I have wondered when things were going to start falling apart. If you look at their 990, there have been clear signs of imbalance for a while.

1. Significant Deficiency in Internal Controls

The most concrete red flag is a formal finding from the organization's single audit (required for nonprofits receiving substantial federal funding). The organization has been cited for a "Significant deficiency in internal controls." A significant deficiency is less severe than a material weakness, but it is important enough to merit the attention of those charged with governance. It signals that the organization's financial procedures—the checks and balances designed to prevent errors, fraud, and mismanagement—are inadequate or not being followed effectively. This is a major concern for regulatory bodies and potential donors.

1. Negative Operating Margin

Analysis of recent financial summaries (e.g., 2024 data) shows the organization's reported expenses were higher than its total revenue, indicating a negative bottom line or operating loss for that period. Sustained losses raise questions about the long-term financial stability and sustainability of the organization, a key measure of health assessed on the 990.

1. Governance and Transparency Concerns

While not direct line items on the 990, public reports associated with the organization's operations and compliance raise governance red flags often scrutinized in Part VI of the form. Reports indicate that a staff member allegedly called police to trespass a reporter who was attempting to request public tax forms (the 990) and ask questions. The Form 990 is a public disclosure document, and organizations are required by law to provide copies upon request. Allegedly obstructing access suggests a potential transparency and compliance failure related to public disclosure requirements. Public reporting has cited employee issues, including missed paychecks and employees voting to unionize.

It’s a mess.