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UPDATE:
So, something fishy may be going on. I reached out to both the director and the hiring manager with a typical, 'Thank you for the opportunity, etc'. They both reply back with, 'It was a pleasure to meet with you' and then one of the goes even further and says, 'We'd like for you to be a part of a project we have coming up and can you spare 6-7 hours a week away from your role to assist us.'
Now, when I got my feedback, my boss intercepted it and all the criticisms were really generic. So I never heard from the director or the manager themselves about what they didn't like. It was all through my immediate superior.
If they thought I was trash, why are they asking me to be a part of a really important project if they felt my perspective and input wouldn't be useful to the department?
I've got my conspiracy theory hat on, and I'm trying not to get too upset or worked up.
Your cheap labor. They'll act as if it's some sort of way for you to gain a special favor with them, then in reality its just free work for them. You really need to look at the character of these people and see if they're truly honorable people to work with. Because its definitely possible they could just be using you for you talents but trying to avoid rewarding you financially.
You can also quit and just have them hire you as a consultant. Its alot easier to bank that way, but benefits will have to be gotten privately.