OPINION: When Charity Becomes a Con — What Happens When We Lose the Public’s Trust

It was during my graduate work at Harvard Extension School that I first deeply examined nonprofit fraud. I chose to write my final research paper on a jaw-dropping case involving The Arc of Hawaii—where a longtime accountant embezzled nearly $6 million over a decade. The mission of the organization? To support individuals with intellectual and developmental disabilities. The betrayal? Using donated funds meant for the vulnerable to pay for mortgages and personal luxuries in Hawaii and Las Vegas.

The paper was titled The Loss of Trust, because that’s exactly what happens when nonprofit leaders violate their mission—trust is shattered. And without trust, even the most noble of missions fall flat.

So when I read this week’s headlines about the Foodbank of Southern California, accused of misappropriating more than $11 million in public funds, it wasn’t shock I felt—it was frustration. And deep disappointment.

Once again, a nonprofit organization, charged with feeding the hungry, allegedly became a personal ATM for its leaders. The details are appalling: luxury trips, home renovations, smartwatches, cell phones, even an artificial Christmas tree—paid for not with earned income, but with taxpayer dollars and charitable funds meant to serve people in need.

The alleged behavior wasn’t just unethical. It was heartless.

This kind of fraud is particularly offensive because it preys on the public’s generosity. Americans are giving people. We believe in causes. We donate time, money, and energy to help our neighbors. And yet, time and time again, stories like this remind us that too often, our goodwill is abused.

We should be asking hard questions:
Where was the board of directors?
Where were the checks and balances?
Why did it take years—and millions—to uncover the abuse?

The problem isn’t that people are inherently bad. The problem is a lack of oversight. A failure of accountability. And a nonprofit sector that, despite good intentions, too often relies on after-the-fact audits rather than proactive protections.

In my research, I argued that we need something more. A federally-supported, independent body to oversee the nonprofit world—made up of people from inside and outside the sector. A place where ethical standards, financial transparency, and proper oversight aren’t optional—they’re enforced. Regina Herzlinger’s “DADS” model—disclosure, analysis, dissemination, and sanctions—was one concept we studied. It’s still a good one.

Until something changes, we’ll keep seeing the same headlines: stolen funds, shattered missions, and vulnerable communities left behind.

We are a society that prides itself on compassion—but stories like this one show a shameful side. When leaders entrusted with the care of the poor use food bank funds for Vegas vacations and Christmas décor, we’re not just failing ethically—we’re failing morally.

Let this lawsuit serve as a wake-up call. Not just for California. Not just for food banks. But for every nonprofit leader, donor, volunteer, and elected official. The mission matters. And the public deserves better.

Because the loss of trust is hard to repair—and in the nonprofit world, it’s the currency we can’t afford to lose.

About the Author:
Jessica Curtis is the Founder and Managing Editor of Think American News. She holds a graduate certificates in Nonprofit Management from Harvard University, Executive Women in Leadership from Cornell University, and Women’s Entrepreneurship from Cornell University and has spent more than two decades working in media, politics, advocacy, and public affairs.