Trans-affirming non-profit in engulfed in financial scandal

A trans-affirming non-profit in Palm Springs is engulfed in scandal following alleged mishandling of funds the city and a grant made by the California Department of Public Health (CDPH).

Palm Springs government officials say the non-profit Queer Works, which describes itself as “dedicated to providing free mental health services to TGI+ individuals,” misused $153,846 from the CDPH grant and other funds totaling over $700,000 intended to advance gender-affirming care and trans mental health in the region. A pilot basic income program also fell victim to misallocation of money. 

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While Queer Works’ tax records for 2023 have not yet been filed, previous records show executive compensation ballooned after the group received funding from Palm Springs, the Desert Sun reports.

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Out of $723,316 in revenue for the nonprofit in 2022, a whopping $217,543 was spent on executive compensation, a violation of terms set with the city when they approved funding. An additional $266,411 was spent on salaries and wages to undisclosed recipients.

Jacob Rostovsky, director of Queer Works, earned $191,000 in 2022, more than 10 times the $16,485 he earned in 2021, before the city had allocated its funding.

Another non-profit that took over administration of the city and state funding earlier this year found only $30,000 of the city’s funds remained.

Participants in the basic income program reported problems receiving payments and poor communication from Queer Works throughout 2023. Officials in Palm Springs informed Queer Works in March they would be performing an audit of the program’s finances.

Trans City Councilmember Lisa Middleton said she met with the Palm Springs city manager and finance manager in December about her concerns. An audit plan was drawn up shortly after that, she said.

In July, Rostovsky said Queer Works moved to “virtual presence” but was still operating and said all of the CDPH grant funds were accounted for. His latest communication with the Desert Sun included a request to a reporter to not contact him again.

Despite the investigation, Queer Works continued to receive the California grant funding at about $38,000 per fiscal quarter. The grant would have totaled $500,000 had it been dispersed to completion in 2026. Queer Works asked the state to stop payments shortly before the Palm Springs audit became public.

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