0:00 - SF Homeless Non-profit Accused of Wasteful Spending City Funds 4:50 - Lack of Oversight and a Pattern of Corruption 7:00 - Why Good Nonprofits Don’t Get Government Funding 8:54 - San Francisco is Not Alone
In a recent interview, homeless recovery advocate Tom Wolf discussed troubling allegations of financial mismanagement at HomeRise, one of the largest providers of homeless housing in San Francisco. HomeRise currently has contracts worth close to $100 million with the city over five years to provide housing.
According to Mr. Wolf, a third-party audit of HomeRise released yesterday found “financial malfeasance and gross misreporting of funding.” Restricted funds meant to house the homeless were allegedly used for lavish events costing $12,000 and limousines. Over 118 credit cards were issued to employees, with nearly half of staff receiving cards and a third having limits over $10,000.
While new leadership is attempting reforms, Mr. Wolf argues this “does not excuse the malfeasance” of the past three years. He believes further investigation is needed due to the “high suspicion of fraud,” especially with the credit card spending. If serious misconduct is found, Mr. Wolf calls for criminal prosecution and redistributing HomeRise’s contracts.
Mr. Wolf’s concerns are part of a larger pattern of allegations against San Francisco homeless nonprofits. 11 organizations have faced investigations for issues like misappropriation of funds and wage theft in recent years. Mr. Wolf advocates increased auditing and accountability for all nonprofits receiving over $5 million from the city.
While the allegations have yet to be proven, this interview raises valid questions about financial oversight of taxpayer dollars meant to help the homeless. With billions at stake, city leaders must ensure funds are properly managed and actually used to house the homeless.
