The support groups were run by facilitators on a volunteer basis, and the space was rented by grants from the state (as far as I know). This is just a product of the severe budget cuts we've had to endure here in California. It's really sad.
There is nothing inherently wrong with a free support group model; in fact, charging exorbitant fees for a freaking support group is almost immoral, favoring people with lots of cash to blow as opposed to favoring people who need the most help (usually people who are broke). The only issue was having a safe place to chat, and through the non-profit org they could rent a room in an office building. Right now, they're trying to keep things afloat and having it at other places, but attendance has dwindled horrifically.
I feel like ->-bleeped-<- that I came in on this great support system way too late, near the end of its life. It's kind of disillusioning. I mean, I'm not disillusioned with my transition, that's just groovy; I just wish I had more of an IRL support system. I guess there's always this website, and my therapist (who doesn't know that much really about trans-issues).