IRS 990 Nonprofit Profile

Federation Employment and Guidance Service Inc

In the areas of behavioral health, intellectual and developmental disabilities, housing, home care, employment/workforce, education, youth and family services. fegs also administered complex residential and support programs for the intellectually and developmentally disabled and a comprehensive portfolio of behavioral treatment and residential programs for the mentally ill. at its peak, fegs operated a network of over 350 programs located throughout the metropolitan new york and long island areas. on march 18, 2015 (the "petition date"), fegs filed a voluntary petition for relief under chapter 11 of the bankruptcy code in the united states bankruptcy court for the eastern district of new york (the "court"). during the pendency of its chapter 11 case, fegs operated its business and managed its affairs as a debtor-in-possession. prior to the petition date, fegs announced that it planned to transfer its charitable purpose programs to other not-for-profit service providers. by may 31, 2015, fegs had successfully transferred its charitable purpose programs to other exempt not-for-profit organizations. pursuant to court order, fegs subsequently leased its real estate to the acquiring service providers until a sale of its real estate could be completed and approved by the court. on october 6, 2017, fegs filed with the court its disclosure statement and plan of liquidation (collectively, the "plan"). the plan provides a means by which the remaining assets of the debtor's real estate portfolio and other remaining assets will be liquidated. the plan further provides that the proceeds of such liquidation, together with the proceeds of the prior sales of the debtor's assets, will be distributed under chapter 11 of the bankruptcy code, and sets forth the treatment of all claims against the debtor. the plan proposes the private sale of substantially all of the remaining real estate assets - comprised largely of group homes, cooperative apartments and community residence facilities housing many of its former clients, to the not-for-profit exempt organizations who took over fegs' programs and continue to provide services to fegs' former residential clients. the plan also provides for the private sale of fegs' membership and sponsorship interests in four housing corporations whose properties house physically and developmentally disabled clients (the "housing corporation interests"). these private sales will serve to continue the charitable mission of fegs and to ensure the continued residence and care of its former clients. on february 6, 2018, pursuant to the findings of fact, conclusions of law and order confirming third amended plan of liquidation under chapter 11 of the bankruptcy code of federation employment and guidance service, inc. d/b/a fegs [docket no. 1050] (the "confirmation order"), the court confirmed fegs' plan. pursuant to the confirmation order, the court authorized fegs to consummate the private sales of its remaining assets to the exempt organization service providers who took over the operation of the debtor's programs. the plan became effective march 1, 2018 [docket no. 1056]. pursuant to the plan, a creditor trust was also created for the benefit of pursuing certain litigation claims for the benefit of unsecured creditors. the creditor trust was funded by fegs with cash and the assignment of litigation claims consisting of preference claims, claims held by fegs against two of its former officers and claims held by fegs against its former auditors. pursuant to the plan, judith pincus was appointed plan administrator and robert n. michaelson was appointed the trustee for the creditor trust. in addition to and separate from the creditor trust, the plan also required that the plan administrator establish a disputed claims reserve, the fegs disputed claims reserve dof, to provide a vehicle for the payment of disputed general unsecured claims if and when they became allowed claims. under the plan, the fegs disputed claims reserve dof received the disputed general unsecured creditors' pro rata share of the creditor trust interests on the date that the taxpayer transferred the creditor trust assets (which consisted of cash and litigation claims) to the creditor trust. because as of the effective date no determination had been made as to whether a claim filed as a general unsecured claim was allowed, all of the creditor trust interests were transferred to the fegs disputed claims reserve dof. as of june 30, 2021, the creditor trust had completed the monetization of its assets (which consisted primarily of the litigation claims) and had transferred all of its assets (after payment of certain, but not all, allowable expenses) to the fegs disputed claims reserve dof. in march, 2022, the fegs disputed claims reserve dof made its first distribution to holders of allowed general unsecured claims. upon completion of the fixing of general unsecured claims and a determination as to the amount, if any, available for distribution to creditors holding allowed unsecured claims, a second and final distribution may occur. during the current tax year and pursuant to court orders including the confirmation order, the debtor continued the process of winding-up its operations and implementation of the plan as approved by the court. at the end of the current tax year (june 30, 2024), the debtor continued to own interests in three housing corporations whose properties house physically and developmentally disabled clients. the debtor continued to market for sale its interests in the three remaining housing corporations. fegs' chapter 11 case number is 15-71074 (reg). fegs' disclosure statement, plan, confirmation order, creditor trust agreement, and the other pleadings filed in fegs' chapter 11 case are available for review at https://ecf.Nyeb.Uscourts.Gov.

Filing year

2023

Total revenue

$17K

Total expenses

$996K

Program expenses

$641K

Administration

$355K

Fundraising

$0

Program share of expenses

64%

EIN

131624000

Location

New York, NY

FEGS.ORG