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 Jamie Leeds, chef extraordinaire, and owner of Hank’s Oyster Bars, as she ventures into some new areas. Leeds is an award-winning Washington, D.C.–area chef, restaurateur, and entrepreneur with more than three decades of experience shaping the region’s dining scene.
Her first new venture is a restaurant opening in Alexandria this week. It will be called Hank’s Pasta Bar, bringing a personalized twist to classic Italian dining with a hiddenrestaurant-inside-a-restaurant in Old Town, Alexandria. The new trattoria is above Hank’s Oyster Bar, and will feature a build-your-own menu, marking a new direction for Leeds in partnership with chef Darren Norris. Norris brings more than three decades of experience to Hank’s Pasta Bar, with a foundation grounded in Italian cooking. The grand opening was scheduled for May 14. The elevated casual eatery blends an inventive chef-driven menu with an easy-going, sit-down dining experience that puts guests in charge. Hank’s Pasta Bar bridges the gap between elevated fast casual, like Norris’s Shibuya, and full-service dining, like Leeds’s Hank’s Oyster Bar. Diners order electronically at the table, but unlike fast casuals, food and beverages are delivered on plate ware, and a server is on site at all times.
The restaurant-inside-a-restaurant, welcomes guests to dine in with a full bar, including Italian wines and craft cocktails, maintaining its focus on traditional Italian fare with contemporary touches, including a build-your-own pasta bowl experience starting at $16. Create your own pasta bowl from seven artisanal pastas (including gluten-free), nine made-in-house sauces, proteins, vegetables, and toppings. Leeds said, “It’s the kind of place you’d find down a side street in a Tuscan hill town, after being tipped off by a friend who says, ‘trust me.’ If you know, you know.”
The restaurant will continue Hank’s community partnerships, including with Real Food for Kids, supporting programs that improve school food and nutrition equity.
In addition to this you should try Jaimie’s other new venture. Back Door Taco at Hank’s in Dupont Circle. You walk down the alley from 17th Street to the back door of Hank’s, and enter a small patio to partake of great tacos and interesting cocktails.
District of Columbia
HIV Vaccine Awareness Day set for May 18
Whitman-Walker joins nationwide recognition of efforts to develop vaccine
Whitman-Walker Health, the D.C.-based community healthcare center that specializes in HIV/AIDS and LGBTQ-related health services, will join health care advocates from across the country to support efforts to develop an HIV vaccine on HIV Vaccine Awareness Day on May 18.
“HIV Awareness Day, observed annually on May 18, was established to recognize and thank the volunteers, scientists, health professionals, and community members working toward a safe and effective prevention HIV vaccine,” Whitman-Walker said in a statement.
“Led by the National Institutes of Health’s National Institute of Allergy and Infectious Diseases (NIAID), the day is also an opportunity to educate communities about the critical importance of preventive HIV vaccine research,” the statement says.
It adds, “The reality is that any new vaccine discovery must be built community by community, institution by institution, and then it must reach everyone – especially the communities who have carried the heaviest burden of this epidemic.”
On its own website, the National Institutes of Health says HIV Vaccine Awareness Day also highlights its longstanding efforts, coordinated by its Office of AIDS Research, to support researchers’ efforts to develop an HIV vaccine.
“Researchers are making promising headway in efforts to develop a safe, effective HIV vaccine,” it says in a statement on its website.
A Whitman-Walker spokesperson said Whitman-Walker was not holding a specific event to observe HIV Vaccine Awareness Day, but it will recognize the day as a way of encouragement for its ongoing work to address the AIDS epidemic and support for vaccine research.
“Today, no one has to die from HIV,” said Whitman-Walker’s Health System division’s CEO, Dr. Heather Aaron in the Whitman-Walker statement. “We have the treatments, the technology, and the research to change outcomes, and yet people in our community are still dying from HIV//AIDS,” she said in the statement.
“That is unacceptable, and it is exactly why our work continues,” she added. “Here in D.C. with more focus on Southeast D.C., the Whitman-Walker Health System remains committed to making a difference through cutting-edge research, policy advocacy, and philanthropy, because fair access to life-saving treatment is not a privilege. It is a right.”
