Why is AACCS closing?
The answer is multi-layered. The fundamental reason is that we can no longer afford to keep our doors open because of our outdated business model. Some specific reasons include the following:
- There has been no infusion of ongoing pledges of support since the merger with Logos Seminary. Dedicated funding for a Christian mental health ministry such as AACCS continues to have many obstacles in the Asian American Christian community.
- The advent of CA Assembly Bill 5 (AB5) in Jan. 2020 increased our financial strain by requiring all therapists to become employees rather than independent contractors. The net result has been increased operational costs and decreased earnings for our therapists. This has made it difficult to hire new therapists and made it more evident that AACCS’s business model is unsustainable.
- Changing our business model has always been the agency’s greatest challenge. Without sufficient funding, we have not been able to invest in updating and upgrading our operations. What worked a decade ago no longer works in 2020.
- As a leap of faith, the decision to hire full-time staff to address administrative challenges also increased operating costs. Whereas, the increase in staffing has been effective, there has been no corresponding increase in income.
- The COVID-19 Pandemic has exacerbated AACCS’s financial condition. There has been a significant loss of income due to shutting down all of our offices. Even with the implementation of “Telehealth” online counseling, there remains a drop in revenue due to fewer sessions.
- Lastly, due to the pandemic, the AACCS annual fundraising luncheon was canceled which deepened the deficit.
What led to the decision to cease operations?
The primary proponent of ceasing operations and closing AACCS was the founding pastor, Cory Ishida, who introduced the idea at the New Dawn/AACCS March Board Meeting. Here is his view written in the first person for the FAQ.
“I believe that it was God’s grace that allowed the agency to open our doors and exist over the past 34 years. I now believe it is God’s grace to have us close our doors.
Through all the ups and downs of the past years, I have never felt that we should end the tenure of the agency. However, after assuming the position of interim Chairman of the Board of AACCS, I was able to do a deep dive into the day to day operations of the agency.
I learned that our current Executive Director, Iris Wong, was doing a superb job navigating our agency through a very difficult time. She worked on and completed a number of strategically important projects including a new business model in light of AB5.
As I developed a deeper understanding of what was transpiring, I came to the inevitable conclusion that AACCS could not continue as a viable counseling agency. There was little question in my mind that the ministry was still effective in helping the hurting, but we could not achieve financial viability given all the circumstances.
So after much prayer and consultation, I personally recommended that the agency cease operations and the current Board of New Dawn/AACCS agreed.
Let me add that I have been privileged to work with incredible Board members over the past 34 years. The former Board of AACCS and the current Board of New Dawn/AACCS have been made up of outstanding people who love God and have a heart for the hurting. They have done an incredible job maintaining the agency to this point in time.”
When will AACCS cease operations?
AACCS will cease seeing clients by June 30, 2020. All new clients are being referred elsewhere. The administrative office will close by July 31, 2020.
Is there any way that AACCS could continue?
We would need an immediate infusion of a guaranteed $250,000 for the current year and a guaranteed $150,000 in commitments over the next five years. Neither has happened.
What will happen to our current clients?
Our top priority in ceasing operations is to ensure the well-being of our clients. This is our multi-faceted plan:
- Bring therapy sessions to a conclusion wherever possible
- If clinically appropriate, convert therapy sessions into private practice sessions to allow clients to follow their therapists into private practices
- Refer or transfer clients to therapists outside of AACCS
What will happen to our therapists?
Our second priority while ceasing operations is to care for our staff and therapists. AACCS will be assisting our therapists terminate or transfer clients, store records, start private practices, apply for unemployment and have tail insurance coverage.
What will happen to our staff?
Our Executive Director and Board will assist the staff in searching for employment and benefits.
What about the annual year-end fundraiser and the recent walkathon?
Our regular fundraising events have been extremely helpful in keeping our doors open. However, they have never created a cushion or surplus of funds.
Who or what will take the place of AACCS?
In many respects, AACCS is incredibly unique. AACCS has provided training for new Asian American therapists, affordable counseling for the Asian American community, consultation for pastors, member care for missionaries and affordable counseling for pastors. We are hopeful that God will raise up counselors and entities who will continue the mission of AACCS.
What about getting more churches to support the agency?
This has been an ongoing strategy for years. Churches have been contacted and relationships cultivated, but they have on the whole been reluctant to give on a regular basis.
What about securing grants for the agency?
We have received grant monies in the past. Grants, however, are awarded for things other than operations and are not a reliable source to maintain the agency.
What about seeking loans for the agency, such as the recent CARES Act SBA Loans?
We have researched loans such as the CARES Act SBA Loans. These loans are designed for employee retention and business recovery and not designed to assist businesses that are closing their doors. To pursue these loans in light of our decision to close would be disingenuous and lack integrity.
What about applying for the Los Angeles County WDACS Employer Assistance Grant?
We also investigated this Grant Fund and found that we do not qualify because of the basic criteria of the program, which is to retain workers and remain in business.
Why doesn’t AACCS increase its capacity to see clients who pay through insurance?
We already bill insurance for a number of clients and have attempted to increase the number of insurance panels over the years. After a recent analysis, the net funds the agency received from insurance companies after paying our therapists is insufficient to support the operational costs of the agency.
What happens to the office furnishings?
We will first attempt to return items that were loaned to the agency; then sell the rest for a nominal amount to our therapists who decide to start a private practice; and finally, donate whatever is remaining to another non-profit organization.
What about debts and liabilities?
We plan to have a “Finishing Well” Fundraising Campaign to pay our closing expenses, debts and liabilities. If the fundraising attempt is not successful, then we may have to pursue bankruptcy, which we are attempting to avoid at all costs. The Lord has already provided a large donation to assist us in finishing well, but we will need more funds to complete the ethical and legal responsibilities required for a non-profit counseling agency to close properly.
