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PHOENIX - Phoenix Pride, the nonprofit organization behind Phoenix’s October Pride Festival and the Rainbows Festival in March, is filing for Chapter 11 bankruptcy. The organization is now asking the community to step up, actively searching for new backers.
Leaders pointed to a drop in corporate donations, blaming the current political climate and companies scaling back diversity, equity, and inclusion policies.
It is a harsh financial reality check, especially with Pride Month now underway. For more than 40 years, Phoenix Pride has been a mainstay in Phoenix.
What they're saying:
"Phoenix Pride is still here. We're still supporting our community. We're still operating," said Daniel Eckstrom, Phoenix Pride President.
Eckstrom says rising prices to operate, and the current political climate have impacted them.
"Since the administration took office, we've seen a really sharp decline in a lot of our support, a lot of our sponsorship," Eckstrom said.
Phoenix Pride has already cut about 22% from its budget.
"We are operating as business as usual. Obviously, the board is looking at different things to scale back," Eckstrom said.
As a 501(c)(3) nonprofit, the majority of Phoenix Pride's money comes from sponsors like Stacy's at Melrose, a Phoenix gay bar.
"They're really engrained in the local community and so, to kind of make sure that we're aligned with them, kind of helps build trust for other gay people," said Brandon Slayton, Stacy's at Melrose co-owner.
What's next:
Slayton says he hopes future Pride events will focus on local activities and creators rather than corporate sponsors.
"I'm kind of excited to see what those changes might be. I think that there's an opportunity for the community to come together and actually discuss some of the frustrations that have been around Phoenix Pride," Slayton said.
To get the community's input, Eckstrom says they recently sent out a survey.
"We want to ensure that, being in the fifth-largest city in the country, that Phoenix Pride is still here for generations to come," Eckstrom said.
Despite the bankruptcy filing, Phoenix Pride says its community grants and student scholarships are safe. Organization officials stated those specific funds are legally restricted and will remain untouched.