Key Takeaways:
– Nonprofit Bronx Community Foundation faces allegations of betraying its core mission.
– The foundation allegedly spent more on overhead than on charitable giving.
– Numerous firings, resignations, a rescinded state grant, and concerns from donors have recently shaken the organization.
– The foundation’s high overhead spending has sparked accusations of financial mismanagement.
– An open letter from leaders and Bronxites has called for the resignation and replacement of the entire board of directors.
The Bronx Community Foundation, a prominent charity within the Bronx, is facing waves of criticism around the transparency of its activities. Community groups and ex-board members claim that the foundation has strayed from its original purpose. The organization continues to attract significant philanthropy, but the allocation of these funds has been called into question.
Influential Bronx Community Foundation Under Scrutiny
Desmon and Derrick Lewis established the Bronx Community Foundation in 2017 intending to draw substantial philanthropy and distribute the donations as grants to local nonprofits. However, allegations have emerged that less than a quarter of the $12.6 million in donations received between 2019 and 2023 have supported borough charities. Critics cite that excessive spending on overhead and consultants has taken precedence over charitable giving.
Concerns about the organization’s finances and accountability have stirred up significant turmoil. Recent firings and resignations have disturbed partnerships and prompted the withdrawal of a state grant, causing major donors to fret.
Accusations Point to Financial Mismanagement
The foundation has faced public accusations of mismanagement of funds. For instance, the charity accumulated over $4.6 million in donations and grants in 2020 but distributed just $916,000 to local charities. Even in light of this considerable increase in revenue, the charity’s tax documents show heavy expenditure on overhead costs such as salaries, consultation fees, and fundraising costs.
The combination of high overhead costs and low charitable spending has attracted condemnation from industry analysts and stakeholders. Such patterns are perceived as evidence of inefficiency in the charitable sector, risking independent evaluators lowering the charity’s rating.
Call for Leadership Resignation and Transparency
The foundation’s critics are calling for increased transparency from the organization. In November, a letter accused the Bronx Community Foundation of hoarding funding sources other groups rely on, demanding the resignation and replacement of the entire board of directors. The call for a leadership change was backed by allegations of canceled grant rounds despite successful fundraisers.
Push for Improved Accountability
The forceful criticisms of the Bronx Community Foundation have alarmed supporters and donors. The firing of its CEO and frequent resignations within the board have shaken donor confidence, with some withdrawing funding after learning of the leadership changes.
The organization has even faced setbacks in public funding. A scheduled state grant was withdrawn due to concerns over leadership turnover and complaints around financial transparency and conflict-of-interest protocols.
Despite these challenges, the foundation’s leaders have made commitments to enact reforms and increase transparency. The board has promised to implement improved accountability standards and provide clearer information about the foundation’s finances.
The Lewis brothers, who serve on the foundation’s board, have pledged to continue their work, aiming to address systemic inequities in the Bronx. Despite the current hurdles, they insist on harnessing resources to instigate meaningful change in the community. While the scrutiny continues, the fate of their Bronx philanthropy project hangs in the balance.