For over forty years, the 1736 Family Crisis Center has provided crucial assistance to victims of domestic violence. Operating shelters and hotlines across Los Angeles and Orange counties, the organization’s budget now stands at $15 million. The nonprofit is under scrutiny due to its CEO’s residence and associated expenses.
CEO’s Living Arrangements and Compensation
The CEO of the 1736 Family Crisis Center has lived primarily in Hawaii for at least the past decade. During this time, the organization financed a luxury beachside apartment in Santa Monica for her visits and leased a BMW for personal use in Hawaii. These transactions, outlined in records reviewed by The Times, raise questions about fiscal responsibility.
Emails from board members reveal approval of the apartment arrangement in 2018. The nonprofit described the apartment as a business travel expense, similar to a hotel stay, providing predictable costs and enhanced security. In August, The Times reported that the CEO received $1.6 million over two years, half of which was payment for unused vacation time accrued over her lengthy tenure.
Rapid Growth and Government Funding
Since 1984, the organization has evolved from a modest annual budget to a multimillion-dollar entity largely funded by government contracts. The Los Angeles Homeless Services Authority (LAHSA) and other agencies have funneled taxpayer money into nonprofits like the 1736 FCC to combat homelessness, including $25 million since 2021. Oversight concerns have risen, leading to investigations and, in some cases, federal criminal charges.
Currently, there are no known investigations into the 1736 Family Crisis Center. Still, concerns persist. A Republican lawmaker cited the CEO’s compensation while calling for her testimony on alleged fraud in homelessness spending.
Employee Concerns and Legal Actions
In 2019, three senior employees expressed alarm over the nonprofit’s spending on benefits for its CEO. They hired attorney Dorsey Kleger-Heine to address their concerns about potential misuse of funds. Kleger-Heine’s complaint to the California attorney general remains confidential, with no charges filed against the organization to date.
The board temporarily placed the CEO and the chief financial officer on leave, but both were reinstated within weeks. Three employees later filed lawsuits against the organization for retaliation and wrongful termination. Records show two cases settled and one withdrawn. Allegations of inadequate investigation into the 2019 concerns remain contested, with the nonprofit’s attorney claiming thorough exoneration of the CEO.
Expenses and Executive Decisions
Reviewed records confirm that the nonprofit paid $6,500 per month for the CEO’s Santa Monica apartment. Board members labeled the apartment and its related costs as business expenses, similar to hotel stays. Besides rent, weekly cleaning services, and subscriptions added to the monthly cost.
The CEO argued that safety concerns, exacerbated by her role, necessitated such arrangements. Other executives working with domestic violence organizations in the area shared lesser security measures and no personal threats requiring such benefits.
Leadership and Oversight
The nonprofit board authorized the car and apartment benefits amid rising CEO compensation. The CEO’s salary in 2018 reached $405,040, excluding additional compensation, placing her among the highest-paid nonprofit executives in similar fields. Her compensation package has nearly doubled recently, with unused vacation payouts significantly boosting her earnings.
The board’s longstanding composition raises questions, with several members serving over 14 years, despite no mandated term limits. Geoff Green, CEO of CalNonprofits, emphasized boards’ responsibility to ensure organizations comply with missions and legal standards. Concerns about paid board members contradicting internal bylaws also emerged. One board member received significant compensation during his tenure.
Efforts by The Times to gather responses from current board members yielded limited feedback. A former board member resigned due to perceived negligence in addressing employee concerns and did not provide further comments.
This article belongs to The Times’ equity reporting initiative, supported by the James Irvine Foundation, examining challenges faced by low-income workers and initiatives addressing California’s economic disparities.