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About Just out. (Portland, OR) 1983-2013 | View Entire Issue (Jan. 22, 1999)
g Ju st mmI ' January 22. 1999 BY LINDA KUEWER fîïïîJÎTlnews R ising from the A shes ? With the future of Phoenix Rising Foundation up in the air, there also are questions about the fate Continued from the cover of the Sexual Minority Youth ncorporated as a nonprofit agency in 1978, Recreation Phoenix Rising touts itself as the “only among many Center, other explicitly identified sexual minority nonprofit services social services agency in Oregon,” with a mis sion to “promote the common interests and well-being of lesbian, gay, bisexual and transsex ual people through mental health, education and other support services.” The agency has sought to fulfill its charge via been embezzled through unauthorized checks sought support around health, family and com an array of services, among them several youth- and unaccounted for cash” totaling roughly ing-out issues. Elliott says he has tried counseling services related projects, including the recent establish $40,000. Guenther says neither she nor the board had that are not specifically aimed at the sexual ment of the Sexual Minority Youth Recreation Center, a comfy drop-in facility situated at the any inkling about the agency’s financial situa minorities community. “It’s simply not the same. It’s more comfort tion because “[the employee] presented very east end of the Burnside Bridge in Portland. able [at Phoenix Rising!,” he explains. “They detailed and impressive monthly and quarterly SMYRC is a place where queer kids can hang out together in an environment that often financial statements that indicated everything seem to be more up on what affects us as gay people.” is a refuge from a more unrelenting world. Since was fine.” The Rev. Roy Cole, pastor of Metropolitan Guenther says there was no reason to think SMYRC was spawned from Phoenix Rising, its differently, and when she learned to the con Community Church of Portland, says he often future, too, is precarious. refers people to Phoenix Rising for support. “We’re just not sure what’s going to happen trary, she was shocked. “I frequently talk to people who are looking “Whenever a traumatic event happens, you at this point,” Guenther told Just Out during a for assistance around coming out, gender identi experience it on a cellular level,” says Guenther. Jan. 15 interview. “We’ll just have to see.” According to Guenther, on Jan. 11 Phoenix “You feel fear, terror, panic, dizziness, a racing ty, or just the general stresses of life,” says Cole, who interned at the agency in 1996 as part of his Rising’s board voted to close the agency by mid- heart...” After realizing the weightiness of the matter, master’s degree program. “What I hear from February. She says the primary reason behind the dra Guenther says she and the board took several them is that they are in a fragile place and it’s matic action “is that as a small, independent, actions, including filing a police report. (An much safer for them to be in an environment that openly embraces them, rather than going to nonprofit agency primarily serving low-income investigation is ongoing.) The agency’s investment reserves of an esti a mainstream organization.” clients, Phoenix Rising simply cannot generate Cole notes that growing numbers of thera mated $115,000 were liquidated, Guenther says, the cost of doing business.” According to Guenther, the agency’s clinical to pay off half the amount due to the IRS, bring pists in private practice are identifying as gay or services deficit has averaged $13,000 a month state payroll liabilities up to date, and pay down gay-friendly. “But many of the people who go to Phoenix a large portion of the other overdue bills. A bal since the agency’s fiscal year began in July. A recent financial analysis, she adds, ance of approximately $35,000 is owed to the Rising are low-income, and Phoenix Rising has a sliding scale,” he says, adding that private revealed the average fee collected for counseling IRS and $15,000 to other creditors. Staff salaries were sliced by 10 percent, and practice therapists “may not be able to take on was $51.50, while the estimated cost of doing someone new was brought in to handle finances. clients at a reduced rate.” business is roughly $90 per session. When asked where he would turn if Phoenix Guenther says the board pondered cost The agency began charging clients a $20 fee for Rising were no more, Elliott answered Project cutting measures, like slashing administrative the initial intake and assessment process, and an staff to the bare minimum, “but that scenario insurance claim was filed against the agency’s Quest, a nonprofit agency that in part provides counseling and support services to people