District of Columbia
Capital Stonewall Democrats endorses Janeese Lewis George for D.C. mayor
Group also backed D.C. Council, Congressional delegate, AG candidates
The Capital Stonewall Democrats, D.C.’s largest local LGBTQ political organization, announced on May 14 that it has endorsed D.C. Councilmember Janeese Lewis George (D-Ward 4) for mayor in the city’s June 16 Democratic primary.
Lewis George along with former D.C. Councilmember Kenyan McDuffie (D-At-Large) are considered by political observers to be the two leading candidates among the seven candidates competing in the Democratic primary election for mayor.
Both have strong, long-standing records of support on LGBTQ issues, indicating Capital Stonewall Democrats members, like LGBTQ voters across the city, are likely choosing a candidate based on non-LGBTQ related issues.
In a May 14 statement, the group announced its endorsements in seven other Democratic primary races, including D.C. Council Chair Phil Mendelson, who is running unopposed in the primary. Also endorsed is D.C. Councilmember Robert White (D-At-Large), who is one of five Democratic candidates competing for the position of D.C. delegate to the U.S. House of Representatives.
D.C. Councilmember Brooke Pinto (D-Ward 2) is among the four candidates competing with White for that post, and who like White has a strong record of support on LGBTQ issues.
In the At-Large D.C. Council race for which incumbent Anita Bonds is not running for re-election, Capital Stonewall Democrats has endorsed community activist and LGBTQ ally Oye Owolewa in a nine candidate race.
For the Ward 1 D.C. Council election, in which five LGBTQ supportive candidates are competing, the group did not make an endorsement because none of the candidate received a required 60 percent of the endorsement vote cast by Capital Stonewall Democrats members, according to the group’s former president, Howard Garrett.
The statement announcing its endorsements shows that it decided to list its “Preferred Ranking” of each of the Ward 1 Democratic candidates as part of the city’s newly implemented ranked choice voting system. It lists gay candidate Miguel Trindade Deramo as first, bisexual candidate Aparna Raj second, Jackie Reyes Yanes third, Rashida Brown fourth, and Terry Lynch fifth.
In the remaining ward Council races, Capital Stonewall Democrats endorsed Councilmember Matt Fruman (D-Ward 3), who is running unopposed for re-election; Councilmember Zachary Parker (D-Ward 5), the Council’s only gay member who is being challenged by two opponents; and Councilmember Charles Allen (D-Ward 6), who is running unopposed for re-election.
The group also chose not to make an endorsement in the special election for another At-Large D.C. Council seat that became vacant when then-Independent Councilmember McDuffie resigned to enable him to run for mayor as a Democrat. Under the city’s Home Rule Charter adopted by Congress, that at large sweat is restricted to a “non-majority party” candidate, meaning a non-Democrat.
The three candidates running for the seat, all Independents, include incumbent Doni Crawford, who was appointed to the seat earlier this year; former D.C. Councilmember Elissa Silverman; and Jacque Patterson. All three have expressed support on LGBTQ related issues.
“The organization’s endorsement process included candidate questionnaires, public forums, and direct voting by active CSD members,” the statement announcing its endorsements says. “Each endorsement reflects the collective voice of 173 LGBTQ+ Democrats who voted in the process and are committed to building lasting political power in the District,” according to the statement. “Candidates that reached 60 percent support received the endorsement.”
Garrett, the group’s former president, acknowledged that with nearly all candidates running in D.C. elections expressing strong support for the LGBTQ community, many if not most of the group’s members most likely chose a candidate based on issues other than LGBTQ related issues.
He said he believes Lewis George, who he is supporting and is viewed as a progressive candidate who self-identifies as a Democratic Socialist, compared to McDuffie, who is viewed as a moderate Democrat, captured the group’s endorsement based on the view that she is the best person to lead the city going forward.
“I believe that Capital Stonewall members voted for Janeese Lewis George because we’re tired of the status quo and we need a new, bold leader to not only move our city forward but also to stand up to Donald Trump and his administration,” Garrett told the Washington Blade.
McDuffie’s LGBTQ supporters, including former Capital Stonewall Democrats presidents David Meadows and Kurt Vorndran, have argued that McDuffie’s positions on a wide range of issues, including LGBTQ issues, show him to be the best candidates to lead the city at this time and In future years.
The group’s endorsement of Lewis George comes one week after GLAA DC, a nonpartisan LGBTQ advocacy group, awarded her its highest candidate rating of +10.
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