Scrutiny Over Financial Practices at 1736 Family Crisis Center

Background and Financing

The 1736 Family Crisis Center has been a pivotal support system for victims of domestic violence in L.A. and Orange counties for over four decades. Operating on a $15-million budget, it provides shelters and crisis hotlines.

However, there’s growing concern about the primary residence of its CEO, Carol Adelkoff, who has lived in Hawaii for at least ten years. During this time, the organization paid for her $6,500-a-month luxury beachside apartment in Santa Monica and leased a BMW for her personal use in Hawaii.

Spending on Executive Benefits

The Times reviewed nonprofit records and involved a lawyer who handled employee concerns in 2019. In 2018, board members approved the apartment arrangement, citing predictable costs compared to hotel stays. This was seen as a business travel expense, even though it included amenities like weekly cleaning and internet subscriptions.

The organization also covered expenses for a BMW for Adelkoff, which was part of her compensation package for work, raising funds, and overseeing operations.

Concerns about Mismanagement

Auditors have highlighted lax oversight and financial mismanagement in government contracts with nonprofits, including the 1736 FCC. LAHSA has faced investigation over its homelessness funds. The spotlight included Adelkoff’s large compensation package.

Some senior employees of the 1736 FCC raised alarms over these benefits, claiming they misuse nonprofit funds. These concerns were detailed in a letter to the California attorney general’s office, although no charges or investigations have been confirmed.

Board Reactions and Procedures

Adelkoff’s high compensation has drawn attention, especially given her vacation payout of $824,000 due to accumulated hours. Her earnings outpace her peers, with median compensation for similar nonprofits at $159,737.

The board of directors plays a key role in oversight. Questions have been raised about its practices, including no term limits for board members and payments to members like Ron Troupe, contrary to the nonprofit’s bylaws.

Some board members, dissatisfied with progress on these issues, resigned. This reporting is part of The Times’ initiative funded by the James Irvine Foundation to explore economic challenges facing low-income workers.