Political Conflict and Financial Troubles Sink Q Center

Wednesday, December 24, 2014

GoLocal News Team

Former board members continue to lay blame on each other for the collapse of the Q Center, following the Dec. 18 resignation of its board of directors.

Development Director Karen Petersen and Executive Director Barbara McCullough-Jones resigned earlier this month amid widespread talk of financial mismanagement.

In a move announced Friday, LGBT political advocacy group Basic Rights Oregon (BRO) stepped in and provided $50,000 for the organization to meet short term cash flow needs, and an interim board of directors was put into place.

Mounting trouble at the organization was documented as early as April 2013. In a Performance Improvement Plan, the board of directors outlined several areas in which McCullough-Jones needed to improve -- with donor relations at the top of the list. Other areas noted for improvement were community relations, staff management, and public appearances.

Ousted Q Center board chair Aaron Hall said political infighting impeded fundraising efforts. Hall claimed a cadre of insiders worked to remove then-executive director Barbara McCullough-Jones. According to Hall, intrigue against McCullough-Jones affected the organization’s ability to fundraise. Hall resisted the 90-day performance improvement plan.

Former board members reached for comment denied allegations of trying to undermine McCullough-Jones, but refused to go on the record with comment.

However, one former Q Center board member, speaking on condition of anonymity, said some members of the board, although disappointed in McCullough-Jones' performance, wanted to see her succeed.

The former board member said that donor relations had indeed come apart. He said he gave $1,000 donation to the Q Center during a fundraising gala during and was never thanked.

The improvement plan listed that Nike, Basic Rights Oregon, and Pride NW among organizations where relationships needed repair.

"We saw people (donors) being ignored," he said. But he maintained that many board members tried to assist McCullough-Jones and offered to accompany her on visits to potential donors.

Financial Issues

McCullough-Jones was brought in to lead the organization in 2011 because of her experience fundraising and with running a community center and political action group.

The organization is roughly $125,000 in the red, compared with a $63,438 surplus it had in 2013, according to former treasurer and financial consultant to the Q Center Jim Johnson.

Johnson agreed to resign from the Q Center Board Dec. 18 as a condition of the Basic Rights Oregon bailout agreement. "I was one of four white guys who left the board," Johnson said.

An examination of IRS 990 filings from 2010-2014 show the organization operated at losses of $33,063, $49,641, and $29,410 in 2010, 2011, and 2012 respectively. Yet total spending on salaries grew between 2011 and 2013. However, Johnson said these numbers are not unusual for a young non-profit in the years following a global recession.

A 2013 audit of Q Center came back clean, notably making no mention of the organization’s financial situation. Contributions increased steadily from $199,493 in 2011, to $492,085 in 2012, to $737,853 in 2013. The rise in contributions coincided with a run up to the purchasing the center's building at 4115 N. Mississippi Ave, for over $1 million.

However, cash flow slowed in 2014. Despite solid financials the previous year, by the fall of 2014, prospects of having enough income to meet payroll came into question, according to Johnson. He said records show Petersen and McCullough-Jones did not raise adequate funds for the center.

Moving forward

The Q Center will navigate the remainder of the year with $50,000 from BRO. BRO Executive Director Jeana Frazzini said Friday she does not foresee the closure of the center, and the interim board will work toward that, with the support of a BRO-appointed advisory committee.

She emphasized the outlook was positive. “This is an opportunity, coming out of crisis.”

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