raised the issue of whether the agency could $50,000 fidelity bond. Still, Guenther says the financial woes have impacted by HIV, as well as those interested in adequately provide the leadership, supervision been compounded by an estimated 50 percent personal growth issues. and supportive activities crucial to holding an Lusijah Marx is a clinical psychologist and increasingly complex standard of care, contract drop-off in HIV-positive clientele during the reporting requirements, insurance and client past six months, “plunging from $12,000 a Project Quest’s clinical director. Though she billing, and client record keeping and monitor month billable to $6,000 or less monthly, so concedes the mental health profession is gener anticipated revenues have not materialized.” ing.” ally moving toward more acceptance of queer She says the board concluded the agency Guenther says it’s unclear why there was a folk, it still has a long way to go. could not provide the professional and account drop-off. Additionally, holiday fund-raising She says she too often hears stories about able level of services with such a painful, yet efforts have fallen far short of expectations. therapists pushing to change a client’s sexual necessary, cut back. In short, Guenther says, Phoenix Rising “is orientation. Another critical determining factor centered in the untenable position of owing the IRS and “Even in the last month I’ve heard such on the loss of agency operating reserves that other creditors $50,000, while our agency things,” she says. Guenther says “normally carried the agency reserves of $25,000 are rapidly being depleted. Given that, Marx—who estimates 75 per through the ups and downs of the counseling With the loss rate of $13,000 or more a month, cent of the roughly 300 people to whom Project business, and [have] sustained the growth of ser obviously in two months at the outside we will Quest provides services annually are queer— vices for the past four years.” be out of business.” says she has a great concern about the potential So what happened to the reserves? Guen Guenther tells Just Out that despite the Jan. loss of a place where people feel safe. ther, who became the agency’s executive direc 11 vote for closure, she will ask the board to tor in 1994, says this past July she discovered consider another option during a meeting slated uggestions abound that Phoenix Rising’s “suspected financial malfeasance” by a Phoenix for the night of Jan. 21. She says she has been current predicament stems from lackluster Rising employee who has since left the agency. exploring the possibility of a merger, and in the board oversight and weak management; some, That person, she says, was responsible for han past few days has met with representatives from however, maintain larger forces may ultimately dling the agency’s finances. two mental health agencies that may be inter be to blame. Guenther says she made the discovery ested in pursuing some form of coupling. Jeanne Gould, who for many years worked “through the unique experience of receiving If a merger does occur, it’s unknown at this for the Multnomah County Health Department notice that the Ilntemal Revenue Service] point what Phoenix Rising services, programs in the area of HIV services, assesses that a small, levied the agency’s accounts for failure to pay and staff would be retained. independent mental health agency has little federal payroll taxes for a period of nine Still, Guenther says, “the better choice is to chance of surviving in the current climate. months.” affiliate than not survive.” “Things have changed so much,” she says, She says she then discovered that state pay citing the shift in recent years toward a more roll taxes had not been paid in six months, not hatever the outcome of the imbroglio, complex managed-care environment. to mention many routine bills; the combined clients will be impacted. Clients like “There’s no doubt in my mind that a small debt to the IRS, state and vendors was approxi Joseph Elliott, who says he has utilized Phoenix agency today has to merge to survive,” says mately $125,000. Rising’s counseling services for a decade. Gould. “The internal problems (at Phoenix Ris Additionally, Guenther says there was cause “They have been wonderful to me as a gay ing] may have hastened the situation, but a for concern “about the possibility that funds had man,” says the 40-year-old Portlander, who change was going to have to happen regardless. I a date for passion Portland’s Human Rights Campaign Fund Raising Gala Saturday Feb. 13, ‘99 Portland Hilton Featured Speakers: Dick Gephardt, Ron Wyden, David Mixner and Comedian Bob Smith Tickets are $150 per person S HUMAN RIGHTS CAMPAIGN call 1 - 800 - 494-8497 seven days a week from 7am to 4pm For More Information Call 503/244-6951 W