The Charity Commission has opened a compliance case into Manchester Pride after some performers and business owners reported having not been paid.
Manchester Pride took place over the August bank holiday, but two months later, some performers and businesses say requests for payment have been met with silence.
Equity, the performing arts and entertainment trade union, has urged performers waiting for payment to get in touch for support and advice.
According to the union, the 60-day payment period for most performers’ contracts expires at the end of October, meaning Manchester Pride will be in breach of agreed payment periods if performers are not paid by then.
Performers ‘giving up hope’
One of those impacted is RuPaul’s Drag Race UK star Saki Yew, who told BBC Newsbeat the situation had “gone too far” and that “a lot of performers are starting to give up hope of being paid”.
Saki was booked as part of a collective which is owed a “big sum of money” that “put in the hard work with weeks and weeks of rehearsals”.
Chris O’Connor, a sole trader at the event, is taking organisers to a small claims court over £2,050 he is owed, according to Newsbeat.
A supplier who wished to remain anonymous told the BBC they have “no expectation” of receiving £1,000 for signage they provided.
Manchester Pride is not expected to publish its public accounts for 2024 until December, but data for the 2023 financial year shows a total income of £2.7m and total expenditure of £3.1m.
Accounts covering 2023 show a consolidated deficit of £468,000, and by December of that year, the consolidated funds deficit was £356,000.
A note in the accounts says that “a review of the charity’s strategy will be undertaken in 2024 to safeguard the sustainability of Manchester Pride’s financial model”.
Public filings from Companies House for Manchester Pride show five trustees have been terminated from their roles since late August.
Manchester Pride ‘taking legal and financial advice’
Last Thursday, Manchester Pride posted on Instagram from the board of trustees saying it “is currently in the process of determining the best way forward with our legal and financial advisers”.
It said: “We recognise that there has been a period of silence from us, whilst we have taken legal and financial advice.
“We understand the frustration this has caused and the impact this has [had]. Our intention is to ensure that we speak with honesty, clarity and care as we move forward.
“We know that moments like this can raise questions and emotions. We want to ensure that our staff, interns, artists, contractors and suppliers, who are all part of our community, are heard and considered.
“The wellbeing and safety of our staff, who are all a part of the wider community, is our highest priority. We ask that people treat our staff, from the CEO to the interns and volunteers, with kindness and respect.
“We will be reaching out to key stakeholders, partners, and media contacts in due course.”
The statement added that it hopes to provide more information by 22 October.
But performers were disappointed with the statement, with many taking issue in the comments section with the fact that they still do not know when they will be paid.
Manchester Pride has been approached for comment.
Charity Commission ‘engaging with trustees’
The Charity Commission said that in line with its guidance, Manchester Pride has submitted a serious incident report relating to the charity’s finances.
A commission spokesperson said: “We have opened a compliance case to assess concerns raised about Manchester Pride and we are engaging with the trustees to help inform any next regulatory steps.”
The commission added that it has made no findings and cannot comment further at this time.
It said a statutory inquiry has not been opened.