LGBTQ+ support group closes over shortage of funds

The Spahr Center, which supports Marin County's LGBTQ+ community and people living with HIV, has suspended operations and laid off most of its employees. “It is with a heavy heart that we share with you the news,” read an announcement issued Friday.

The nonprofit has been receiving about $450,000 a year in federal Ryan White Care Act funds to provide case management, mental health support, counseling and other services to people living with HIV in Marin. The Ryan White money accounts for about 25% of the agency's $2.5 million budget.

The organization also sponsors support and discussion groups. Two Marin middle schools, Kent and Miller Creek, and eight high schools — Archie Williams, Novato, Redwood, San Andreas, San Marin, San Rafael, Tamalpais and Terra Linda — pay the nonprofit $5,000 a year to host “Q Groups” during school hours on school grounds.

In addition, the Spahr Center receives state funds to provide clean syringes, sterile glassware, and Narcan to people struggling with drug addiction.

Joe Tuohy, who in May became the nonprofit's fourth director since March 2022, said he is in talks with another Marin nonprofit about a possible merger of their agencies. He declined to identify the organization. “If that is successful,” Tuohy said, “we would bring back all or most of our programs under this new merged entity.”

As for how many of Spahr's laid off employees would be reinstated, he said, “That's yet to be determined.”

Tuohy said the Spahr Center was forced to shut down due to a lack of funds. Some employees who left the nonprofit recently assert that poor management decisions led to the current crisis.

“At the end of fiscal 2023 (June 30, 2023) the agency had an accumulated deficit of over $300,000,” Tuohy wrote in an email Wednesday. “That along with the loss of a 340B Pharmacy program is what pushed the agency over the brink.”

The federal 340B Pharmacy program allows the Spahr Center to purchase HIV medications at a reduced price. “The pharmacy that we partner with bills insurance at the full rate and it throws off revenue,” Tuohy said.

“In fiscal year 2022, it threw off about $300,000 in profit for Spahr.” Tuohy said that shortly after he became director revenue from the 340B program stopped flowing.

He discovered that the government had terminated Spahr's contract because his predecessor, Cindy Myers, had neglected to seek recertification. Tuohy reapplied and Spahr's contract was reinstated as of Jan. 1.

So far this year, however, the program has generated