A longstanding Utah nonprofit, Advantage Services, has furloughed almost all of its staff and is days away from a complete shutdown if it cannot secure emergency funding. The organization, which employs over 100 people experiencing homelessness and other challenges, needs approximately $750,000 by November 1 to cover payroll through January 1, according to CEO Rob Ferris.
On October 12, Advantage Services furloughed 110 of its 125 employees for a three-week period in a final effort to keep the company operational, Ferris reported. Currently, a "skeleton crew" of about 15 people is managing the organization's remaining functions. Ferris underscored the dire situation, stating the nonprofit is facing collapse "unless somebody jumps in and saves us."
The potential closure of Advantage Services threatens the jobs of a vulnerable population and could severely disrupt essential community services across Utah. Ferris highlighted that the nonprofit is the "largest employer" in the state for individuals who are homeless, transitioning from jail or prison, living with disabilities, or are refugees. Since its establishment in 1992, Advantage Services has offered "supportive employment," providing job coaching, mentoring, and other resources to help employees build stable lives.
The work performed by Advantage Services employees is crucial, often involving tasks such as picking up garbage, cleaning homeless encampments, power washing biohazards from streets, and transporting individuals to and from homeless shelters.
Financial difficulties have plagued the nonprofit for some time. Utah News Dispatch reported in August that Advantage Services had been struggling due to unexpected cost increases, higher insurance premiums, and reduced contracts. A significant blow came when Salt Lake City's Urban Services Division cut its contract with Advantage Services in half, from roughly $2 million to less than $1 million.
The recent furloughs have already affected services for several clients. Ferris had previously informed the nonprofit's more than a dozen customers about the impending changes. All services for Salt Lake City, apart from emergency biohazard cleanup, have ceased. Shuttle services for Shelter the Homeless, which operates several homeless resource centers in Salt Lake County, paused from October 12 to October 17. Other landscaping, grounds cleanup, and janitorial services were scheduled to stop until November 1. However, Advantage Services' highway cleanup contract with the Utah Department of Transportation and services for other specific organizations are continuing.
The situation has garnered attention from the Utah Homeless Services Board, the body responsible for overseeing the state’s homeless system and distributing state funding. During its October 6 meeting, board chair Randy Shumway raised concerns, inquiring about potential assistance from the board or the state Office of Homeless Services. Shumway acknowledged Advantage Services for its significant role in helping individuals "reskill" and "develop a job history post recovery." He warned that the loss of the nonprofit would create a "ripple effect" throughout the homeless system, projecting considerable economic and social costs.
State Homeless Coordinator Tyler Clancy informed the board that his office was prepared to "engage" and "make it a priority." Salt Lake City Mayor Erin Mendenhall, also a member of the Homeless Services Board, recognized the importance of Advantage Services but questioned whether the board should extend its aid to other struggling organizations. Mendenhall also urged Clancy to investigate the possibility of utilizing emergency funding for critical "code blue" shelter transportation needs during the winter, emphasizing the severe impact on the winter shelter system if Advantage Services' transport capabilities are lost.
Josh Romney, board chair of Shelter the Homeless, expressed "very nervous" concern over the potential shutdown. He pointed out Advantage Services' vital role in providing transportation to and from shelters, noting that the nonprofit owns the necessary vans, which would be difficult to replace.
Ferris has been actively pursuing solutions, including expanding existing contracts or merging with another nonprofit, with the primary goal of preserving jobs for those who rely on them. He conveyed his deep concern about the lack of alternatives for these individuals if Advantage Services ceases operations. Ferris stated he is open to any arrangement, such as a loan or a "bailout," provided it secures the necessary funding to keep the jobs intact.
While talks are ongoing to find a resolution, no firm solutions have emerged. The Utah Homeless Services Board is not scheduled to reconvene until November 12, which is after the November 1 deadline for Advantage Services. Ferris confirmed discussions with Clancy earlier in October but noted no solid plans have materialized.
