The Utah Pride Center on Wednesday said it would be suspending September operations and laying off staff amid financial instability.

One of the most prominent LGBTQ advocacy organizations in Utah, the center announced the changes in a newsletter Tuesday, first reported by Q Salt Lake Magazine. The staff shrank from 19 to 12 staff members, according to the magazine, which follows the departure of two co-CEOs within the last year.

The Utah Pride Center’s services include peer-support groups, therapy, suicide prevention services, community health resources, and education and training workshops. Those will be suspended until October while the center is closed, according to a statement.

“We at the Pride Center acknowledge the disappointment and outrage of the community regarding the instability of our organization. We know how important the Center is to you, and we solemnly apologize for letting you down,” the statement reads.

According to the newsletter, the pride center was facing “massive financial turmoil.” The organization says it’s hopeful it can get the center “back into shape,” but “the task at hand is monumental given the state of the Center’s finances and the earned negative reputation of the organization, so we don’t know what is going to happen, the Center might close, revive, or reset.”

The center said it will use that time for “restructuring and reimagining the future of this organization.”

“We are asking once again to grace us with your trust and give our committed team some time to put a plan in place until October 1st. We are dedicated to finding the answers on how to best serve the community going forward,” the organization said in its statement. “Reimagining the Center is a long overdue task. Our community has changed drastically in the past three decades, the number and diversity of resources, organizations, and services has increased, and the Center needs to reset its mission to stay relevant and supportive.”

The statement did not elaborate on the financial issues. But allegations of mismanagement have surrounded the center for several years, with a group a former employees suing the nonprofit in 2020, claiming they were wrongfully terminated amid poor management and financial turmoil, according to documents filed in federal court. That case was later dismissed.

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More recently, in a breach of contract lawsuit filed in Salt Lake’s 3rd District Court, the center alleges it paid a company $80,000 for security and emergency medical services during the June 2023 pride month celebration — that company, according to the complaint, never provided the center with certificates of insurance. The center claims it was not refunded the $80,000, and incurred an additional $100,000 in damages.

For reference, the center’s former executive director, Robert Moolman, reported just over $80,000 in compensation in 2020, according to the nonprofit’s form 990 posted on its website.

Though tax documents from years prior mostly show the pride center turning a profit, during the pandemic tax year it reported a net loss of ­$366,864, according to the form 990 listed on the Guidestar nonprofit database.

Most of the organization’s revenue comes from grants, gifts and contributions. In 2019, it reported $54,362 in revenue from fundraising events, $241,635 from government grants and $557,667 from other grants, gifts and contributions. That same year, it generated almost $300,000 from counseling services, according to tax documents, and over $41,000 from festival admissions.

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