Failed fundraising efforts for Santa Fe's 400th anniversary commemoration resulted in major changes this week in the struggling organization.

An executive director and two other full-time administrative staff are losing their jobs and two big contracts for advertising and national donor-chasing have been terminated as the nonprofit tries to keep its head above water.

The changes became official Thursday night after the Santa Fe 400th Anniversary Inc. board of directors voted on a revised budget, said Maurice Bonal, volunteer board president.

"The decisions are very difficult and unfortunate, but a true sign of the times," he said. "We didn't get the funding levels that we feel we need to make Santa Fe's anniversary somewhat as prominent as the rest of the world's."

The nonprofit has spent most of the $1.1 million in public money it was given last year and this week asked City Council to allocate another $750,000 from reserve funds for the effort.

Bonal said the decision this week to trim what had been about $41,000 in monthly operating expenses was crucial to the organization's future.

Libby Dover, who took the job as executive director for a salary of $120,000 in Sept. of 2008, will work for about 30 days under her contract's termination clause, explained Bonal, calling her departure "mutual and amicable."

"She was great. We got great work out of her," he said.

Under Dover's leadership, the group produced a 3-day family festival called Viva Santa Fe in early September on the grounds at Fort Marcy Complex, and organized a short visit from the prince and princess of Spain.

"The truth is that we worked with an incredibly talented group of people. I am very proud of Viva," Dover said. "Certainly it's a disappointment .. that a lot of the money did not come in and it was one of the worse economic times to be producing events."

Early budget estimates called for about $11 million to make the 16-month anniversary program a reality. Later, organizers said they needed $7 million, then said they could make it work for $3 million.

In addition to the staff reduction, Bonal said the nonprofit nixed a $4,000 per month public-relations contract with Ballentine's PR and a $10,000 per month obligation to SHARP Alliance, a firm attempting to secure money from large corporate sponsors.

A five-member subcommittee of the nonprofit's board of directors will oversee operations after Dover leaves. Among their priorities, Bonal said, is continued fundraising, including lobbying at the city and state level, and planning for whatever educational and commemorative opportunities remain.

"We can't quit on Santa Fe's birthday no matter how hard it is economically. Personally, it's way to important," he said.

City Council Public Works Committee is scheduled to vote on additional funding for the anniversary at its meeting Monday, with a possible full council vote Wednesday.

Contact Julie Ann Grimm at 986-3017 or jgrimm@sfnewmexican.com.