Local
Trans group struggles with financial crisis
T.H.E. hit by IRS tax liens, possible suspension of city funds
Longtime activist Earline Budd is reportedly among THE staffers experiencing problems getting paid. (Blade file photo by Michael Key)
Transgender Health Empowerment, a non-profit group that has provided a wide range of services for D.C.’s transgender community for more than a decade, is struggling with a financial crisis that has prevented it from paying its employees on time and has triggered staff layoffs and resignations, according to multiple sources familiar with the organization.
Public records at the D.C. Recorder of Deeds office show that the IRS filed at least 10 liens against THE over the past three-and-a-half years. Most are due to THE’s failure to pay employee payroll taxes, the records show.
Sources familiar with the situation say the liens prompted the D.C. Department of Health to suspend some or all of its funding for THE for HIV/AIDS-related services. The funding suspension reportedly was triggered by a procurement rule that restricts city funding for vendors or contractors that are in violation of the law, including federal tax law, the sources said.
A former THE employee and current client said they each were told by THE staffers that a delay in city funding forced the group to cut back on its drop-in services at its headquarters at 1414 North Capitol Street, N.W., and to limit services to clients by appointment only.
“The whole month of March we didn’t get a paycheck,” said the former employee, who was laid off in April because of THE’s financial problems, the former employee told the Blade.
Among THE employees not getting paid or getting paid late are THE official and longtime transgender activist Earline Budd, THE Director of Programs Brian Watson, and transgender activist Jeri Hughes, sources familiar with the group said.
Top officials with THE and the Department of Health have not responded to repeated requests by the Blade for information about the cause of THE’s financial problems and the status of city funding for the group.
“At this particular time, there’s no comment,” Brian Devine, THE’s finance manager, told the Blade. Devine said THE Executive Director Anthony Hall also had no comment.
“We just had a board meeting and that was one of the issues we spoke of,” said Devine, adding that the board decided not to issue a statement about the situation at the present time.
DOH spokesperson Najma Roberts said she would make inquiries about the THE funding status when contacted by the Blade last week. As of press time this week she had not responded.
The Blade filed a Freedom of Information Act request with the DOH deputy general counsel, Phillip Husband, on April 3 seeking the information that the department has yet to release through Roberts, the press spokesperson. Husband said the department usually takes up to 15 business days to respond to a FOIA request.
“My biggest concern is THE’s clients,” said transgender activist Ruby Corado, director of Casa Ruby, an LGBT community center in Columbia Heights that caters to the Latino and transgender communities.
Corado said some of THE’s clients have been coming to Casa Ruby after being told that THE’s drop in center had curtailed its services.
Corado and other transgender activists called THE the D.C. area’s preeminent service provider and advocate for the transgender community.
They note that THE also operates the city’s only housing facility dedicated to homeless LGBT youth. The facility known as the Wanda Alston House has been nationally recognized as an innovative resource for LGBT youth that offers counseling, employment and vocational training, and other services.
Among THE programs funded by DOH is its highly acclaimed Comprehensive Risk Counseling Services or CRSC program, which offers risk reduction interventions for preventing HIV infection among transgender people, especially transgender women, whom experts say are at high risk for HIV. THE also offers HIV testing and counseling.
“THE is a transgender institution for D.C.,” Corado said. “There are a lot of people counting on its services, especially those living with HIV. It is an organization that cannot go away,” she said.
“So the question I have is what is the Department of Health doing about this,” Corado said. “Why aren’t they talking about what happens to those clients? Are those clients OK?”
Transgender activist Alexandra Beninda, who serves on the D.C. Human Rights Commission, was among those who praised THE for its work in the transgender community but said she was unaware that the group was having financial problems.
She said she hoped the community would rally in support of THE but expressed concern that news of the group’s problems had not gotten out to those who might be willing to help.
Mara Keisling, executive director of the D.C.-based National Center for Transgender Equality, said she, too, was unaware of the THE financial problems.
“They are the centerpiece for local transgender efforts,” Keisling said.
Records of the IRS liens against THE filed with the D.C. Recorder of Deeds show that between March 2010 and earlier this year the group owed the IRS a total of $260,075. The records don’t show how much of that amount was for unpaid taxes and how much, if any, was for interest and penalties.
The records show that THE has since made payments of $91,912 to pay off the back taxes and currently owes the IRS $168,163.
As a non-profit, tax-exempt organization, THE doesn’t pay taxes on its income from donors or from government grants and contracts. The records indicate that most of the money owed is for employee payroll taxes.
Due to THE’s refusal to comment on the matter it couldn’t immediately be determined what caused the underlying financial problems that prevented THE from paying its employee payroll taxes.
Ron Simmons, executive director of the D.C. AIDS service group Us Helping Us, which also receives city funding, said smaller community based groups like THE sometimes encounter cash flow problems when the city takes too long to reimburse the group for its services. He said DOH in the past has taken 90 days or longer to reimburse vendors and service providers.
“Among other things, they are the only LGBT homeless shelter for youth,” Simmons said. “We absolutely can’t let them go under,” he said of THE.
THE’s most recently filed IRS 990 finance report that is available for public viewing is for the fiscal year of Oct. 1, 2009 through Sept. 30, 2010.
The report shows that THE’s income for the year was $960,834 and its expenses came to $1,093,816, with a deficit of $132,982.
