Butterfly Garden Early Learning Center is a nationally accredited learning center in McKees Rocks, Pennsylvania, primarily serving children 6 weeks old through pre-kindergarten.
McKees Rocks is one of the most challenged communities in Allegheny County: per-capita income is $28,000 per year, slightly more than half of the Pennsylvania average; the average home value is about one-third of the Pennsylvania average; and the school district is among the poorest performing in the State, as ranked by the Pittsburgh Business Times in 2009.
In this environment, Butterfly Garden prides itself on providing quality care to each child enrolled in one of its programs. Primarily publicly funded, the program relies heavily on revenues generated by state support to poor families. However, these payments, along with other revenue sources, were not sufficient to cover program costs nor provide fiscal solvency. It was these circumstances that led to Butterfly Garden’s collaboration with PSVP.
Project #1: The answer lies in the numbers
Instrumental to achievement of these goals was the consulting work led by partners Tom Canfield and Dana Schultz, even more so than the $15,000 PSVP award. Tom spearheaded the effort to reorganize the center’s accounting system.
The nature of Pennsylvania’s child support payments is that they are age-dependent. Infants are eligible for the highest payments and preschoolers for significantly less. To add to the complexity of the revenue equation, state regulations mandate that only a certain number of children can be in a room staffed by two qualified adults – eight infants, 12 toddlers, or 20 preschoolers. Tom synthesized this data and created new profit and loss (P&L) reports that organized revenues and expenses by room. This provided insightful data regarding the revenues and costs associated with each child and with each room.
The P&Ls indicated that Butterfly Garden could increase revenues significantly by increasing the number of preschoolers relative to the number of infants. In addition, the financial analysis also suggested that the center could raise its prices to a more marketable rate, given that the center was at capacity and had a sizable waiting list. Butterfly Garden implemented these suggestions, thereby increasing revenues to a more sustainable level.
Project #2: Updating the image on several fronts
Butterfly Garden also used PSVP funds to update its image in several ways: improving signage around the facility; producing new, professional looking promotional fliers; and replacing worn carpets and furniture. PSVP partner Anthony Closkey with Big Big Design, redesigned the organization’s website.
A “continuum of improvement”
Angie Marshall, the Director, is very grateful for PSVP’s involvement with the organization and the funds and expertise that PSVP provided. She sees a “continuum of
improvement” taking place at Butterfly Garden. All of the target areas for which help was initially sought are improving. Angie says that PSVP’s assistance helped her to explore issues that she always knew were problematic but never had the time or resources to address.
Now, with the tools provided by PSVP, Angie has a better handle on what her organization can do to thrive, expand, and get closer to financial sustainability.
One of the most helpful aspects of PSVP’s involvement was the fresh perspective that the partners brought to Butterfly Garden’s aspirations. Working with an investee in this way is also very satisfying for the partners who donate their time. Take it from Dana Schultz who says, “I got satisfaction out of trying to help, especially since the people at Butterfly Gardens were so overworked and just didn’t have time to address these issues.”
Download “Butterfly Garden: A PSVP Story of Perspective” (PDF)