Benefits Data Trust board and leadership address company closure in note to staff
The company said in the note that it harbors no "ill will" to employees who signed an open letter calling for transparency about the abrupt closure.
Benefits Data Trust employees will be paid to keep working through Aug. 24, the date the Philadelphia nonprofit is scheduled to shut down abruptly after 60 days notice, according to a Tuesday note from leadership to staff.
Leadership said it is working to find a new home for the organization’s programs, which help people access government benefits under contracts with states and health insurers. A fundraising darling among human services nonprofits, BDT scored a $20 million no-strings-attached grant from MacKenzie Scott in 2022.
Now its more than 270 workers will lose their jobs by the end of August, according to a notice the company sent to the Pennsylvania Department of Labor and Industry.
Leaders also said an all-staff meeting was rescheduled from this week to next week.
“The Board and executive team anticipate having more definitive information to share with you about how we got here and where BDT is headed next,” the note said.
BDT did not respond to a request for comment in time for publication.
The organization’s board stunned its employees last month when it voted unanimously to wind down operations this summer. The announcement came just six months after leaders said in a board presentation that BDT was expected to break even this year with $32 million in revenue.
BDT did not offer explanation for what led to the decision, which was described as the result of a “perfect storm of circumstances.”
This week’s staff note, signed by BDT’s board and executive leadership, did not discuss the decision to close. It offered some information about the upcoming steps as the nonprofit shuts down.
» READ MORE: Benefits Data Trust is leaving employees and supporters in the dark over its abrupt closure
BDT said it is trying to help employees find new work, and providing resources such as resume reviews, job fairs, and interview coaching.
“We are also working with several recruiting and employment search firms to determine what support they can provide in assisting employees with their job search,” the note said.
BDT has funds to cover payroll for the wind-down period, so all employees should expect to be paid, unless a worker decides to leave earlier or is fired for cause, the note said. Employees are expected to complete their duties until the nonprofit’s last day.
Calls for transparency
How the organization went from its renowned status to a 60-day closure timeline is still a mystery to employees and supporters.
When BDT received the $20 million grant in 2022, former CEO Trooper Sanders, who was ousted last month, said it would use that money to “make the challenge of benefits access a thing of the past over the next decade.”
On Monday, a group of unidentified employees describing themselves as “concerned BDT staff” sent a memo to management demanding that the nonprofit establish an employee advisory board to help decide the future of BDT’s programs. The memo calls on the organization to amend any confidentiality agreement that precludes it from sharing information with staff.
“Our expertise is necessary to continue the legacy of Benefits Data Trust,” the memo said.
» READ MORE: Nearly 80 current and former Benefits Data Trust employees demand answers on nonprofit’s end
Nearly 80 current and former BDT employees had signed an open letter last week demanding answers from the nonprofit’s leaders. The letter noted that the closure will have “profound and far-reaching consequences for the vulnerable populations we serve.”
“We are calling on you to provide immediate transparency,” the letter said, noting that the organization helped more than 120,000 people nationally access government benefits in 2023.
BDT worked around the country, often under contract with state agencies and health insurers. The organization recently secured a $2.75 million, two-year project in Dallas. It had extensive relationships with Philadelphia and state agencies, such as the Department of Human Services and the Department of Aging, generating thousands of applications annually.