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Is GLASS the first non-profit domino to fall?

by: KarenOcamb

Wed Feb 18, 2009 at 16:50:24 PM EST


(I want to welcome journalist Karen Ocamb, who just posted this exclusive on the Blend. She is the news editor for Frontiers In LA, a merger of Frontiers and IN Los Angeles magazines, and is an award-winning journalist with over 30 years of experience. More on Karen below the fold. Weigh in with plenty of comments; this topic is unfortunately something we're going to hear about more frequently as long-relied on resources find funding has dried up because of the Bush economy. - promoted by Pam Spaulding)

Wednesday night, eight days after its 25th anniversary, the board of directors of Gay and Lesbian  Adolescent Social Services (GLASS) voted 7-0 (with one abstention) to file for Chapter 7 bankruptcy this afternoon.  According to founder and executive director Terry DeCrescenzo, the staff is so "outraged" at the board's decision, they plan to ask a court to intervene and accept a reorganization plan instead.

"This is a world-class disaster," DeCrescenzo told me by phone, noting that GLASS just became the first licensed LGBT adoption agency in the country.  Their primary program is providing group homes for 40 LGBT 15-17 year olds, and transitional living for 25 teens between 17-19.  

KarenOcamb :: Is GLASS the first non-profit domino to fall?

"Where are those kids going to go? The county will tell you they'll place them somewhere.  But you tell me - who wants or who knows how to work with trans kids? My guess is that the kids will run away and we'll see them on the streets."

DeCrescenzo says she believes the board filed for Chapter 7 out of fear of their own personal liability because the agency was behind in paying Worker's Comp and with the IRS. But she says an LA County contract check was expected to cover the gap and she could work out a payment plan with the IRS.

Additionally, the reorganization plan would change the group home structure from a "family style" of six beds with two fulltime staff to 12-bed congregate living - hardly ideal but "better than going under."

DeCrescenzo started GLASS Feb. 8, 1984 after working with adolescents as a licensed clinical social worker and a juvenile trainer with the LA County Probation Department and seeing how "horrendously" LGBT kids were treated. Adolescent LGBT homeless runaways busted for minor offenses such as shoplifting or some charge associated with survival sex would be sent to the state's California Youth Authority because, DeCrescenzo says, local facilities refused to accept "overt homosexuals, fire-setters, or youth charged with or convicted of homicide."

"Someone had to do something so I did it," DeCrescenzo says.

A closeted gay man named Ed Boyle (now deceased) started two group homes in Los Angeles the early 80s - but it was harder for him since he lacked DeCrescenzo's professional credibility and there was an intense - though unwarranted - suspicion about him from both the gay and straight communities because of stereotypes of gay men as pedophiles. Without support, he went bankrupt.

DeCrescenzo says it took her a long time to train county departments that there was nothing wrong with leaving "an avowed homosexual alone with children. You leave adult heterosexual men alone with little girls. So why can't a gay man be left alone with little boys?" She found "fairness" under two directors of the LA County Department of Children and Family Services (DCFS) - one of whom had a transgender person as second in command - but otherwise she had to do "a lot of education."

The state, for instance, sent a social worker into a GLASS group home and challenged whether one young girl was really a lesbian because she had long hair.

In 1996, at a time when social workers, courts, lawyers and activists who deal with youth were trying to circumvent the state law prohibiting gay adoption, the state leveled unsubstantiated charges against GLASS staff and board members, precipitating a "crisis."

"It was a witch hunt. But what was amazing was the readiness of people to believe unsubstantiated charges about child sexual abuse - despite there being no victims and no perpetrators. I was later told by a well-placed informant in [Gov.] Pete Wilson's administration that the order came from high up to 'get GLASS.' My, how times have changed."

DeCrescenzo says that what lead to this current fiscal crisis was nine years of flat funding, increases in Worker's Comp, increases in liability, tremendous increases in health insurance and donor fatigue that made it hard to raise money.

