Carol Adelkoff, the CEO of the 1736 Family Crisis Center, reportedly collected more than $1.6 million in compensation over the past two years while residing in Hawaii, according to media reports. Adelkoff has apparently lived in Hawaii for over a decade, operating a Los Angeles-based nonprofit remotely.
Approximately 94% of the $15 million annual budget for the 1736 Family Crisis Center comes from taxpayer funds, according to the organization's tax filings. Critics argue that a significant portion of these funds should be directed toward addressing homelessness rather than personal enrichment.
The reports come as homelessness in Los Angeles has seen an increase. The most recent homeless count by the Los Angeles Homeless Services Authority indicated a 3.4% rise in homelessness. This is occurring despite substantial city investment in addressing the crisis.
Further complicating matters, the Trump administration has suspended funding to the Los Angeles Homeless Services Authority (LAHSA) due to allegations of fraud and financial mismanagement. LAHSA has initiated legal action to reclaim these frozen federal funds.
Calls for greater oversight have been directed toward Los Angeles city officials, including Mayor Karen Bass and City Council Housing and Homeless Committee Chairwoman Nithya Raman. The situation highlights concerns about the effectiveness and accountability of organizations receiving public funds to combat homelessness.
While nonprofit leaders are entitled to fair compensation, the nature of homeless services work should ideally prioritize community needs over executive luxury, critics suggest. The substantial payout to Adelkoff, even if attributed to a demanding work schedule, is seen by some as indicative of potential systemic issues within the homeless-services sector, often referred to as the "homeless-industrial-complex."