Between the negative publicity brought on by the Girl Scouts of America’s affiliation with Planned Parenthood and other liberal organizations, camp closures, council mergers, and dissention in the ranks, the iconic organization is now facing a loss of thousands of Scouts and a $347 million deficit.
The Associated Press (AP)is reporting on a variety of woes troubling the Girl Scouts from declining membership and revenues to serious rifts between the national leadership and grassroots members.
The problems start at the top, at the GSUSA headquarters in New York where several senior executives have quit or been fired since Anna Maria Chavez took over as CEO in 2011. Last week, roughly 325 employees were invited to take early retirement and more layoffs are expected in August to offset steep revenue losses.
The Girl Scouts attempts to update their image, which began in 2003, has also resulted in turmoil. In an effort to be more relevant, they have changed their handbooks and programs in ways that many see as too liberal.
“The Girl Scouts have filled their National Leadership Team and Board of Directors with unwavering ideologues whose careers, non-profit work and philanthropic choices reflect a hefty commitment to liberal causes – same-sex marriage, gay and lesbian rights, abortion rights, comprehensive sex education and ‘girl power’ feminism,” reports Mary Hasson for the Catholic News Agency.
“Their liberal ideology drives everything – from program materials to themes to partnerships – even their view of leadership.”
It has also driven quite a few members out the door. Since the Scouts’ re-imaging program began, membership has plunged from 2.8 million to 2.2 million.
Consequently, donations to the organization also plunged from $148 million in 2007 to $104 million in 2007.
But that’s not their biggest headache where revenues are concerned.
The organization is still reeling from a program implemented in 2006 by former CEO Kathy Cloninger to increase efficiency by realigning local councils which resulted in slashing the total number of clubs from 312 to 112. In the process, the organization lost many longtime employees and volunteers. They are also being sued by one but resulted in the departure of many longtime employees and volunteers.
Some councils, such as the Manitou Council based in Sheboygan, Wis., sued to block its merger in 2008 and won. The 7th U.S. Circuit of Appeals agreed that their council deserved the same protections as any other for-profit franchise operator.
The same merger program also affected the Scouts’ national pension plan because many employees were added to it as an inducement to retire early.
This brought on another lawsuit from Girl Scouts of Middle Tennessee who sued to get out of the plan, saying the organization added 1,850 employees to it who hadn’t contributed anything, thus burdening local councils with a liability they never agreed to assume.
As the AP reports, according to the suit, the pension plan had a surplus of more than $150 million in 2007. It now has a deficit of about $347 million.
Some councils, in an attempt to recoup their losses, responded by closing down camps, a move that caused yet another uproar in the ranks who say camping is integral to the scouting experience.
In spite of these serious problems, GSUSA CEO Chavez insists the organization is on the right path even though she acknowledged the mounting challenges.
“Change can be unsettling and it is not surprising that some would prefer for us to remain static,” she said. “But doing so would be a disservice to girls who need us now more than ever.”
Members disagree.
“I care so much about this organization, and that’s why I hate to see it pulled down,” said Suellen Nelles, CEO of a local council based in Fairbanks, Alaska. “We have leadership at the top who are toxic to this organization and need to go.”
Cheryl Brown, former CEO of a Girl Scout Council in Arkansas agrees. “In trying to be more relevant, they’ve gone too far the other way.”
In the meantime, GSUSA has launched a campaign to raise $1 billion by 2017 and is undertaking new initiatives to improve relations with local councils.
Thus far, their efforts have not paid off.
The AP reports that according to GSUSA Treasurer Joan Wagnon, revenue from membership dues was down 3.8 percent over the past year and nationwide cookie sales for 2012-13 were down about 4.5 percent.
The members themselves may be the only hope. Dozens of younger employees have joined a group called The Future is Ours and are hoping to steer the organization in a new direction.
Amanda Kremer from the Heart of Michigan Council, who serves as the group’s chair, posted a letter to Chavez online asking for dialogue about how to improve the situation.
“We want to make sure that we inherit a financially sound organization poised to last another 100 years,” the letter says. “We do not think things are headed in that direction currently.”
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