Most of GLASS youth are "abused, abandoned and neglected" and referred through DCFS and the Probation Department. DeCrescenzo estimates that about 300 youth have used GLASS group homes or transitional living for youth who age out of the foster care system. The length of their stay varies from a few days to up to six years.  There is a 29 year old who works at GLASS now who started living in a GLASS group home at age 14.

Now DeCrescenzo fears what will happen to those kids. Despite their best intentions, most county facilities have no idea how to deal with LGBT youth "who've been knocked around a bit too much." For instance, she notes that many LGBT kids have "attachment disorders" and have great difficulty living in foster care.

"Sometimes they find it too intimate. Paradoxically, a loving family home stirs up all the old pain and they are reminded that their own families don't love them."

DeCrescenzo chokes up. "My heart is just broken for these kids."

In addition to the LGBT youth displaced by GLASS' Chapter 7 dissolution, about 150 staff will lose their jobs.



Karen Ocamb started her career at CBS News in New York where she clerked for Dan Rather and Bob Schieffer. She eventually became a producer, leaving CBS News after producing coverage of the 1984 Olympics for CBS affiliates.

Karen has produced, hosted and been a guest on many local public affairs shows and contributed to numerous media outlets, including the Los Angeles Times, The Huffington Post, TV Guide Online, The Advocate, The Bilerico Project, and OutQ News on Sirius/XM Satellite Radio. In 2004, Karen was named Woman of the Year by Christopher Street West, organizers of L.A.'s annual LGBT Pride event.

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This is very sad to hear
but I can think of at least one other reason they might be having difficulty. A few years back I tried to contact them several times to ask about donations, volunteering, fostering, whatever I could do. No one ever responded. Not to voice mails, not to e-mails. I finally gave up.

Cause any fool knows, a dog needs a home; a shelter from pigs on the wing

Thing is
with the worsening economy, the need for non-profit resources like this will be all the more necessary especially for LGBT youth.

Without these place, no ENDA, and the harassment they will face in other foster care and/or shelter facilities, we know what will happen to these kids. Our kids.


economy is not the issue
There is more than enough funding available for GLASS if you have a knowledgeable, skilled person asking for it.  Incompetence is the problem... just like NO ON 8.

[ Parent ]
Ok, I have seen what you have said
generally both here and in the comments of the poster on Joe.My.God. I am not in any position to make judgments on this.

I need specifics (what fundraisers were done, where did the money go, follow-up on the kids that were serviced, etc.).

 


[ Parent ]
get educated
you don't seem to understand what a professional, skilled grant writer does at a non-profit - especially a social services non-profit - it's not throwing fundraisers that are more about publicity than funds.  There is more govt and non-govt money available now for foster-care and transitional housing for general and special needs youth than ever in the history of this country - of course you have to respond to WELL publicized state and county budget cuts in a timely fashion using someone that knows what they're doing...

Non of which has anything to do with your list of specifics.


[ Parent ]
I currently
work at a non-profit and I have worked at another non-profit in the past, you dope. In fact, I am in the process of editing such a grant proposal, dumb ass.

And yes, non-profits do throw fundraisers

By the way, I have seen some of the specifics on another blog.

So...specifics, please. Knucklehead!


[ Parent ]
Look all
I am saying is that the charges you are making are serious, IMO. I would like to see more evidence behind your charges than your catty rhetoric.

[ Parent ]
Terrible news, but not a surprise.
I was at a huge GLASS fundraiser last year and it was made very clear at the time that this was inevitable without immediate intervention.  I guess all the LGBT celebs that were there that day weren't enough to raise the needed funds.  The GLASS people made it clear that in addition to their funding problems, their staff was also overwhelmed.  It's just awful that it's come to this.

Besides the economy, there are just so many worthy LGBT charities to support.  It's a mixed blessing that we have all the non-profit organizations we could ever want to take care of our entire community in LA at a time when nobody has any money to support them.

