Board members of Sisters of the Road are trying to pick up the pieces and plot a new path forward after a long-awaited building purchase fell through.Â
The nonprofit social justice organization had been fundraising to finalize the purchase of the building where former restaurant House of Louie used to serve up dim sum in Old Town Chinatown. Sisters of the Road had planned to move its headquarters and operations to the site, and reopen its cafe. The former Sisters of the Road cafe was a well-known spot where anyone could pay $1.25 for a nourishing meal, or barter for a meal by helping out with tasks around the cafe. Â
Despite steady fundraising, the organization realized a few months ago they wouldn’t have enough money to secure the building.
It was news Matt Chorpenning never wanted to deliver.
“It started to become clear to us at the tail end of summer here, that we were just not meeting the fundraising goals,” Chorpenning, vice president of the board of directors for Sisters of the Road, said. “The philanthropic climate right now is just challenging.”
Chorpenning said the board is “actively looking at other options” for a new space and reassessing the nonprofit’s needs.
The former House of Louie building was seller-financed, meaning Sisters of the Road didn’t take out a traditional loan for the purchase. The organization also got roughly $500,000 in Housing and Urban Development (HUD) grant money to help with the purchase. Chorpenning said the organization will still be able to use the HUD funding toward securing a new property.
In July 2023, the nonprofit proudly announced its plans to take over and renovate the historic building.Â
“Over the next two years, Sisters will raise funds and renovate the House of Louie, bringing it up to code and customizing the space while preserving the history of the House of Louie and Chinatown,” a news release stated. The property purchase and renovations were estimated to cost $5 million.
Tax filings show Sisters of the Road took in $1.09 million in contributions in 2022–a decrease from the $1.5 million it received the year prior–but was over budget by about $26,000.
As the sale was falling through, Sisters of the Road’s executive director, Kat Mahoney, announced her resignation. She will leave sometime this month. Mahoney’s exit is unrelated to the property issue, according to Chorpenning. “There’s no scandal.”
“I think it’s fair to say that the climate toward unhoused Portlanders has turned really hostile,” the board VP told the Mercury, noting Mahoney is leaving on her own volition. “Kat was in that role for two years and carried out that work in a really challenging time. We are extremely grateful for her service to the organization.”
In a statement shared with the Mercury, Mahoney elaborated on her time there.
"I stepped into the role of executive director in 2022 when Sisters was in crisis,” Mahoney stated. “I worked hard to stabilize the organization and set it up for success. We grew our systemic change program and raised our voice with the people we serve to stand up for dignity for all people. After a challenging and rewarding two years, I am now turning the reins back to the board. I wish them the best of luck."
The executive director’s departure reflects a broader issue in the nonprofit sector. A 2024 State of Nonprofits report released earlier this year by the Center for Effective Philanthropy notes that among the nearly 240 nonprofit leaders surveyed, 95 percent “expressed some level of concern about burnout.”
“Burnout – for both nonprofit staff and leadership – remains a top concern for most nonprofit leaders, with half of nonprofit leaders feeling more concerned about their own burnout than this time last year,” the report notes.
Chorpenning said he and the rest of the board plan to get an interim executive director installed. “The board has a fair amount of work to do,” Chorpenning said, “but we’re actively thinking about how to do things quickly but not carelessly.”