Nonprofit discovers 0,000 in funds unavailable after payroll fails to clear.

Collapse of a Philadelphia Nonprofit Leaves Young Filmmakers and Staff in Financial Limbo

Lil’ Filmmakers, a nonprofit organization based in Roxborough, Philadelphia, is in turmoil amid financial mismanagement at the Federation of Neighborhood Centers (FNC), the organization that has managed its grants for nearly a decade. Despite Lil’ Filmmakers having raised approximately 0,000. The city awarded the organization a ,000 anti-violence grant, and a separate ,000 grant was provided by one of Michael Jordan’s charitable organizations. However, as of late August, staff members and summer program participants were not compensated for their work, raising concerns about the financial integrity of FNC.

CEO Janine Spruill, who founded the program in 1999, noted that after calling the FNC for clarification, staff informed her that they could not process payroll due to “a few issues” they were attempting to resolve. Spruill expressed her distress over the matter, saying she was caught off guard by the lack of communication regarding the nonprofit’s financial situation. Other organizations under FNC’s grants reported similar issues, including overdue invoices and payroll problems, which left many unsure of their financial standing.

By November, FNC announced the impending closure of its fiscal sponsorship program, a service vital to Lil’ Filmmakers and other community organizations. The shutdown is attributed to significant financial mismanagement, with new CEO Demir Moore citing a “lapse of management” but denying any fraudulent activity. According to reports, FNC had amassed a deficit by inappropriately allocating funds between different groups, leading to an unsustainable financial position.

Moore was hesitant to provide specific figures regarding the funds FNC currently holds, stating that approximately 50 organizations are under their oversight, some of which may not have active accounts. The logistics of untangling the fiscal sponsorship program will take time, and how FNC managed to operate under such precarious conditions has yet to be fully investigated.

As the situation escalated, community groups, including Lil’ Filmmakers, sought external assistance to bridge financial gaps, culminating in emergency fundraisers. Not only did these groups experience distress from payroll discrepancies, but they also faced growing uncertainty as to whether they would recover the funds owed to them before FNC’s scheduled closure on December 31.

The Philadelphia Office of Public Safety confirmed that Lil’ Filmmakers and other grant recipients would receive assistance in finalizing their accounts with FNC. A spokesperson mentioned that city-issued funds totaling approximately 0,000 for these groups were largely accounted for but were still subject to disputes, potentially prolonging the resolution process.

Compounded by financial complications, some organizations had previously worked with a California-based fundraising platform, Flipcause, which recently faced a cease-and-desist order after accusations of withholding funds from several nonprofits. Reports suggest that FNC organizations could be owed around 0,000 currently withheld by Flipcause, though Lil’ Filmmakers does not appear to be directly affected.

Moving forward, support organizations have stepped in to facilitate transitions for community groups needing new fiscal sponsors, with hopes of positioning them by the end of the first quarter of 2026. Nonetheless, uncertainty remains rife as the situation evolves.

With financial concerns looming overhead, Lil’ Filmmakers has initiated another fundraising campaign, seeking to raise ,000 to maintain essential programming. Spruill is determined to continue her mission of fostering storytelling through film, emphasizing the importance of the narratives that need to be shared despite the bleak financial landscape.