Summarising the video too - Nanowrimo had been operating in the red since 2018, with a brief break in 2020-21 thanks to COVID loans. Nanowrimo tried to deal with this by boosting their merch and sponsorship income in 2023, as donations had dramatically fallen.
By October 2023, they were nearly out of money and focused on trying to organise events to deal with that. The board received the child endangerment accusations in November 2023, after the initial response in May, and launched an immediate investigation. This complaint involved spaces outside of the official forums.
They received more concerns about the Young Writers' Programme, both current and prior ones which had been dismissed. The lack of background checks for staff/volunteers, the lack of state-mandated child safety training, and lack of legal info on volunteers led to the drastic changes that have been discussed a lot here. Kilby points specifically to the lack of info they were able to supply about the moderator involved in the original complaint as a massive issue, as well as their existence as a youth-facing organisation, all meant that child safety was their top priority.
December 2023, they implemented background checks, then ended all-ages spaces and created new safety features for young writers, along with requiring educator verification.
The inconsistency of volunteer moderators in their decisions led to the forums being shut down, and how Nanowrimo had previously encouraged the existence of spaces outside the official forums (Discord, Facebook, etc.) had caused them to receive complaints about behaviour that took place outside of forums. They realised that Nanowrimo was dealing with this very badly, hence the actions the Board took.
She includes a snarky comment about how people considered themselves experts for how long they had been involved with Nanowrimo (she titles them the "you're ruining Nanowrimo camp"), but also says others appreciated the changes and a third group were horrified by the revelations and wanted the changes too. Personal opinion - this section is somewhat unprofessional in how she discusses the first group.
Kilby also says she realised that participation had been declining since 2018, which was a lot worse than the board had realised, and 2023 fundraising was $245k lower than expected. They lost nearly $200k in sponsorship income between March 2023 and March 2024 (roughly $125k by then), and merch income were a fraction of its prior levels.
Nanowrimo has to shut down, given its dire financial straits, although they're trying to keep the sites online for as long as they can - but they can't commit to moderation, tech support, etc. Kilby points out that she's been unpaid since May 2023, as have many others in recent months. They were initially in talks with merging with another writing organisation, but that fell through when they realised that Nanowrimo had six figure debt (they were largely unable to repay the COVID debt).
She also says that people were put off by the responses of people on sites such as on Reddit. Kilby tries to defend herself over the AI sponsorship issue by saying that "we turned most of them down", as they had more companies approach them after the initial scandal broke out, and that the community could've saved Nanowrimo if they funded it.
Nanowrimo being grassroots also doesn't work because they already had a very low staff to volunteer ratio (12 staff to 800+ volunteers), and running the site costs money. She blames the fact that too many members "let themselves believe that the service we provided was free" on Nanowrimo's downfall and that the vast majority of the community didn't donate. Kilby says that she isn't blaming the community, but many arts organisations are struggling, especially due to a lack of donations. She also says that "more should've been done to earn or earn back the loyalty of this community and tangibly improve our programme offering", given the six year downward trend of participation. She then thanks the MLs, mods, and other volunteers, amongst all others who worked with the organisation and community, who participated in Nanowrimo and helped the organisation be what it is.
I recommend watching the full video because I've definitely missed bits. I don't agree with everything she said, but I can absolutely see how they needed to do massive changes around child safety, as poorly received and explained as those changes were. I'd love to hear from former mods about their thoughts on this too.
Not wholly sure how to feel about it, frankly, especially since it's not posted on the official Nanowrimo channel but Nanowrimo Kilby, but I'm not entirely surprised that it's been struggling as far back as 2018.
Edit: I posted this in another comment, but here are the pre-2018 financial info that I can find online for Nano, for comparison.
2017 - income $1.307 million ($543k donations, $322k sponsorships, $138k net merch, $168k foundations and grants, $65k events, $68k other income) and expenses were $1.197 million ($810k programmes, $298k fundraising, $89k management). 306k Nanowrimo participants and 65k camp participants, with 34k and 13k projects completed respectively.
2016 - not available on wikiwrimo.
2015 - linked but not accessible.
2014 - income $1.091 million ($482k contributions, $290k merch, $203k sponsorships, $88k foundations and grants, $25k other income) and $1.012 million expenses ($617k programme, $200k overhead, $193k fundraising). 243k Nanowrimo participants, 55k camp participants, and 40k and 9k projects completed respectively.
2013 - income $1.041 million ($481k contributions, $273k net merch, $159k corporate sponsorships, $90k foundations and grants, $35k other income) and expenses were $1.037 million ($722k programme, $159k overhead, $155k fundraising). 144k total writers but there's no number for completed projects or a Nano/camp breakdown.
2012 - income $1.009 million ($479k contributions, $273k net merch, $136k corporate sponsorships, $101k foundations and grants, $18k other income) and expenses $963k ($706k programme, $119k overhead, $138k fundraising). This also includes total assets and liabilities, which are $444k, with a change in net assets of $45k. 341k Nanowrimo participants and 28k camp participants, with no completion numbers.