It's great to see Karen here, though.  She's the best.  I often wonder how she finds enough time in the day to cover everything and to do it as thoroughly as she does.


Thank you -
for your comments.

The ripple effects of this deep recession will hit all of us - and I'm afraid the toll it will take on our LGBT community will be one of the huge underreported stories of the decade.

Not just GLASS - and all the kids and staff without jobs - but think of the homelessness, suicide rate and domestic violence, and new SYD and HIV infections as people turn to alcohol and drugs (especially meth) and risky sexual behavior to numb the fear and psychic pain.

Plus - I fear that our individual institutions will go into crisis survival mode - instead of trying to figure out a way to collectively help each other.

We are part of this larger economic crisis and we need to speak up and be heard - through our elected officials and LGBT leaders.  


Not just the recession to blame...
Californians just spent $40 million to fight Prop. 8. They also devoted thousands of volunteers hours to the No on 8 campaign.

Most people like me have limited funds and time to give to charity and political campaigns. I donated thousands before the election and I'm tapped out for at least a year. I've had to cancel all of my my regular monthly donations.

This is the worst part of the Prop. 8 story and I'm surprised that journalists haven't reported on it. You need to tie these issues together.

And, these marriage equality battles are happening all over the country, draining resources and diverting charitable donations.

How much has been spent on the marriage equality issue nationwide? You need to find out because most of that money would have gone to charities. The volunteers working on the campaigns are the same people who would normally be volunteering at community centers and hospitals.

How much money and how many volunteer hours would have saved GLASS? How many potential donors and volunteers gave to No on 8 instead?

When you look for the bad in mankind, expecting to find it, you surely will.

- Abraham Lincoln.


[ Parent ]
Great post
Yea, Prop 8 and fighting it cost over 80 million. That would buy a shit load of shoes, dinners and temp or perm housing for a bunch of homeless GLBTQ kids.  What a fucking waste.  Those GD Christianists make me puke.  

vanhattan

[ Parent ]
Deep in the Hole for Some Time
For the year ended 12/31/2007 (which the didn't file until last October) they had a deficit of $1.4 million and had a negative net asset value approaching $3 million.

For Terry's and Cheryl's sake, I hope that they paid all of their payroll/withholding taxes. If not, they are personally responsible and it cannot be discharged in the bankruptcy.

Bottom line, BTW, was payroll completely over what they could reasonably afford.

"Neither Lifestyle nor Agenda"

http://tips-q.com


No way
"reasonably afford" is not reasonable.  When you need more staff and more specialties, managements job is to either find the funding or scale back the mission.  The know-nothing board lackies did neither.

They stood by while the ship sank and did nothing.  Again, this is not a economy/cutbacks/community fundraising issue - it's a management failure.


[ Parent ]
This is a FAILURE OF MANAGEMENT
This is the typical "no one is actually accountable" kind of excuse-making that created the NO ON 8 disaster.  If any of the board had a clue what they were doing - they would have hired a skilled, high-powered grant writer several years ago when it was made crystal clear that their were state and county funding cuts coming.

A bunch of uninformed, unqualified board members (who are friends of somebody) make another dumbass decision because they don't want to take the time to succeed. Just so they can go to cocktail parties and talk about how involved with the "community" they are.

Even here, it's clear DeCrescenzo is more interested in thumping her chest at the wailing wall than looking at the carefully crafted alternative her own staff are offering.  I don't care how nice DeCrescenzo is in an interview - that doesn't make her qualified to be a board member!

This IS NOT an issue of fundraising in the L.A. gay community - it is an issue of poor management! Again, a bunch of dumbasses who don't know enough to work towards the financial health of the organization or to bring in specialist who do know. All the unique and vital services provided by GLASS are eligible for grant-based funding. Anybody that has a clue what they're doing ramps up their grant-writing to philanthropic organization/committees/agencies in the face of govt cutbacks.

