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A former Carmichael Outreach board member is calling for the rest of its directors to resign, saying the board failed to prevent a financial crisis that could threaten the Regina organization’s future.
Mirtha Rivera resigned last week after spending more than 10 years with Carmichael Outreach in different roles, including as a member of its board of directors.
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Rivera said she stepped down to accept responsibility for decisions that left Carmichael without a sufficient long-term financial plan. She warned the organization could face the possibility of closing by September if its financial position does not improve.
The remaining board members dispute the suggestion that Carmichael faces an immediate closure, saying recent community support means its doors will remain open and services will continue without interruption “anytime in the immediate future.”
Rivera said her decision was not an attack on Carmichael or the services it provides to people facing homelessness, poverty and food insecurity.
“My aim is not to ask for anything to close Carmichael,” Rivera said. “It’s a vital service that we can’t lose.”
Instead, Rivera said her resignation was an act of accountability for what she believes was the board’s failure to act soon enough.
“We failed the staff, we failed the people that we serve, we failed the community,” she said.
“As a board, we should have seen this happening, and we should have taken the measures not to get the organization to this position.”
Rivera said board members knew Carmichael was facing financial challenges, but did not give the situation enough attention or develop an adequate response.
“We saw it coming and we didn’t do anything,” she said. “It’s sort of like, ‘OK, it will resolve.’ No, it doesn’t. Numbers don’t lie. Numbers don’t change.”
Rivera would not provide specific financial figures, saying she was not at liberty to discuss the organization’s internal numbers after leaving the board.
However, she said Carmichael had only enough money to cover staff wages for a matter of weeks and did not have a complete annual budget to pay employees, benefits, building costs and programming expenses.
Asked how long the organization could remain afloat under its current approach, Rivera said, “Probably September.”
Rivera said the board discussed Carmichael’s financial position before her resignation, but she was not satisfied with the solutions being proposed.
“I asked, ‘What are we going to do?’” she said. “What they mentioned that we need to do was not satisfying for anybody.”
She said the board’s other members should also step down to make room for people with experience in finance, programming and community service.
“I think that the honourable thing to do is to resign, the rest of the board, because we didn’t do the job,” Rivera said.
The Board of Directors of Carmichael Outreach said in a written statement that it remains united and focused on the people who use the organization’s services.
The board acknowledged Carmichael has faced “significant financial pressures” as demand for services increased while charitable giving declined.
It said directors have been working with Carmichael’s leadership, employees, volunteers, donors and community partners to strengthen the organization’s finances.
“The board took action to address these challenges, and thanks to the extraordinary response from our community, we can confirm that our doors will remain open and services will continue without interruption anytime in the immediate future,” the statement said.
The board did not provide financial figures or say how long the money raised through its recent appeal would sustain operations.
It thanked Rivera for her service while acknowledging the two sides disagree about how the organization has been governed.
“While we may have different perspectives on governance matters, we share the same belief that Carmichael Outreach is an essential organization in our community,” the board said.
The board said it remains committed to responsible financial management, supporting employees and maintaining Carmichael as a trusted community resource.
It also invited people with relevant skills and an interest in effective governance to express interest in joining the board.
“Strong organizations benefit from diverse voices, perspectives and experience,” the statement said.
Rivera said she hopes fundraising and community donations will provide enough money to keep Carmichael operating, but argued short-term appeals do not answer questions about its future.
“I really hope that … it will happen,” she said. “But then, long term, what? What are we doing? That’s what I worry about.”
Rivera said Carmichael’s services are increasingly important as more people struggle to find housing, food and other necessities.
She said losing the organization would leave thousands of people with fewer places to turn.
“Where are they going to go?” Rivera said. “I wish I had the answer, but they’re going to be left on their own. What more can they take, really? What more can they take?”
The board said Carmichael’s employees and volunteers have continued providing services throughout its financial challenges and praised their “compassion, professionalism and unwavering commitment.”
“Our focus has been and will always remain on the people we serve,” the board said.
“Together with our staff, volunteers, donors, partners and the wider community, we are building a stronger and more sustainable future for Carmichael Outreach.”
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