At night, Gibbs would occasionally flash the light for brief instances. One night, he turned the light on for a friend who was guiding a cargo vessel through Puget Sound and forgot to turn it off. The next morning, the Coast Guard received several calls regarding an unauthorized beacon, and a Coast Guard officer paid a visit to the light.
After inspecting the lighthouse, the officer ordered that the light was to remain off or be operated according to the rules and regulations for private aids to navigation as stipulated by the Coast Guard. Mr. Gibbs applied for permission and passed inspection. The light's was changed to fixed-red and reduced in power, but Skunk Bay Lighthouse has been operational ever since.
In 1971, a group of twenty people organized as the Skunk Bay Lighthouse Association and purchased the structure. Finding the one-room, three-bunk lighthouse too restricting, the fun-loving group enlarged the lighthouse, adding two bedrooms, a bathroom, a living/dining room, and a loft. The room from the original lighthouse was converted into a kitchen, and the completed structure was dedicated in 1982. During the remodeling, a 1940 fog bell was added to the property.
The Skunk Bay Lighthouse Association is now limited to twelve members, who each own a share. Each share is entitled to a one-week-stay at the lighthouse each quarter. The association sets aside two weeks each year for work parties, where members and their families spruce up the grounds and complete maintenance projects.
In 2021, Artworks Florida manufactured and installed a replica fourth-order Fresnel lens in Skunk Bay Lighthouse. Allan and Nora Davis commissioned the lens to celebrate the 50th anniversary of the Skunk Bay Lighthouse Association and gave ownership of the lens to the U.S. Lighthouse Society whose headquarters is just down the road from Skunk Bay Lighthouse.
The "memorial outhouse" stands alone guarding the entrance to the lighthouse. Public access to the facilities is not available.