Nearly 80 current and former Benefits Data Trust employees demand answers on nonprofit’s end

Current and former BDT employees published the letter a week after the board abruptly announced that the nonprofit would wind down operations in August.

Benefits Data Trust appears on the directory in the lobby at 1500 Market St. in Philadelphia.Read moreElizabeth Robertson / Staff Photographer

by Harold Brubaker

Published July 2, 2024, 10:04 p.m. ET

Nearly 80 current and former Benefits Data Trust employees published an open letter online Tuesday demanding an explanation for the Philadelphia nonprofit’s abrupt announcement last week that it would close in two months.

The letter noted that the organization helped more than 120,000 people nationally access government benefits in 2023 and was on track to have a similar impact this year.

“We need to ensure BDT’s legacy is secure and that appropriate responsibility and care are taken to serve all who seek public benefits,” the letter said.

BDT was a fundraising darling in the world of human services nonprofits, scoring a $20 million no-strings-attached grant from MacKenzie Scott in 2022. Former CEO Trooper Sanders, who was ousted last month, said at the time that BDT would use that money to “make the challenge of benefits access a thing of the past over the next decade.”

Now, current and former employees are worried about theend of their own benefits when BDT closes.

BDT’s board offered no explanation for its unanimous decision to wind down over the next two months, beyond saying that “a perfect storm of circumstances” led to the decision at the organization, which had $12 million in unrestricted reserves at the end of last year and expected $32 million in revenue this year.

In their letter, current and former employees asked for a public comprehensive response by next Wednesday on how the organization got into such dire straits and what plans there are to pass BDT’s services on to other agencies. It recommended that BDT use proceeds from asset sales to aid employees who will lose their jobs when BDT closes in August.

“The closure of BDT has profound and far-reaching consequences for the vulnerable populations we serve, the dedicated staff who have worked tirelessly to fulfill our mission, and the many partners, government agencies, hospitals, schools, and nonprofits that relied on BDT as a lifeline for their communities. We are calling on you to provide immediate transparency,” the letter said.