World National
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Gay nonprofits tighten belts for recession

By Ari Bendersky, Gay.com / PlanetOut.com Network

SUMMARY: While some say the economy is moving out of recession, GLBT nonprofit groups are still feeling the effects, but are moving in the direction of recovery.

While five months have past since the Sept. 11 attacks kicked an already faltering economy into a tailspin, GLBT nonprofit groups are still feeling the effects, but are moving in the direction of recovery.

The Gay and Lesbian Alliance Against Defamation (news - web sites) (GLAAD) recently announced a reorganization and program shift that will focus on educating regional media outlets around the country through the use of strategically placed volunteers. To launch this effort, GLAAD will close offices in Atlanta, Kansas City, Mo., and Washington. However, no staff members will be laid off, according to Glennda Testone, GLAAD's regional media director.

Testone explained that the employees in those three cities -- one each in Atlanta and Kansas City; the D.C. staff member already works out of New York -- were given the option of moving to GLAAD's "media hubs" in Los Angeles or New York, but declined for personal reasons. She said GLAAD has put together severance packages for both employees since they won't be moving with the organization.

In addition to filling these two recently vacated positions, GLAAD will add two more positions to oversee focused local activity and have volunteers in key cities reporting back to the main office.

GLAAD was able to reorganize because the group foresaw the impending recession. GLAAD, as well as the Human Rights Campaign (HRC), started to take measures before Sept. 11.

"The general economy began to be a challenge about a year ago, so we've been more conservative in our budget process," said Elizabeth Birch, HRC's executive director. "We're growing, but more conservatively. We're going to keep doing everything we're doing."

GLAAD's Executive Director Joan M. Garry echoes Birch's message and said that during this downturn, it's imperative for gay groups to stay in strong contact with their members and to keep talking about the work they're doing.

"After Sept. 11, we actively reminded (our members) about the connection they've had with this organization over the long haul," Garry said. "It's important to have strong national organizations. It's important to our movement."

Recovery is the goal for some

On the flipside, not all groups were able to prepare for the recession and subsequent World Trade Center attacks. Some are still recovering.

Lambda Legal Defense and Education Fund, a national group working toward securing civil rights for gays and lesbians, felt a crunch in its development budget to the tune of nearly $500,000. Lambda's offices are mere blocks from ground zero and were closed for two weeks following the attacks; mail service was shut down for nearly a month. The combination of lost funds and lost time has set Lambda back, but Kevin Cathcart, the group's executive director, is optimistic that 2002 will still be a good year.

"We've postponed growth that otherwise would've happened by now and delayed a variety of new positions," Cathcart said. "I'm hopeful that we'll be able to fold much of that expansion back in." Cathcart admits there's a large demand for his group's work and that growth is still in their forecast. In fact, Lambda is slated to open a regional office in Dallas this June.

Smaller, regional GLBT groups, however, haven't fared as well as the large, well-funded gay nonprofits. Take San Francisco-based Positive Resource Center, for example, a 15-year-old group that assists approximately 2,500 lower income people annually living with AIDS (news - web sites) and HIV (news - web sites). In December, PRC leaders announced they had to lay off five staffers after learning they'd lost a major government contract around the same time that private donations started drying up.

But, like many GLBT groups, PRC remains devoted to its mission and its clients.

"Since 1987, our clients have relied on us to assist them in getting their disability and health care benefits, and ultimately rejoin the workforce," Mark Murphy, president of PRC, said in a statement at the time. "We will not abandon our commitment to them. In fact, we're more determined than ever to continue to provide for the community."

The overall effects of Sept. 11 and the poor economy on GLBT groups won't likely be fully known until the end of the year, according to Nancy Cunningham, executive director of Funders for Lesbian and Gay Issues, which advocates for increased support of GLBT issues within organized philanthropy.

"One challenge for LGBT groups and our community is to create a stronger culture of philanthropy," Lambda's Cathcart said. "It's more important now. There's no reason why all of our organizations shouldn't be able to raise more money and grow. The community has to look to itself."