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Urgent: San Diego LGBT Center Faces Layoffs Amid $19M Donation Crisis

UPDATE: The San Diego LGBT Community Center is facing a crisis as it issues layoff notices to over 100 employees, despite receiving a staggering $19 million donation intended to support the local LGBTQ+ senior community. This shocking development has raised urgent questions about the management and allocation of funds from the generous gift made by Maurice Thimot and M. Rust Rawnsley, which was given in two installments: $10 million in 2020 and $8.9 million in 2022.

Just last month, the organization filed a WARN Act notice with state officials, alerting them to potential mass layoffs due to “precautionary measures” taken amidst concerns about federal grant withdrawals. However, federal funding only constitutes about one-third of the Center’s annual income of $15.5 million, raising eyebrows among volunteers and community members questioning the financial strategy.

Why This Matters: With the urgent threat of job losses looming, volunteers and clients are expressing deep concern over how the $19 million donation is being utilized. Elaine Lewis, former chair of the Center’s senior advisory committee, stated, “That $19 million could make a huge difference in the lives of LGBT seniors, but it’s being spent in drips and drabs.” Many believe that the Center has a unique opportunity to create lasting impact for the LGBTQ+ senior community, yet the current handling of funds suggests otherwise.

Officials from the Center have admitted that they have not developed any new capital projects using the major donation. They explained that restrictions on the funds limit their ability to create senior housing, although they are expanding other services to benefit the community. “While we deeply value that vision,” spokesperson Gus Hernandez said, “the restricted nature of the bequest means we cannot use these funds for capital construction related to a senior center.”

What’s Next: The Center is under increasing pressure to clarify its financial decisions and the future of the donation. CEO Cara Dessert recently stated, “As of today, there are no plans to lay off any staff members,” despite the WARN Act notice suggesting otherwise. Community members are demanding transparency regarding the donation and its intended use.

In an April newsletter, board co-chairs announced that $350,000 annually from the Thimot and Rawnsley Fund would be allocated to senior services, but some community members, including client Charles Kaminski, have voiced frustration over cutbacks in essential programs like the senior lunch initiative.

The Center, established in 1973, has historically provided critical services such as HIV prevention and mental health resources. However, the current turmoil raises significant concerns about its operational integrity and commitment to the LGBTQ+ community, particularly its senior members.

As the situation develops, community advocates are calling for a full disclosure of the donation’s governing rules and how best to utilize these funds for meaningful programs. “Let’s get that out of the way, so then we can start talking about how best to utilize $19 million for senior services,” Kaminski added.

The coming days will be crucial for the San Diego LGBT Community Center as it navigates this complex situation and attempts to reassure employees and the community of its commitment to serve those in need. The outcome of these developments will undoubtedly impact the future of LGBTQ+ services in San Diego.

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