The same do-nothing, know-nothing, blissfully-ignorant GLBT poser hanger-ons that wreck gay social services throughout the state (and gave us NO ON 8) are at work here. No amount of money from the gay committee (again, NO ON 8) can keep that ship from crashing into the rocks.


How about the real story?
Wow, Ms. Ocamb!  Where's your good reporting on this story?  This is a horrible article full of wrong information, omission of any accurate reasoning for this bankruptcy and whitewashing.  GLASS has been mismanaged for years and may even be liable for fraudulent billings and illegal breaches of contracts.  This is not the story of an agency that is the victim of the recession or of thoughtlessness and neglect by the LGBT community. It is a victim of a lack of leadership, a lack of competence and a loss of focus on its mission.

My heart hurts today for those kids who have not been the priority or focus of GLASS' Administration for many years.  And, its Board of Directors should be ashamed by its lack of oversight for even more years.  Now, you dishonor the kids by allowing this myth of the agency as victim to be the explanation for its failure.  Unacceptable!

Maybe Ms. Ocamb could take some time to investigate and explain why three area agencies (all doing quite well despite "flat funding,") decided not to take over GLASS when Ms. DeCrescenzo approached them about it and spent many months in negotiations.  Maybe she can share how much money Ms. DeCrescenzo was asking for from those agencies to buy her out of her contract?  Or how much money Ms. DeCrescenzo made while her agency was millions in debt?  

With every question that wasn't asked for this story, you would find more explanations for the failure of GLASS.  And every single one would lead back to failed Administration.

Sad, very sad indeed.


So right on...
I totally agree, this was a really poor softball interview that didn't reflect any research into the issue at all.  There's an anonymous commenter of Joe.My.God who is loaded up with excuses for the inevitability of the board's move who is also is a friend of the board.

[ Parent ]
Management and compensation...
Ms. DeCrecesnzo was paid $136,000 in 2007 tax year.  While that isn't chump change, it's seems to be below scale for LA gay organizations.  GLASS isn't a small organization, with a $12 million budget.  For example, Lorri Jean is paid $240,000 a year at the Center (Tax Year 2006).  (The Center was about 3 times the budget at the time.  Interesting, Lorri's COO, Chief Admin Officer, and CFO all made about the same or more $131,000 - $163,000.)  Ms. DeCrecenszo wasn't raking it in by any means.

What else you can learn from the 990 is that despite a $12 million budget, just over $200,000 was raised from individuals.  That's pitiful.  A community non-profit raising about 1.5% of it's budget from individuals and relying on government for the rest?  No grant writer is that good.  

And with a tanked stock market, foundation funding will be very tight over the next year or more.  Mix in that most foundations like to force policy by pocketbook and dictate the terms to organizations, a program that is as basic as what GLASS provides doesn't leave much room for an way out.  

Where GLASS, the Board and the CEO failed was in inspiring the community to the work they do.  If Gay Angelenos will dumps hundreds of thousands, if not millions, to do-nothing "political" groups like HRC, GLAAD, and EqCa, than GLASS should've worked harder helping the community understand that in many cases, their mission is life and death.  That's where they failed.  Not by failing to invest in a "Grant Writer" but by failing to invest in their own brand.  GLASS has no identity and while the work they do is unbelievably critical, the community as a whole won't even notice they are gone.  


Still not getting it
LeftyBrian:

I appreciate that you're trying to give a non-profit industry standard analysis of the GLASS situation.  But, believe me, this is a tale of people doing the wrong things.  Many tried to make GLASS the outstanding organization it could have been. But Ms. DeCrescenzo stood in the way by honoring loyalty over competence, punishing any employee that dared to improve services and alienating supporters by not properly utilizing their resources.  The community would have rallied around GLASS if it was run properly and ethically.  And, in the end, it was more important for Ms. DeCrescenzo to find a way to get the remaining years of her contract bought out (to the tune of over half a million dollars) than to save the agency for the children that so need it.


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