Rainbows has been dedicated to enhancing the lives of children with special needs and their families by bringing together community resources and providing customized services for 37 years.

What happened to Rainbows in 2009? In July 2009, Board members and staff discovered the agency’s financial records were falsified and a significant number of bills were unpaid. The Board took decisive action and filed for Chapter 11 Bankruptcy as a result of approximately $5.2 million in liabilities. Immediate temporary financing was secured and significant downsizing resulted in a restructuring plan that sets Rainbows on a path of continued financial viability. An increase in private contributions is critical to the plan’s success. Rainbows will offer a 100% repayment option to all creditors, or will negotiate for an immediate discounted payment.

What is the status of the restructuring? Approval of Rainbows’ restructuring plan was given by the court on March 24, 2010.

Did any services for children with special needs get reduced during restructuring?
Yes, center-based child care for infants and toddlers with special needs were eliminated due to the extreme cost. Families receiving these services were offered the early intervention portion of their care in either another community child care setting or in their home. Rainbows is currently seeking additional funding to reinstate this care.

Who is leading Rainbows United? Who is President?
Deb Voth is the President of Rainbows. Voth joined the agency in 1993 and has most recently served as Chief Operating Officer overseeing day-to-day operations.

Hale Ritchie, who joined Rainbows on a volunteer basis as Chief Restructuring Officer in 2009, is now serving as Vice Chair of Rainbows’ Board of Directors. Steve Cox is Chairman of the Board.

Who is your current Chief Financial Officer?
The Board of Directors enlisted the services of Kere Noel, CPA as interim Chief Financial Officer during the restructuring period. Mr. Noel has since accepted the position on a permanent basis and reports directly to the Board of Directors.

Have any criminal charges been filed?
To the best of our knowledge, no money was stolen from Rainbows United, Inc. by any employee of the organization, and therefore we are not aware of any criminal charges being filed to date.

Where are services for children being provided now that you sold two facilities?
As in the past, a majority of Rainbows’ services continue to be provided in family homes or other community settings. Rainbows’ Kids’ Point early care and education center (3223 N. Oliver) houses center-based programs for children with and without special needs ages 3-5.

Rainbows’ Kids’ Cove center (2258 N. Lakeway Circle) will house Rainbows’ infant/toddler staff serving Sedgwick County, respite care staff and center-based programs for children with special needs ages 6-21, including before and after school latchkey, inservice, weekend respite, and Camp Woodchuck summer program.

During 2010, Rainbows expects to serve more than 3,000 children, families and providers through our comprehensive programs for ages birth-21.

By how much did the sale of the two buildings reduce Rainbows’ overall debt? How much do you still owe? The sale of Ritchie Family Center (251 S. Whittier) and Family Enrichment Center (340 S. Broadway) paid off Rainbows’ temporary financing package of $1.5 million that sustained the agency during the restructuring period. The balance of Rainbows’ secured debt (tax liabilities), building loan and unsecured debt equals approximately $5.2 million, which will be amortized over several years.

What is Rainbows United Charitable Foundation? Rainbows United Charitable Foundation, Inc. was established in 2003 as a separate 509(a)(3) charitable organization for the purpose of securing the long-term financial stability of Rainbows United, Inc. Originally solely responsible for endowed and planned gifts, RUCF now collects, manages and distributes all private charitable funds supporting Rainbows. An 8-member Board of Directors, led by Chair Grant Stannard, oversees RUCF operations.

Why is the role of Rainbows United Charitable Foundation (RUCF) important moving forward? The foundation collects, manages and distributes charitable dollars intended for operations or endowment for Rainbows United, Inc. The role of RUCF is to provide an extra layer of oversight to ensure charitable dollars are used for their intended purpose.

How many children are served through Rainbows?
During 2010, Rainbows United will impact approximately 3,275 children, families and early childhood providers through our comprehensive programs in Sedgwick and Butler counties. Rainbows United specializes in caring for children with special needs ages birth – 21.

What are the major funding sources for Rainbows? Rainbows United receives funding from many sources, both public and private, including Federal and State education funds (partially through a partnership with USD 259 Wichita Public Schools), United Way of the Plains, Sedgwick County, Kansas Department of Health and Environment, Social and Rehabilitation Services, Medicaid, private insurance, family fees, grants, events, and private donations.

Positive Points as of April 2010