Outfest film fest postpones gala amid financial issues, staff shake-up

The Los Angeles-based Outfest LGBTQ+ film festival has postponed its annual Legacy Awards gala and paused its programming amid staff layoffs and financial issues.

Last week, the nonprofit organization’s board of directors confirmed in a statement to The Hollywood Reporter that it would be scaling back its operations “for the next several months,” including postponing its annual gala fundraiser, which had been scheduled for October 22.

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“Like other nonprofit organizations, Outfest has been severely impacted by the financial climate of the media and entertainment industry,” the board wrote, adding that it would also be initiating “leaves for the majority of our staff, while we humbly focus on creating a financial model that prioritizes programming that serves our community, a supportive environment for our staff, and ultimately protects the organization.”

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In late September, THR reported that Outfest had laid off five members of its 12-person staff days after staffers informed the board of their intention to unionize. In a statement, Outfest’s board denied that union efforts had anything to do with the layoffs and claimed that staffers had been informed of the nonprofit’s plan to reduce staff before the board was informed of their intention to unionize. “Outfest is decidedly pro-union,” the September statement read. “The work our organization accomplishes wouldn’t be possible without Hollywood unions.”

In its statement last week, the board said that it “proudly supports the staff’s right to unionize and has provided the staff with a letter recognizing their union.”

At the same time, executive director Damien Navarro announced that he would be taking an “unanticipated” minimum 45-day leave of absence beginning September 27, leaving board member Zackery Alexzander Stephens as Outfest’s acting executive director.

While the organization’s board cited “the financial climate of the media and entertainment industry” as the reason for its recent cuts, on Sunday in a since-deleted Facebook post, former Outfest co-president Alan Koenigsberg shared screenshots apparently of a fundraising message from Stephens and the board that suggested there may be more to the story.

“Outfest is in trouble and we need your help,” the message read. “Recently, the Board of Directors was forced to take over day to day operation of the organization and we discovered huge amounts of undisclosed debt that had been hidden from the Board. This forced the Board to enact a series of extreme measures in an attempt to save the organization.”

According to the fundraising message, “Outfest is in serious financial jeopardy and urgently needs to raise $750,000.”

In his post accompanying the screenshots, Koenigsberg alleged that the “current executive committee had destroyed” Outfest and claimed that the fundraising message “demonstrates how they lie.”

“Ask them, aren’t the books audited each year? Yes,” Koenigsberg wrote, adding that he had resigned from the board in protest. “#shame on #outfest executive committee for destroying an organization that helps so many. There is nothing but a ‘few’ peoples greed [sic].”

LGBTQ Nation reached out to both Koenigsberg and Outfest for comment. A representative from Outfest said that they had received our questions, but had not responded as of this afternoon. Koenigsberg did not respond.

Update: Outfest board co-president Nii-Quartelai Quartey responded to LGBTQ Nation‘s request for comment Monday evening with the following statement: “Outfest is in a difficult financial position and the Board of Directors is working on a fundraising and turnaround plan. More details will be released by Board Leadership in the coming weeks. We humbly ask for your patience and support.”