The chief executive of a Los Angeles-based homeless services nonprofit received over $1.6 million in salary, bonuses, and vacation payouts during a two-year period, while residing in Hawaii. Carol Adelkoff, CEO of 1736 Family Crisis Center, was reportedly the highest-paid executive in the sector in Los Angeles, earning $907,923 in 2023 and $742,181 in 2024.
This compensation significantly exceeded that of leaders at larger homeless service organizations in Los Angeles County, according to the LA Times. The 1736 Family Crisis Center, which provides services including domestic violence shelters, crisis hotlines, and homeless programs across Los Angeles and Orange counties, has an annual revenue of approximately $15 million. Roughly 94% of this revenue comes from government grants, according to the nonprofit's tax filings.
Adelkoff stated that the large payouts were primarily due to cashing out decades of unused vacation time rather than a sudden salary increase. She explained that her base salary has remained around $405,000 for several years and that approximately $824,000 of the total amount paid over the two years represented accumulated vacation time dating back decades. The next highest-paid employee at the organization, the finance director, earned $206,000.
"The salary didn’t jump like that," Adelkoff said, adding that it was a matter of "reducing accrued vacation liability on the books and paying it out." The nonprofit's attorney, Kerry Garvis Wright, confirmed that the board worked with legal and financial advisors to address the growing vacation liability before Adelkoff's eventual retirement, citing the demands of her 40-year tenure as the reason she was unable to take time off.
Nonprofit governance experts have raised questions about the payout and the oversight. Brian Mittendorf, an expert in nonprofit accounting at Ohio State University, questioned the appropriateness of allowing an executive to accrue such a large amount of vacation time and then have it paid out. Laurie Styron, CEO of the nonprofit watchdog CharityWatch, called the payout "highly unusual" and questioned the decision-making process.
Experts also noted that while California law does not require employees to forfeit unused vacation time, most nonprofits set limits on how much paid time off employees can accumulate. The LA Times reported that 1736 Family Crisis Center capped vacation accrual for other employees, but not for Adelkoff. Additionally, Adelkoff has reportedly listed the Big Island of Hawaii as her primary residence for over a decade, with property records showing she owns a home there, and court records indicating she lives there year-round. Adelkoff declined to confirm her residence, citing security concerns due to the nature of the nonprofit's work with victims of abuse. She also did not address questions about her travel to Southern California or who funded those trips.
Other nonprofit leaders told The Times that while some executive duties can be performed remotely, regular visits to shelters and engagement with staff, donors, and clients are crucial for community-based organizations. Mittendorf suggested that Adelkoff's remote living situation could create financial burdens for the organization.
The nonprofit stated that Adelkoff works an average of 70 hours per week and that her compensation has returned to its previous levels now that the vacation payouts have concluded. For context, the 1736 Family Crisis Center is located in LA's Arlington Heights neighborhood.