LA Nonprofit CEO Accused of Living Lavishly in Hawaii on Taxpayer Funds

A Los Angeles-based nonprofit executive tasked with assisting domestic violence victims and the homeless has been living in Hawaii for at least a decade while allegedly enjoying lavish perks funded by her organization. Carol Adelkoff, CEO of 1736 Family Crisis Center, reportedly amassed $1.6 million over two years, making her the highest-paid executive in the city's homeless services sector, according to the Los Angeles Times.

Adelkoff told the Times that nearly half of the $1.6 million payout was for unused vacation time accumulated over four decades of employment. She stated her base salary has remained around $405,000 for several years, and the bulk of the recent payment represented cashing out accrued vacation liability. The organization's attorney, Kerry Garvis Wright, defended the payout as a way to reduce the growing vacation liability before Adelkoff's eventual retirement, citing the demands of her 40-year tenure that made taking time off difficult.

Beyond her compensation, the nonprofit also reportedly paid $6,500 per month for a luxury Santa Monica apartment for Adelkoff's use during visits to Southern California. Additionally, the organization leased a BMW for her personal use in Hawaii, where she has resided for over ten years, despite the nonprofit having no operational presence in the state. Records indicate the Santa Monica apartment arrangement began in 2018, with the organization covering rent the following year. It remains unclear how long this arrangement continued.

Concerns about the organization's spending practices were raised internally in 2019 by three senior staffers who hired an attorney to address allegations of improper use of charitable funds. Their attorney subsequently filed a complaint with the California Attorney General's Office charities division.

Experts in nonprofit accounting and governance have expressed skepticism regarding the significant vacation payout and the oversight mechanisms in place. Brian Mittendorf, an expert from Ohio State University, questioned the appropriateness of allowing such a large sum of unused vacation to accrue and be paid out. Laurie Styron, CEO of CharityWatch, described the payout as "highly unusual." While California law generally prevents employers from forcing workers to forfeit unused vacation, most nonprofits cap the amount of paid time off employees can accumulate. The 1736 Family Crisis Center reportedly capped vacation accrual for other employees but not for Adelkoff.

Adelkoff has listed the Big Island of Hawaii as her primary residence for over a decade, with property records showing she owns a substantial home there. Court records from her daughter also indicate Adelkoff lives there year-round. Adelkoff declined to confirm her primary residence, citing security concerns due to the nature of the nonprofit's work serving victims of abuse. She also did not specify the frequency of her travel to Southern California or who funded those trips.

Nonprofit leaders interviewed by The Times noted that while some executive tasks can be performed remotely, regular in-person engagement with shelters, staff, donors, and clients is typically crucial for community-based organizations. The nonprofit stated that Adelkoff works an average of 70 hours per week and that her compensation has returned to historical levels following the vacation payouts. The 1736 Family Crisis Center, which receives approximately 94% of its annual $15 million revenue from taxpayer-funded government grants, operates domestic violence shelters, crisis hotlines, and homeless programs across Los Angeles and Orange counties.