Levenfeld Pearlstein's Philip Ruben Leads 'Y's' Unprecedented Turnaround

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Jason Milch

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CHICAGO – Just three years ago, the North Suburban YMCA in Northbrook was near financial ruin. It had lost more than $1 million over an 18-month period, was running out of cash and had the prospect of having to shut its doors staring it in the face. Today though, it is back on solid financial footing after paying off the last of its long-term debt to mortgage holder Covenant Village and parent organization YMCA of the USA (Y USA) at the end of February. The North Suburban YMCA expects to be reinstated or recommended for re-instatement as a “Y in good standing” in April.

This unprecedented turnaround was accomplished under the leadership of Philip Ruben, a partner and member of the Executive Committee at Levenfeld Pearlstein LLC, who took over as the North Suburban YMCA’s Board Chairman and President in January 2005 and immediately spearheaded a dramatic turnaround. With the help of Covenant Village, Y USA and a revamped Board, the North Suburban YMCA undertook a fundraising effort, which raised more than $3.8 million in a two-year period. In February 2008, it paid off its mortgage and all of its outstanding obligations to Covenant Village and Y USA in the aggregate amount in excess of $2.2 million.

Mr. Ruben also was directly responsible for the hiring of Howard Schultz as Executive Director of the North Suburban YMCA. Mr. Schultz has added stability and energy to the staff and the Board, and he has also been instrumental in the Board’s fundraising efforts.

“I am tremendously proud of the extraordinary efforts that the members of the Board of Directors, the Community, Covenant Village, YMCA of the USA, and our entire organization have undertaken to successfully return North Suburban ‘Y’ to stability,” Mr. Ruben said. “While we realize that we still have a great deal of work to do in order to become the organization that we aspire to be, we also take great pride in the fact that no other ‘Y’ has ever successfully rebounded from the poor financial position that we were in. We hope that as we continue to take steps to ensure our long-term financial health, we will become a model for other distressed ‘Ys’ around the country to follow.”

Mr. Ruben continued: “One of my goals in taking the position was to make this organization a place that will be around for my grandchildren and their children. Northbrook and it’s neighboring communities deserve an organization like the ‘Y’, which provides scholarships in excess of $150,000 for camp and programs which help the needy, and which promote the ‘Y’ values of Strong Kids, Strong Families and Strong Communities.”

With the first stage of its turnaround completed, the North Suburban YMCA now plans to enter the second stage of the program, which will include a campaign to raise another $5 million in capital to refurbish and expand the facility, attract strategic partners, and ensure a financially healthy future. It also plans to raise an additional $2 million that will be earmarked as an endowment fund for ongoing building repairs, and to hold in reserve for future needs.

“Phil came into this challenging situation with a clear vision of where the board needed to go,” Mr. Schultz said. “His ability to make his vision a reality by reinvigorating our internal leadership and reaching out to the community was simply extraordinary. He has been the perfect person to lead us through this turnaround and we are fortunate to have him.”

Though Mr. Ruben’s term as Board president will end in April, he has agreed to remain with the organization as co-chair of the Capital Campaign that will be responsible for the second stage of fundraising.

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About Levenfeld Pearlstein, LLC: Founded in 1999, Levenfeld Pearlstein, LLC (www.lplegal.com) provides outstanding legal counsel and business advice to sophisticated clients in matters involving corporate and securities law, real estate, and litigation. With more than 75 attorneys and offices in Chicago and Northbrook, Ill., the firm possesses the resources and depth to manage the most complex matters, while ensuring that the needs of all clients are met in the most efficient and cost-effective manner possible.