Financial Practices and Executive Compensation at 1736 Family Crisis Center

For over 40 years, the 1736 Family Crisis Center has been assisting victims of domestic violence by managing shelters and crisis hotlines in Los Angeles and Orange counties, operating on a budget of $15 million. However, the primary residence of the nonprofit’s CEO has been in Hawaii for at least a decade.

The organization has been footing the bill for her luxury beachside apartment in Santa Monica for visits to the region and providing a leased BMW for her use in Hawaii, as per nonprofit records reviewed by The Times. The duration and continuity of the payment for the $6,500-per-month apartment remain unclear. Emails indicate board approval for the arrangement began in 2018, while a bank transaction confirmed rent payment the following year. Kerry Garvis Wright, the center’s attorney, has not disclosed the duration of these payments.

In a letter to The Times, Wright justified the apartment rental citing predictable expenses compared to hotel stays and enhanced security arrangements for the executive.
Previously, The Times reported large compensation packages awarded to Carol Adelkoff, the nonprofit’s CEO. Organization tax filings reveal that Adelkoff received $1.6 million over two years, with a large portion from unused vacation accrued over 40 years. Since 1984, she has developed the 1736 Family Crisis Center from a $200,000 annual budget into a multimillion-dollar operation, largely funded by taxpayer money from federal, county, and city grants.

Organizations like 1736 FCC are central to government responses to the homelessness crisis. The Los Angeles Homeless Services Authority has directed billions to local nonprofits since 2021, with 1736 FCC receiving at least $25 million. Federal lawmakers and agencies are scrutinizing this expenditure. Some agencies have initiated criminal cases concerning taxpayers’ money spent on homelessness services, though none are pending against 1736 FCC currently.

L.A. Mayor Karen Bass has suggested political motives are behind national scrutiny and missed a U.S. House subcommittee hearing regarding alleged fraud in homelessness funding. A Republican lawmaker cited Adelkoff’s compensation in a letter calling for her testimony.

In 2019, three senior employees hired attorney Dorsey Kleger-Heine due to concerns over nonprofit funds used on benefits while Adelkoff lived in Hawaii, where the organization operates no shelters. They alleged misuse of funds and laid out these claims to the board in December 2019 before filing a complaint with the charities division of the California attorney general’s office, shared with The Times. However, Alex Hernandez, deputy press secretary, noted no record of charges filed against the nonprofit or its executive.

Following allegations in 2019, former board president placed Adelkoff and the nonprofit’s CFO on leave for several weeks, although they returned to work later that month. Wright, the center’s attorney, found “no basis” for the leave.

Times reporters were unable to reach the employees who shared information with Kleger-Heine. They later filed lawsuits for retaliation and wrongful termination. Two cases were settled, and one was withdrawn. Despite allegations, Wright stated two independent investigations cleared the CEO, without providing further investigation details.

Records show the nonprofit paid $6,500 monthly for a Santa Monica apartment two blocks from the beach and 11 miles from its office. The one-bedroom apartment featured luxury amenities like a gym, rooftop pool, and pet spa. Associated costs, including cleaning and subscriptions, summed to roughly $7,200 monthly.

Adelkoff, citing safety concerns due to her role, chose this apartment offering security measures. She explained that her work made her a target for abusers.

Two CEOs of other Southern California domestic violence organizations noted staff threats from abusers and one instance of an abuser at the office parking lot. However, they lacked experience of abusers targeting staff homes or the need for heightened personal security.

Luxury benefits paid by nonprofits would likely interest regulatory bodies, according to Yael Fuchs, a lawyer with prior charities enforcement experience in New York. Wright confirmed the apartment costs constituted an expense, excluding it from taxable compensation.

Letters to the board and the attorney general from Kleger-Heine highlighted payments for a BMW lease for Adelkoff in Hawaii, covering relevant costs like fuel and maintenance. The nonprofit had provided similar benefits prior to her relocation out of California in 2002.

At the time of additional benefits payment, Adelkoff had already one of the highest salaries among executives overseeing homelessness programs in Los Angeles. In 2018, she earned $405,040, which in comparison exceeds the $250,374 salary of the CEO of PATH, an organization with significantly larger revenue.

Adelkoff’s compensation package has dramatically increased recently. Over 2023 and 2024, the nonprofit paid her $824,000 for accrued vacation. The absence of vacation limits enabled this payout, significantly exceeding her peers’ compensation recorded by The Times.

Nonprofit boards function as oversight bodies that approved Adelkoff’s payment claims. Per Geoff Green, CEO of CalNonprofits, boards represent public interest in maintaining organizational mission integrity and legality.

Concerns rise about prolonged tenure of 1736 FCC’s board members. Five have served at least 14 years, including current president Ron Troupe. Though term limits aren’t mandated, nonprofit experts recommend them as best practice. Survey data shows almost all nonprofit boards practice terms, with over half imposing term limits.

Unusual board member compensation also occurred, with Troupe receiving $66,000 annually, and even earning $97,500 one year, against nonprofit bylaws prohibiting board member payment. The Times’ inquiry into Troupe’s compensation outside his board duties remains unanswered.

The Times sought responses from board members present during relevant decisions, with only one member responding and subsequently resigning due to slow progress addressing employee concerns.

This article forms part of The Times’ equity reporting initiative, funded by the James Irvine Foundation, exploring challenges low-income workers face and efforts addressing California’s economic divide.