Rainbow Health, a nonprofit based in Minneapolis, announced its intention to dissolve after suspending operations in July, according to a notice filed with the Minnesota Attorney General’s Office. The organization, which served people with HIV and the LGBTQ community, faces a financial shortfall of $334,000.
In its Monday filing, Rainbow Health reported assets totaling just over $566,000 while debts and liabilities exceed $900,000.
Former union employees are advocating for the nonprofit to compensate them for their last month of work, as well as for any unused paid time off (PTO). However, leadership at Rainbow Health has yet to respond to inquiries from the Minnesota Star Tribune regarding these issues.
Under Minnesota law, nonprofits must wait at least 45 days after filing for dissolution before paying any creditors, according to a spokesperson for Attorney General Keith Ellison. This waiting period can be extended by the attorney general if necessary.
Rainbow Health’s assets include $347,000 in accounts receivable and $219,000 in bank and investment accounts. Meanwhile, the largest debt listed is $400,000, which is earmarked for severance to unionized employees. An additional $139,000 is owed in accounts payable. The organization’s overall liabilities are still being finalized, as staff work to close operations.
The nonprofit anticipates that dissolving the organization will cost approximately $195,000, including $80,000 for final tax returns and audits. However, these figures are subject to change as the process continues.
In the wake of Rainbow Health’s closure, foundations and social service agencies have been working to mitigate the impact on former clients. The organization provided critical services such as HIV support, medication access, and specialized mental and chemical health care through federal funding.
