October 21, 2025
This week, the Pride Center of Vermont Board of Directors met for frank and forward-looking discussions about the organization’s future. After careful consideration of several financial scenarios and a full review of the conditions that led to the operational pause, the Board agreed to a general strategy to stabilize the organization, rebuild trust, and begin laying the groundwork for a renewed Pride Center of Vermont. The Board intends to secure the future of PCVT by using this moment to stabilize finances, improve systems for accountability, and build a clear, transparent plan for executing on our mission to serve 2STLGBQIA+ Vermonters. In this update, we hope to provide an accounting of the facts that led to this moment, and the Board’s plan to move forward.
How We Got Here
For many years, the Pride Center’s primary funding source has been state grants that rely on a reimbursement funding model. This means the Pride Center needed to come up with the funds to provide services up-front, with the hope of reimbursement later. In practice, this requires small nonprofits to have a large amount of cash on hand to cover program expenses and overhead, with often unpredictably timed reimbursements. A 2023 survey of nonprofit workforce dynamics from the National Council of Nonprofits had this to say about the model: “The system of requiring performance first and seeking reimbursement later imposes a burden on service providers to essentially front the governments’ start-up costs and trust that the government program management and accounts payable processes are properly functioning.” (https://www.councilofnonprofits.org/files/media/documents/2023/2023-nonprofit-workforce-survey-results.pdf). Under this reimbursement model, the Pride Center repeatedly found itself in a situation where, despite grant funding awarded to cover most staff hours, regular delays in reimbursement of those grants threatened the organization’s ability to meet payroll due to insufficient cash flow. Over the years, debt accumulated from these funding gaps, leaving little room for flexibility in a moment of crisis.
That is, unfortunately, the dynamic that has led us to this moment. The situation became more dire earlier this year, when the organization’s HIV prevention and testing grant was unexpectedly reduced by $200,000 due to shifts in State and Federal funding priorities and policy. These funds supported, in whole or in part, four staff positions. Additionally, a portion of the Trans Program had originally been built using one-time funding without a long-term sustainability plan. As a result, the organization inherited more staffing than its recurring budget could support, even though every position was essential to maintaining core community services. In an attempt to preserve the positions of staff doing critical work, we made a community appeal around the HIV funding reduction and began exploring options for operating with this reduced funding level, which included cutting staff hours and pursuing alternative, non-restricted private funding sources. Seeing no other way to avoid furloughing staff, a member of the Board loaned the organization additional funds to prevent the Center from missing payroll. While generous, this underscored a deeper problem: the Pride Center’s financial model had become structurally unstable. Those loans and stopgap measures were not a solution; they were symptoms of an organization that needed serious intervention.
Other unexpected complications arose: the sale of the building that houses our physical space fell through, throwing a wrench in our plans to significantly reduce overhead costs by ending our lease early and moving to a remote workplace model. We were locked into an exorbitant health insurance plan. We were passed over for grants we felt optimistic about, with funders consistently citing an unprecedented number of applicants due to federal funding cuts. The Pride event fundraising fell short of projections. Unexpected expenses arose. In short, we thought we could find a way to make it until the next reimbursement payment, and we couldn’t.
When, two weeks ago, another reimbursement delay hit, the organization was again left without the funds needed to cover the next payroll on time, and without credit available to hold us over, as PCVT had used in the past. At this time, the Board of Directors felt it was inappropriate to ask staff to work hours that we had no guaranteed way to pay, or guaranteed timeline on which to do so. The decision to rapidly pause operations also factored in the need to make sure that staff would be paid both for their time worked and for up to two weeks of accrued paid time off. It was a painful but pragmatic decision, one made to protect what staff were owed, uphold our obligations as an employer, and prevent further harm in the face of deep uncertainty. This was the culmination of structural financial issues, and it would have been unfair to furlough employees knowing the same issue could arise again. The Board recognized that a short-term fix would only postpone a deeper reckoning; true stability required stepping back to assess how we got here and how we can move forward more responsibly. Even with a donor appeal, the structural issues would persist. With this information, the Board determined it was in the interest of the organization’s long-term stability to, with very little notice, pause operations before the next payroll cycle began.
This decision, while devastating, was made to break a cycle that was putting staff and the organization at risk, and to act responsibly in line with legal, regulatory, and ethical considerations. We know the timing of this decision caused deep emotional and financial pain for our staff and anxiety throughout Vermont’s queer community, and we are incredibly sorry for that harm.
While the unpredictability of reimbursement-based state funding played a role, the core issue was structural rather than situational. Fundraising efforts did not meet operating needs. A prior deficit resulted in the elimination of the organization’s Development role, and though recruiting for new members, the volunteer Board lacked sufficient development expertise. Additionally, our Executive Director, who bravely stepped up into the role from another position on staff, was not provided with the professional development or infrastructure necessary to succeed. These were failures of organizational stewardship. With new board members now in place who bring deep nonprofit management strategy and financial planning expertise, and a continued focus on recruiting for and seeking mentorship around development expertise, we are determined to do this right.
Where We Are Now & What Comes Next
In order to better understand how we got here, the Board (with third-party partners) is conducting a full financial review and operational retrospective. We are using this pause to examine every aspect of the Pride Center’s operations, finances, and governance. We are conducting a line-by-line review of budgets, grants, and obligations to ensure this situation never happens again. We are making every effort to re-open the Pride Center on more solid financial footing, with improved mechanisms for oversight.
Already, the Board has implemented immediate governance reforms, including tighter oversight protocols, strengthened financial oversight from new Board expertise, more thorough scenario planning for both tactical and strategic decision-making, and deeper engagement of external legal and accounting advisors to oversee compliance and fiscal recovery.
We are also working closely with partners across Vermont to explore ways to continue offering essential services. For instance, yesterday we announced that the SafeSpace Anti-Violence Program will be continuing under the Vermont Network. At the same time, we are laying the foundation for the Pride Center’s future. We see this as a chance to reassess what queer Vermonters need from a Pride Center today. We believe this pause, as painful as it is, represents an opportunity to correct course and build something stronger, more sustainable, and more inclusive than ever before. We are proceeding with an emergent strategy approach; one that evolves through learning and partnership, not rigid plans. The ultimate architects of that strategy will be you, our community.
The significant and encouraging community support is accompanied by understandable confusion and mistrust. We know that rebuilding trust requires more than financial fixes. It requires openness and collaboration. For those interested in offering financial support, but who have questions about financial priorities, we are preparing a donor FAQ and will continue to be in conversation with our partners. Over the coming weeks, we will also launch multiple opportunities for community involvement, including but not limited to:
- Open community forums and listening sessions to hear directly from 2STLGBQIA+ Vermonters about what they need from a Pride Center.
- An advisory group of program participants, former staff, community leaders, partners, and funders to guide the rebuild process.
- Online engagement tools to share ideas, feedback, and questions transparently.
- Regular public updates on progress, challenges, and next steps.
Wherever possible, we aspire to compensate impacted community members for their time spent sharing their perspectives. Our intention is clear: the Pride Center’s future will not be rebuilt behind closed doors or behind computer screens. It will be shaped with and by the community it serves.
If you have ideas, feedback, or energy to contribute, we want to hear from you. You can reach us at board@pridecentervt.org. This is, and always will be, your Pride Center.