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Congratulations to Congresswoman Sarah McBride (D-Del.) on being honored with this year’s Stonewall Award from Whitman-Walker Health. Amy Nelson, senior director of Legal Services, said, “Congresswoman Sarah McBride is working to make healthcare accessible to all, and this award recognizes her support of healthcare as a human right. Our legal program supports families facing unprecedented challenges to stay healthy and safe – families that Congresswoman McBride champions with a deep understanding of the issues they face and the legislative expertise of how to support them.”
McBride, in a press release, said, “I am honored to accept this year’s Stonewall Award from Whitman-Walker Health — an organization that has spent 40 years doing vital work to ensure every person can access the dignity of care. In the wealthiest and most developed nation on earth, the ability to receive care should not be a matter of luck—it should be the law of the land. I am proud to be recognized as a partner in this work and to support Whitman-Walker Health in their mission to build a healthier society for all.”
Congratulations also to Wes Drummond who will join Clear Space Theatre Company in Rehoboth Beach, Del., as its third artistic director. Managing Director Joe Gfaller said, “This is an exciting moment of growth for Clear Space as we welcome Wes to join our remarkable team. I am confident he will be an excellent partner as we work with our entire staff, board, and committed team of volunteers, to ensure Clear Space can achieve its full potential in pursuit of our mission to unite and enrich our community through every production on stage, and every arts-based learning program we offer throughout our community.”
On accepting the position Drummond said, “I’m honored to join Clear Space Theatre Company as artistic director, and beyond excited for what we’re about to create together. Clear Space has established itself as a vital and vibrant part of the cultural life of coastal Delaware, and I feel incredibly fortunate to step into this next chapter alongside such a passionate and dedicated team. Rehoboth Beach is a place defined by creativity and community, and I look forward to listening, learning, and building meaningful relationships across the region in the months ahead. My vision is to help Clear Space continue to grow as a bold, forward-thinking, cultural force, that champions fearless storytelling.”
Drummond served in leadership roles at Duluth Playhouse in Duluth, Minn., from 2021 to 2026, including four years as executive director followed by one year as executive producing artistic director, guiding the organization through a period of significant transformation and stability in the wake of the COVID-19 pandemic. As a director, he has worked extensively in New York City, Chicago, and at regional theaters across the country, directing both musical theater and plays with a focus on storytelling that bridges classical works with contemporary perspectives. He has collaborated with leading figures in the industry, including Tony Award-winning director Matthew Warchus, and Tony-nominated director Michael Greif. He is an associate member of the Stage Directors and Choreographers Society.
Wes earned his MFA in directing, Penn State University, where he studied under Tony-nominated director, Susan H. Schulman.
Virginia
Va. Supreme Court invalidates Democrat-backed redistricting plan
Voters narrowly approved new congressional districts last month
The Virginia Supreme Court on Friday struck down a Democrat-backed redistricting plan that voters approved last month.
Ten of 11 of Virginia’s congressional districts favor Democrats in the plan that passed by a 51-48 vote margin in last month’s referendum.
The Human Rights Campaign PAC is among the groups that support it. The court by a 4-3 majority invalidated the referendum results.
District of Columbia
Maren Morris to headline Capital Pride Concert
Grammy award-winning singer/songwriter came out as bisexual in 2024
Capital Pride Alliance, the group that organizes D.C.’s annual LGBTQ Pride events, announced on May 7 that nationally acclaimed singer-songwriter Maren Morris, who identifies as bisexual, will be the headline performer at this year’s Capital Pride Concert scheduled for June 21.
The concert takes place as part of the annual Capital Pride Festival held on Pennsylvania Avenue, N.W., usually between 3rd Street near the U.S. Capitol and 9th Street.
“Morris, known for her genre-blending sound and outspoken support of LGBTQ+ rights, will be joined by a standout lineup, including acclaimed queer rapper Leikeli47, pop icon Lisa Lisa, Juno-nominated producer and DJ from the ‘Heated Rivalry’ soundtrack, Harrison, and ‘RuPaul’s Drag Race’ Season 18 winner Myki Meeks,” according to a statement released by Capital Pride.
“In a moment when LGBTQ+ people are being challenged across the country, the Capital Pride Concert is a space where our community is fully seen and heard,” Ryan Bos, the Capital Pride Alliance CEO and president, said in the statement. “Bringing Maren Morris to the stage reflects this year’s theme: Exist, Resist, Have the Audacity,” Bos said.
The statement notes that the concert takes place as part of the annual D.C. Pride Festival, which is open to the public free of charge, with tickets available for purchase for specific areas listed as the Capital Stage Pit Zone and the VIP Concert Zone.
It says the festival takes place from 12 –10 p.m. and points out that in addition to the music performed by multiple other performers on several stages, festival attendees “can explore hundreds of exhibitors, community organizations, and artisans, along with multiple food courts and beverage gardens throughout the festival footprint.”
Information on the Capital Pride Alliance website shows that the festival takes place one day after the annual Capital Pride Parade, scheduled for June 20 and which is expected to travel from 14th and T Streets, N.W., to Pennsylvania Ave., N.W., where it is expected to end at 9th Street.
The statement adds that following the stage performances during the June 21 festival, which are expected to conclude around 8 p.m., “the celebration will continue with the Capitol Sunset Dance Party, closing out the evening against the backdrop of the U.S. Capitol.”
The online publication Today, which is part of the NBC “Today” television show, reported that Morris came out as bisexual in a 2024 during Pride. It reports Morris “shared several images of herself holding a Pride flag to mark the occasion, writing, ‘Happy to be the B in LGBTQ+’”
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