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Sunday, February 1, 2015

Federation Employment & Guidance Service (FEGS) seriously considering bankruptcy


Federation Employment & Guidance Service seriously considering bankruptcy
EXCLUSIVE: The bankruptcy plan comes weeks after the 80-year old charity laid off dozens of employees in its struggle to stay solvent. It remains unclear what will happen to the city agencies that rely on FEGS to help disabled clients land jobs and attend training programs.
BY REUVEN BLAU  NEW YORK DAILY NEWS Tuesday, January 13, 2015, 6:37 PM

A major city nonprofit is seriously considering filing for bankruptcy, weeks after discovering that it is close to $20 million in debt, sources said.

The Federation for Employment and Guidance Services (FEGS) told some of its workers Tuesday that it would likely be left with no alternative to that extreme measure.

It remains unclear what will happen to the city agencies that rely on FEGS to help disabled clients land jobs and attend training programs.

“Some may be gone and some may be transferred,” a source familiar with the charity said.

The bankruptcy plan comes weeks after the 80-year old charity laid off dozens of employees in its struggle to stay solvent.

FEGS spokeswoman Julie Farber said the agency was still reviewing its options.

“We have narrowed the potential pathways we may undertake, and a final decision has not yet been made,” she said.

FEGS assists up to 12,000 disabled people each day and has a yearly budget of about $250 million, funded largely by city and state grants.

The head of the organization has changed three times in the past few months.

rblau@nydailynews.com





I’m just wondering how you just “discover” that you’re $20 million in debt... what kept them from noticing after the first million? City and state government is willing to blow millions on a crap organization like FEGS, but make it really difficult for people on public assistance - especially the disabled - to exist decently. Wouldn’t it be nice to see more of the money spent on screwed up non-profits that waste money and then go bankrupt be spent directly and more effectively on helping the poor and disabled? Is there any accountability?

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