At the last USTA Texas Annual Meeting, Brian Vahaly, the First Vice President of USTA National, emphasized the need for greater transparency within the organization. He illustrated the point by sharing his own experiences when coming up through the player development program. His dissatisfaction with the organization was rooted in decisions that seemed to be dominated by backroom politics rather than merit. Greater transparency might have changed his perceptions.
Organizational transparency is crucial for non-profits like the USTA. It is necessary to foster trust that the decision-making process and outcomes align with the organization’s core mission. Trust is essential to maximize stakeholder engagement and participation. People with insight into what an organization does to achieve its stated goals are more likely to feel invested in its success. That can be reflected in increased volunteerism, program participation, and fundraising support.
The IRS regulations that govern 501(c)(3) organizations require a certain degree of financial transparency. Compliance is necessary to preserve the USTA’s tax-exempt status and demonstrate financial integrity and ethical conduct in its operations. It is also an effective mechanism to establish accountability as the organization allocates resources, determines budgets, and makes strategic plans. It is essential to ensure that the USTA programs and services align with its mission: To promote and develop the growth of tennis.
The USTA has a chance to reimagine its spending to drive better performance toward its goals. Vahaly outlined his vision for greater financial transparency within the USTA based on his experiences working in private equity. He outlined a framework for establishing accountability via a series of questions:
- How was money spent?
- Why was money spent that way?
- Is it working?
- What are you doing about it?
When I look at the Consolidated Financial Statements of the USTA, the top-level data on how much money was spent is clearly visible. That is required for IRS compliance. However, the remaining three questions are not addressed in any meaningful way in any other public-facing document. While the IRS doesn’t require that additional information, it is needed to drive the kind of transparency the organization needs.
Though it wasn’t a part of Vahaly’s talk, I contend that greater transparency would be highly beneficial at the USTA Sectional level, especially within the Community Tennis Associations (CTA’s) that are delegated responsibility for most of the grassroots programming. There is an opportunity to build higher levels of trust at every level of the organization.
Greater transparency within the USTA might have changed Vahaly’s experiences with the organization as he was coming up through the player development program. However, it’s crucial to recognize that increased transparency can also impact actual decisions. Given the historic lack of transparency, that is the truly scary part for the USTA.
Enhancing transparency, both financially and operationally, presents a significant opportunity for the USTA to build stronger trust and accountability across all levels of the organization. That, more than anything else, will ultimately drive greater success in promoting and developing the growth of tennis.
- Consolidated Financial Statements, United States Tennis Association and Affiliates, Years Ended 2022 and 2021.
