Colorado Healing Fund addresses concerns over donations collected for Club Q survivors, victim families

COLORADO SPRINGS, Colo. (KRDO) -- Thursday, officials with the Colorado Healing Fund (CHF) held a virtual press conference to address some of the concerns surrounding how the non-profit handles donations.

Following the Club Q mass shooting, which left five patrons of a Colorado Springs LGBTQ bar dead, the CHF was activated to begin accepting donations and distributing them to people who need help.

Sunday, survivors from other mass shootings in Colorado and across the country held a public press conference urging people not to donate to the CHF. They said the CHF was taking some of the donations and keeping it within the organization.

However, 13 Investigates found many nonprofits take money for overhead and administrative costs. Still, some weren't pleased with how that worked. CHF told 13 Investigates it took 10% of all donations for administrative fees.

During the virtual press conference, CHF's Executive Director Jordan Finegan said the non-profit has tried outsourcing the cost for the 10% fee. However, currently, the CHF doesn't qualify for state or federal funding. It also doesn't have access to grants.

The non-profit's annual budget is roughly $130,00 a year, which includes a salary for one staff person. Finegan said the budget also goes towards an annual audit and other miscellaneous things a small non-profit has to account for.

Finegan did announce that as of Thursday morning, someone came forward saying they could "very likely" undertake the administrative fee, thus allowing the CHF to donate 100% of the proceeds to people affected by events like the Club Q shooting.

A member of the board of trustees Steve Siegel said the CHF works in three steps when it comes to initially distributing money; the safety and security of people affected, individual needs and giving victims a chance to speak with advocates on what they need, predicting and preparing how to disperse funds after the initial aftermath of a mass shooting.

According to Finegan, the CHF has received $1.8 million in donations since it was activated, Sunday, Nov. 20. So far, $220,000 in direct cash has been distributed to the 24 injured and five families of the deceased. An additional $125,000 has gone towards other needs like car payments, rent, utilities, lost wages, and more.

Cynthia Coffman, a former Colorado Attorney general and current volunteer who chairs the board of the CHF said they've also received more than a dozen donations in round-trip flights and other donations linked to lodging for families that are not in Colorado Springs.

However, Finegan said all of the money currently disperse has not come from the donations, it's come from a "seed fund" CHF has in place that exists constantly outside of collecting donations.

According to Finegan, if it wasn't for the seed fund, they wouldn't be able to get the money out as quickly as they do. She explained donations typically take about 30 days for a donation to hit someone's bank account.

"No other funds are able to get money out as quickly as we are. And I think that's really, really critical with us," said Finegan.

She went on to state they wouldn't speak specifically about the amount of cash disbursement given to individuals because that's a breach of victim confidentiality and want to ensure people receiving help feel safe to do so.

At this time, Finegan explained the $1.8 million in donations has yet to actually hit the CHF's bank account.

According to Siegel, if they don't receive the funds and disperse them correctly, it could impact other resources that victims have available for them.

"For instance, if this isn't done properly, they could have a tax liability. If this isn't done properly, they could lose their Medicare or Medicaid or food support help that they're getting there. It's a delicate balancing act to make sure that the pieces of the puzzle of the support for folks are done properly and are done in a way that doesn't harm them on the back end," explained Siegel.

"There are realities for how long it takes for a corporation, say, to give a pledge and then process that pledge."

According to Finegan, the seed fund has also been utilized to give more than what the CHF has collected in the past, including during the Colorado Springs Mother's Day mass shooting.

On Mother's Day in 2021, a man romantically involved with a victim opened fire inside a mobile home during a birthday and Mother's Day celebration. Seven people, including the shooter, died in that attack.

"We only collected about $32,000. We gave $75K because there was that need there and that was what went out very quickly. But it also was a reflection of us seeing what the needs were through the victim advocates," said Finegan.

She explained that CHF hoped to receive the funds back to replenish the additional $43,000, however, that didn't happen.

"But that's okay because we have that seed fund there to help," said Finegan.

When it comes to the long term, Siegel said they can't predict how long people will need help.

According to Finegan, the CHF accepts donations up to six months after a tragedy. However, they will continue helping people if they come forward.

When it comes to how money is being spent, Finegan stated the CHF doesn't give money directly to victims. The funds go towards victim advocates and local organizations in the specific area affected by a tragedy, which is currently victim advocates and charitable groups in Colorado Springs.

Finegan did state the CHF is working on building an advisory committee that will help inform the non-profit going forward.

CHF was asked whether or not the survivors who urged people not to donate reached out beforehand.

"No. No one reached out to us," said Finegan. She went on to say they weren't aware the press conference was going to happen.

Siegel did point out though that communication and speaking to people following mass tragedies like the Club Q shooting can be difficult.

"I will say that it is not uncommon for the level of communication in the beginning of an event to be very challenging, very difficult. And people have needs and people have fears and people have prior concerns that were based on experiences or that they had, and that colors the way they're assuming things are going," Siegel said. "I'm very comfortable in saying that there is 100% of altruism in the work of the Colorado Healing Fund. We run a tight ship. We do not do anything with money that is not presented to the community. Our advisory board that we currently have in place, many of them have been through these tragedies in their past, and many of them have responded to these tragedies. There is never any intent to do anything but."

Seigel said they recognize that traditional paths that work for some are barriers for other survivors.

"We're working on sort of trying to identify more that can reach out to the folks who may not be safe talking to law enforcement," said Finegan.

Regarding the 10% for administrative fees, KRDO asked what the CHF would do once it's reached its cost of operations and what it'd do with any surplus, Finegan said there won't be a surplus by any means. When it comes to reaching the cost of operations, Finegan said they're discussing that internally right now.

Coffman noted the CHF has applied to several different entities to try and take care of administrative costs. However, she said there are not a lot of people willing to cover the administrative fees.

"I would love if we didn't have to take an administrative fee. I really would. Nothing would please me more," said Coffman. "We're exploring several different opportunities. And actually, we appreciate the coverage that we're getting from the press because you help us tell our story about this need."

"I hope for this, that someone hears about this and goes, 'gosh, you know, our operation could help to that' or 'we'd like to make a contribution toward those operating costs so that healing fund can give all of the money, pass it on for victim services not only immediately but through the middle long term. So, that's my pitch."

At the end of the press conference, Finegan offered to provide KRDO with copies of the CHF's tax returns from 2020, 2021, and 2022. 13 Investigates is in the process of requesting those records.