Nine months ago, our editorial outlined the severe problems at Academy of Friends, the San Francisco nonprofit that raises money for Bay Area HIV/AIDS organizations primarily through its Oscar gala. Last year, AOF was unable to make the full payments it had pledged to its beneficiaries, instead dolling out small amounts to the 11 agencies that had been selected. Those 2010 beneficiaries were invited back to this year's event, and all but one apparently accepted.
Last month AOF held its 2011 Oscar gala and now, more than two weeks after the event, AOF board members claim to have no idea of how much money was raised and would not answer questions on when payments – now almost a year overdue – would be made to the organizations. It is inconceivable that 18 days after an organization's crucial annual major fundraiser, it still has no idea of how much money was raised. Are the checks and credit card receipts sitting in a box somewhere? We doubt it. More likely is that AOF board members know exactly how much money was raised and they're trying to come up with a payment plan because they didn't raise enough – again – to cover the previous year's obligations. (At least we hope that's the case.) But why not just come out and say that? The secrecy and unwillingness to answer questions except via e-mail are stalling tactics that serve no one – except AOF board members.
That's not right. And we're tired of the same excuse – the economy – coming from nonprofit leaders who are supposed to be pillars of the community and should set an example for charitable giving. Yes, the economy was in a tailspin two years ago, and the Bay Area felt the effects like everywhere else in the country. Well-run nonprofits, however, like any for-profit company, should be able to weather these economic downturns through strategic planning and financial management. Board officials presumably are provided with regular updates on the budget and should be able to see how much cash is coming in, how much is going out, and how much is on hand. Yet in our community, we have several organizations whose board members were apparently asleep at the wheel and now they find themselves having to furlough staff (SF Pride), failing to make good on financial obligations (SF Pride and AOF), or facing potential closure (Lyon-Martin Health Services), and they all put most of the blame on the economy. Amazingly, community members fall for it and many do not seem concerned that once well-respected agencies are now teetering on the brink of collapse.
We say: enough is enough.
AOF should replace its board of directors – former Executive Director Mike Horak left in a hurry last year for the comforts of Napa Valley – and cancel plans for its 2012 Oscar gala until it has paid the 2010 beneficiaries in full. AOF should continue the several smaller fundraisers it hosts throughout the year and use the money raised to make payments. It should also seek additional funding from its corporate sponsors. We are not sure how much sponsors know of AOF's financial situation, but they should be informed if they have not been already.
AOF should also stop saying it's raising money for HIV/AIDS organizations because clearly the charities aren't receiving the payments. The lack of funds, of course, directly affects people living with HIV/AIDS – the very ones who should be helped because of AOF's fundraising. They're the ones who are really being hurt by AOF's fiscal shenanigans. If benefitting organizations aren't receiving the money, then they can't afford to hire that extra staff person or increase hours of service to PWAs.
Executives at those agencies that are 2010 beneficiaries should demand that AOF make the payments and, if not complete, devise a plan and stick to it. Right now, nonprofit leaders are largely keeping quiet, and that does nothing but play into AOF's mismanagement and complacency. If you were expecting $10,000 and got a check for $1,400, wouldn't you be upset or, at the very least, demand a payment plan to receive the rest of your money? Of course you would. These executives probably don't want to rock the boat, lest their agencies not be invited to future events. But the question is: if you're invited back and still don't see any money, what's the point of participating?
In the end, it's about accountability and transparency. Both are sorely missing from AOF's board as well as the leaders of benefitting agencies. AOF won't make good on its 2010 commitment if people don't speak up. Clearly, AOF's board did not heed our recommendations of nine months ago, so community members must demand that prompt payments be made to these AIDS service organizations.