Nonprofit Leadership and Financial Scrutiny at 1736 Family Crisis Center

For over forty years, the 1736 Family Crisis Center has provided vital services for victims of domestic violence, operating shelters and crisis hotlines across L.A. and Orange counties. The organization currently operates on a $15-million budget. However, scrutiny has emerged regarding its operations, particularly concerning its chief executive and her residency.

The nonprofit’s chief executive resides primarily in Hawaii, a detail verified over the past ten years. During part of this time, the organization funded a luxury beachside apartment in Santa Monica for her local visits and leased a BMW for personal use at her residence on the Big Island. These actions have raised questions, as reviewed by The Times and highlighted in a 2019 report by a lawyer responding to employee concerns. The duration of the apartment payments remains uncertain, although board approval for the arrangement occurred in 2018.

The nonprofit’s attorney, Kerry Garvis Wright, stated that renting the apartment offered more predictable expenses than hotel stays during L.A. visits. Additionally, the apartment provided enhanced security for the executive, whose safety is a concern. Despite these explanations, the CEO’s compensation has drawn significant attention. Latest tax filings reveal a $1.6 million payout over two years, half attributable to unused vacation accrued over four decades, as noted by The Times.

Since 1984, Carol Adelkoff has led the 1736 Family Crisis Center, guiding it from a $200,000 annual budget to its current multimillion-dollar stature. A substantial portion of its activities is funded by government contracts, including federal, county, and city grants. The nonprofit’s role has been pivotal amid the homelessness crisis, with the Los Angeles Homeless Services Authority allocating $25 million to its efforts since 2021. Federal oversight has increased amid scrutiny regarding fund management, though no allegations implicating the 1736 FCC are reported.

Political motivations have been suggested in the increased federal attention to homelessness spending. Los Angeles Mayor Karen Bass highlighted these concerns, objecting to perceived bias in a September U.S. House subcommittee hearing on homelessness spending fraud.

In 2019, three senior employees enlisted attorney Dorsey Kleger-Heine to address alleged misuse of funds for unnecessary benefits provided to the Hawaii-resident executive. Kleger-Heine presented these concerns to the board in December 2019 and soon after reported them to California’s attorney general’s office. Confidentiality prevents confirming any investigations or charges, according to Alex Hernandez, deputy press secretary for the attorney general.

The response to these allegations included placing the CEO and chief financial officer on leave temporarily. However, both returned to their positions within weeks as per emails. Legal representation for the center asserted no valid grounds existed for the leave. A Times reporter found difficulties contacting the employees involved; nondisclosure agreements barred commentary in some cases.

Subsequent legal action involved claims of retaliation and wrongful termination by the three employees. Court records show most cases were settled or withdrawn, though the plaintiffs contested any investigation into their 2019 claims. The center maintained that two independent third-party investigations cleared the CEO completely, as stated by attorney Kerry Garvis Wright.

The nonprofit’s financing included $6,500/month payments for an apartment in Santa Monica, accompanied by additional amenities such as cleaning, internet, and TV subscriptions. Wright stated the board considered these as travel expenses akin to hotel costs, justified by security requirements.

Discussions with other domestic violence organization CEOs indicated shared experiences of staff threats but noted a lack of precedent for personal security measures in their roles. Yael Fuchs, a legal expert, suggested such expenditures could attract regulatory interest from charity regulatory bodies.

Further details revealed a leased vehicle in Hawaii, justified by the nonprofit as part of the CEO’s long-standing compensation package. Financial oversight by the board is vital for these spending decisions.

In the realm of nonprofit executive salaries, Adelkoff’s remuneration significantly exceeds her peers. Comparative figures show a $405,040 salary against markedly lower figures for comparable nonprofit leaders in L.A.

The accountability of nonprofit boards is crucial, as highlighted by experts like Geoff Green, CEO of CalNonprofits. Despite the lack of term limits, longstanding board members raise concerns. Ron Troupe’s compensation for board service diverges from standard practice, raising governance questions within the organization. Former board members have indicated dissatisfaction with progress on addressing raised issues.