The Romance Writers of America (RWA), an organization dedicated to supporting romance writers, is heading to bankruptcy court. This development stems from financial strains caused by declining membership and unmanageable conference commitments. The organization now seeks to restructure its debt and stabilize its future operations. Notably, membership numbers dwindled from 10,000 to around 2,000, significantly impacting the group’s financial health.
Membership in the RWA has suffered due to controversies over diversity and the COVID-19 pandemic, which halted in-person events in 2020 and 2021. The organization owes approximately $3 million to hotels hosting its annual conferences and an additional $74,500 to other creditors. A three-year payment plan is proposed to address these debts. In the past, RWA has faced criticism for its handling of diversity issues, including backlash for ousting a board member who highlighted racial stereotypes in other writers’ works.
Financial Struggles
The RWA’s financial troubles began with hotel bills for its annual conferences. Locked into long-term contracts with Marriott hotels, the organization struggled to renegotiate these commitments as membership declined. The most recent conference hotel demands over $700,000 due to fewer rooms being sold than reserved. The 2024 and 2025 conferences are expected to incur further losses.
RWA is dealing with a $1 million contract termination demand from the Philadelphia Marriott for the 2025 conference. These financial obligations threaten the organization’s continued operation. Despite partial success in renegotiating contracts, the financial burden remains heavy.
Diversity Issues
The organization has faced significant controversy over diversity issues in recent years. In 2019, RWA’s decision to oust a board member who criticized racial stereotypes in romance novels led to backlash. As a result, RWA reconstituted its board, canceled its 2020 awards program, and revamped its annual awards to honor its founder, Vivian Stephens, a Black editor who supported women of color in the romance community.
Despite these efforts, the organization drew further criticism in 2021 when it awarded a novel featuring a protagonist involved in the Wounded Knee Massacre. The award was subsequently rescinded, but the damage to RWA’s reputation persisted. The organization acknowledged losing the trust of its members and the broader romance writing community.
Key Takeaways
- Declining membership from 10,000 to around 2,000.
- Unmanageable financial commitments to hotels for conferences.
- Controversies over diversity have eroded trust within the community.
The RWA’s financial hardship is a stark reminder of the challenges organizations face when unable to adapt to declining membership and growing financial commitments. The proposed bankruptcy and debt restructuring plan aim to stabilize the RWA’s operations. Meanwhile, the organization’s history of controversies over diversity highlights the importance of inclusivity and sensitivity in maintaining member trust. Addressing these ongoing issues will be crucial for RWA’s future success. The romance writing community will watch closely as the organization navigates through these turbulent times.
