For over 40 years, the 1736 Family Crisis Center has provided support for domestic violence victims, operating shelters and crisis hotlines in L.A. and Orange counties with a $15-million budget. Yet, its CEO has lived primarily in Hawaii for the past decade. During this time, the organization funded a luxury beachside apartment in Santa Monica for her visits and leased a BMW for her use at home in Hawaii, according to records reviewed by The Times and a 2019 attorney’s inquiry.
Details about the duration of these arrangements remain unclear. Board members approved the Santa Monica apartment in 2018 as a stable alternative to hotel stays, with alleged benefits like high-level security. The CEO’s compensation has drawn attention, with Carol Adelkoff earning $1.6 million over two years, partly from unused vacation payout accumulated over decades.
Adelkoff has led the nonprofit since 1984, expanding it from a $200,000 budget to a multimillion-dollar organization, largely funded through taxpayer money via government contracts. This reliance on government funds has increased scrutiny, with reports of mismanagement and investigation threats.
In 2019, three senior employees raised concerns about the CEO’s benefits. They accused the organization of fund misuse, prompting a board review and temporary suspension of Adelkoff. These employees filed lawsuits for retaliation, with two cases settled and one withdrawn, claiming no thorough investigation was conducted.
The organization refutes these claims, stating independent parties conducted investigations, clearing the CEO. In contrast, nonprofit experts highlight concerns about expenses like the luxury apartment and BMW, questioning compliance with fiscal responsibilities.
Adelkoff’s compensation package, already among the highest for L.A. area nonprofits addressing homelessness, reportedly includes a vehicle since her move to Hawaii. Her 2018 salary was $405,040, significantly more than peers heading similar organizations.
Board members, required by law to provide oversight, approved substantial payouts and benefits, yet nonprofit experts question board practices. Concerns include members serving lengthy terms and receiving compensation, contrary to best practices and bylaws.
This article reflects ongoing investigation and debate around financial practices and governance at the 1736 Family Crisis Center, integral to supporting low-income workers and addressing California’s economic divide. The piece is part of The Times’ equity reporting initiative, backed by the James Irvine Foundation.
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