Paul Bass Photo
Lights off: Inside the basement Gateway Community College outpost of Literacy Volunteers.
Literacy Volunteers of Greater New Haven fired five of its six employees as it launched a “deep dive” audit into its “dire” finances.
So confirmed a spokesperson for the half-century-old nonprofit, Derek Beere.
The organization had previously furloughed the five employees a month ago.
“We regret to inform you that we must make the difficult decision to terminate your employment” as of Tuesday, board Chair Keith French and Interim Executive Director Carolyn Kobsa informed employees in a letter sent Monday.
“This is not an easy decision to make, however the organization’s financial situation is dire. The fundraising/income generation that occurred this past year was not sufficient to cover the agency’s ongoing expenses as they exist today. Our plans are to restructure the agency over the next few months so that we can continue to serve our mission.”
A visit to the group’s basement offices at Gateway Community College Tuesday afternoon found the door open and the inside dark, and empty.
Beere Tuesday evening told the Independent that Kobsa — the one remaining employee — has “encouraged” the organization’s approximately 100 volunteer tutors to continue meeting with students to conduct literacy training. About 250 students are enrolled in the program.
The agency’s other two centers, in Meriden and the Naugatuck Valley, are in shared spaces and not currently staffed, according to Beere.
The state Department of Education approved a $81,089 federally funded grant to the organization. It commenced a review of the grant after the Independent first reported the agency’s furloughs last month. Beere said the agency is conducting its own “forensic” audit into its finances, a “deeper dive” separate from the state review.
The organization has decided not to draw down on that state grant for now, according to Beere.
“We have notified the Connecticut Department of Education of our financial situation and have withdrawn from state funding. As a result, we are no longer pursuing the grant previously under review. Our focus now is on restructuring the organization to develop a sustainable path forward,” Beere said.
The organization’s board issued a statement saying the firings were needed in order to “restructure over the next few months.”
“Despite these challenges, our tutoring programs and services remain operational thanks to the dedication of our volunteer tutors and the resilience of our students,” the statement continued.
The organization’s most recent 990 federal tax form, covering the 2022 fiscal year, reported $465,248 in revenues and $492,910 in expenses, for a $27,662 deficit. The form lists the organization’s mission as “serv[ing] literacy deficient students with volunteer tutors trained in workshops provided by tutor trainers.” Its website describes the mission as “help[ing] adult learners achieve their life goals through reading, acquiring a second language, obtaining citizenship or being able to enter a job training program by increasing their math skills.” The organization has been around for 50 years.
