Last fall, the charitable nonprofit Under One Roof announced that it would be closing its Castro storefront this year and turn instead toward special fundraising projects while continuing to reach out to major donors. Board members even held a community meeting last fall to talk about the plan, called Greater Depths. It sounded like a good idea, based on the fact that the store, which benefits numerous HIV/AIDS organizations, had seen a sharp decline in revenue, and, as a result, the AIDS groups had seen diminished beneficiary checks. It's long been known that Under One Roof had an expensive lease agreement, and sales weren't enough to cover its operating costs. When it moved to its current Castro Street location in 2008, the annual rent ballooned from $85,000 to $200,000. Even with a former board member helping to pay the rent, the store became a money pit.
So we were surprised to receive a recent email stating that Under One Roof will open a new store in April. Not in the Castro, however, but in the Crocker Galleria in the city's Financial district. According to the letter, signed by board Chair Tony Hart, management at the Galleria is "offering us a beautiful space on the first floor of the mall at a fraction of what we were paying in the Castro." Well, we certainly hope so; Under One Roof's board had not done its financial due diligence on the Castro space that it just vacated.
There are questions for which we'd like answers on behalf of the community and beneficiaries, such as: When did Under One Roof's board enter into the Crocker Galleria lease agreement and why didn't it inform the community prior to signing a lease? Why did Hart tell people last fall that Under One Roof was ending its retail space and focusing on special events, only to turn around and get another retail space? And, what are the projected payouts to the various AIDS organizations? We know from our past reporting that checks from Under One Roof have been smaller and have been distributed less frequently in recent years; how will it address these issues? What are the projections for shoppers at the Crocker Galleria? Has anyone on the board done a cost-benefit analysis for the new location?
Unfortunately, Under One Roof's designated spokeswoman, Jennifer Kutz, has declined to speak with us. That's too bad, because we're certain that people living with HIV/AIDS and the organizations that have benefitted from Under One Roof over the years would like some answers. At the very least, this new plan should have been vetted with community members like the agency's plan to close the Castro store was. Under One Roof's Greater Depths plan, which was the focus of last fall's meeting, didn't mention anything about a new permanent storefront, yet Hart's January letter refers to the new space as the first step in this plan.
There is a stunning lack of transparency among Under One Roof's board. And it brings to mind the problem nonprofits face when they are no longer effective or needed. For many years, some AIDS organizations have talked about "the day we'll no longer be needed." But we doubt that all the AIDS groups would shutter if a cure for the disease is ever found. Some will likely pursue new directions, which may be okay, but will require community buy-in and support. One only has to look at the scope of the San Francisco AIDS Foundation's plan for a gay and bi men's health and wellness center in the Castro to see what the future could have in store – and the millions of dollars needed from the community.
Today, the bulk of HIV/AIDS nonprofits continue to struggle financially, and they may face even bigger hurdles if the federal government is forced to make drastic budget cuts under the sequester, which kicks in March 1 unless some last-minute deal is brokered. Under One Roof is essentially taking money that would be going to those groups and using it for overhead costs to operate a storefront that few in the community were aware of, or, we suspect, may want.