Rainbow Health, a Minneapolis-based nonprofit that abruptly halted operations in July, has told the state Attorney General’s Office that it intends to dissolve, with a $334,000 hole in its finances.
Rainbow Health, which provided services to LGBTQ community, dissolving with $900K in liabilities
The nonprofit, which shut down operations in July, filed its dissolution papers with the Attorney General’s Office.
The Minnesota Star Tribune
August 20, 2024 at 1:37PM
In a notice filed late Monday, Rainbow Health listed assets of just over $566,000 and debts and liabilities of about $900,000.
The nonprofit was a health and social service agency focused on helping people with HIV as well as members of the state’s LGBTQ community. Former union workers have been pushing for Rainbow Health to provide a final month’s worth of pay plus compensation for unused PTO.
Leaders of the nonprofit did not immediately respond to questions from the Minnesota Star Tribune about the filing.
Dissolving nonprofits must wait 45 days after filing notice before they can dissolve, according to a spokesman for Minnesota Attorney General Keith Ellison. The spokesman said this waiting period can be extended by the attorney general.
Besides $347,000 in accounts receivable, Rainbow Health’s assets include $219,000 in bank/investment fund accounts.
The largest debt listed was about $400,000 for “30-day notice to unionized employees,” the filing states, plus another $139,000 in accounts payable. The overall accounting for liabilities “is still in flux as staff are working to close down the organization,” according to the notice.
Rainbow Health estimates dissolution costs of about $195,000, including about $80,000 for preparation of final returns and audits. The agency said the estimate for overall dissolution costs “is a moving target.”
Foundations and social service agencies scrambled over the past month to minimize harm to former clients at Rainbow Health. People relied on the nonprofit group for federally funded HIV support services, medication access and specialized mental and chemical health services.
An earlier version of this story wrongly stated that dissolving nonprofits must wait 45 days after filing notice before paying any creditors. The Minnesota Attorney General’s Office has clarified that this waiting period only applies to the act of dissolution, not payments to creditors.
The InPen app paves the way for the launch of the company’s “Smart MDI” system combining a smart insulin pen that tracks doses and a monitor that makes real-time glucose readings for people who make multiple daily injections.
