California AIDS Ride Management Dispute Leads to Lawsuit, Competing Event

The California AIDS ride, an event in which 11,000 cyclists have raised $40 million since 1994, is being abandoned by the non-profit agencies it benefits. They say it's unacceptable that they get only 50 cents of every dollar raised. Fund-raising expenses generally should not exceed 35 cents per dollar, according to the Better Business Bureau's Wise Giving Alliance.

Cyclists from all over the country have joined the annual ride from San Francisco to Los Angeles, a grueling, one-week, 575-mile trek down Highway 1. But the San Francisco AIDS Foundation and the Los Angeles Gay and Lesbian Center say Pallotta Teamworks, the ride's organizer for the past eight years, has mismanaged the event and increased its overhead so much that they're better off running it themselves. So next summer, they're planning their own competing six-day fundraising ride, dubbed AIDS/LifeCycle, along the same route, two weeks before the traditional AIDS Ride. In response, Pallotta Teamworks is suing the non-profits and has found a new charity for the AIDS ride.

The California AIDS Ride provides about a quarter of the San Francisco AIDS Foundation's $24 million annual operating budget, according to spokesperson Gustavo Suarez. "This year they raised more money than ever before, and we got back a lower percentage," he said. In 2000, the foundation received 65 cents of every dollar, according to the Better Business Bureau's Wise Giving Alliance.

"We've raised over $40 million in California since 1994 for people living with HIV and AIDS," said Pallotta spokesperson Norm Bowling. "Now the prospect of two competing events is just going to divide the community . . . and will affect everyone ultimately by having less funds raised." Bowling acknowledged that Pallotta ran 8-9 percent over budget overall this year, but he said the AIDS Ride has a "great track record" and that the charities are overstepping their bounds.

Back to other CDC news for December 19, 2001

Previous Updates