A trial date was set for May 11, 2026 to resolve matters between Mazzoni Center — a local LGBTQ+ health center — and a funding company, which is seeking almost $500,000 from the organization.
It’s been about six months since concerns about Mazzoni Center’s financial state made headlines when the organization was named in two lawsuits by funding companies, LCF Group and Fundkite, who sought a collective $1.3 million. On April 8, a request was made by LCF Group for a judge to decide the case in their favor without a full trial. In order for the request to be granted, all parties must agree on the facts of the case or a judge must rule to dismiss Mazzoni’s defenses.
But Mazzoni isn’t giving up without a fight. If LCF’s request is not granted, a trial will proceed as planned and depositions are scheduled to follow in the next steps.
The saga began when LCF Group entered into a “merchant cash advance” agreement with Mazzoni in Sept 2024 after Rachelle Tritinger, Mazzoni’s former CFO, signed contracts with the company and an additional funder, Fundkite, in order to cover payroll. But Mazzoni claims Tritinger did not have the authority to enter into these agreements — which offered Mazzoni immediate cash in exchange for future profits at alarming interest rates.
Before the lawsuit, Mazzoni attempted to immediately repay what had been borrowed but was not permitted by the funding companies. Now, LCF is seeking $367,535.00 in damages for breach of contract, $5,035.00 for default and insufficient funds fees, and $120,821.25 for attorney fees. The organization also previously stated in court documents that repayment of the cash advances with legal fees and interest could cause bankruptcy.
But bankruptcy doesn’t automatically mean Mazzoni’s doors would shutter. It could allow for a financial reorganization while daily operations continue. And throughout these hardships, Mazzoni is continuing to serve the LGBTQ+ community.
A recent audit shows Mazzoni offers a glimpse at impact in tangible numbers. In 2023, the center distributed over 6000 HIV tests, provided services to almost 1700 people living with HIV, offered legal support to almost 300 people, and provided training on LGBTQ+ specific health topics to more than 6400 providers.
Mazzoni’s financial struggles cannot be completely attributed to their own missteps. During Philadelphia’s first LGBTQ+ equity hearing in October 2024, Sultan Shakir — Mazzoni’s previous president and executive officer — explained that the organization had advanced $600,000 in care and struggled to pay employees due to difficulties receiving reimbursements from the city. He said the city’s failure to reimburse the center in a timely manner has resulted in an ongoing cash-flow issue.
These issues are so widespread and affect so many of Philadelphia’s nonprofits that a Non-Profit Provider Task Force was established to improve the way the city does business with these vendors. A report relaying findings and making recommendations noted that nonprofits lose money and underinvest in staff due to issues they encounter while working with the city to provide essential services.
It also underlines that costs accrued by borrowing money — which Tritinger attempted through LCF and Fundkite — cannot be recouped when the city finally pays up.
Over these past few months, Mazzoni has taken various measures to ensure they’re moving in a better direction. The organization has identified and obtained new funding partnerships — including a five-year $1.8 million grant from the Pew Charitable Trust — and has hired a new CFO who comes with decades of experience working with Federally-Qualified Health Center (FQHC) Look-Alikes, a designation that Mazzoni recently achieved which offers various cost-saving benefits as a service provider.
Simon J. Trowell — Mazzoni Center’s interim executive director — told PGN that while he understands the ongoing litigation has an impact on the organization, including on morale, he’s a “forward-looking” leader who wants to give people a reason to believe in a healthy future for Mazzoni — including financial growth and sustainability.
Mazzoni’s leadership and staff are beginning to finalize a path toward that future as they fine-tune a three-year strategic plan. Trowell is focused on four main pillars — hiring and supporting staff, promoting health equity, expanding services, and ensuring financial stability.
“We will manage,” he underlined. “We will lead our way through this and whatever problems have occurred in the past, they’re not insurmountable. We just have to make sure that we set the right strategy. And I believe we’re absolutely doing that.”