesity. The YMCA has a similar initiative launched a few years back called “Activate America.” What it indicates is that kids are less active than they were in prior years. It’s the first time ever when children are expected to have a life expectancy less than their parents’. We all know what the problems are; the question is what is the solution? The Y is very well positioned to assist in that effort because we have strategically located facilities that have a great ability to get kids active, we have a staff well suited to conduct those activities and we have a lot of volunteers that enjoy working with kids and families. When we started our Activate America initiative, we wanted to make sure all the programs we have here have a component of exercise, fitness, wellness and nutrition. So if a child comes to us for summer camp, track break, after school and they are going to be here for an extended period of time — for camp, they’re here for eight to 10 hours a day — that they’re getting exercise and they’re learning about proper diet and nutrition. They’ve been exposed to different methods and, probably most importantly, that it’s fun. The old days of telling a kid to go do 25 pushups, sit-ups and jumping jacks are gone. It has to be group activities, individual activities, things that are fun, things they think they can do long-term. Back to our facilities and staffing: In many cases when kids go to places for summer camp, they’re in a portable classroom all day for eight hours and we wonder why they’re inactive. In the 110- and 120-degree heat, there’s probably not a lot that they can do outdoors. If we can get them here in our environment, they can rock climb. They can go swimming. They can play racquetball or basketball. They can walk or jog on the track. We have computers that they can be on — obviously to break up the day a little bit. So there’s a wide range of things they can do. It’s our role to make sure we are also building awareness and providing a safe alternative for parents because parents have to have somewhere to go with their children. We are talking about childhood obesity, but it’s really not that much different for adults. In many cases, they are as inactive as the children.

What are you most proud of in your 12 years at the helm of the YMCA of Southern Nevada?

I’m really proud of the fact that we have been able to expand and grow with the community and modernize the Heinrich facility and extend its life and the work that we’ve done with the city. I’m proud of being able to do a great job with recreation and meeting the mission of the Y in two new communities. My hope is that as the economy begins to rebound, we can take that even further and touch the lives of a lot more kids and families.