Crisis Center Executive Compensation Drew Scrutiny
Nonprofit leaders and board members should review compensation policies for executives based in remote locations.
Updated on Oct. 13, 2026 in Remote Work
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The 1736 Family Crisis Center, a Los Angeles nonprofit, faces scrutiny regarding the $1.6 million compensation package paid to CEO Carol Adelkoff over 2023 and 2024. The organization manages a $15 million budget, largely derived from government contracts.
Why it matters
Taxpayer-funded nonprofits face increased pressure to justify executive expenses and compensation structures. This case highlights how board-approved perks, such as housing and vehicles for remote executives, can become focal points for financial oversight inquiries.
Government contracts provide 94 percent of the $15 million budget, including at least $25 million from the Los Angeles Homeless Services Authority since 2021. The nonprofit also covers a $7,200 monthly total cost for a Santa Monica apartment used by the CEO.
The players
Carol Adelkoff
The longtime CEO of the 1736 Family Crisis Center who has managed the organization remotely from Hawaii since 2002.
1736 Family Crisis Center
A Los Angeles-based nonprofit organization that provides services for families and victims of domestic violence.
Los Angeles Homeless Services Authority
A joint powers authority that serves as a primary source of government funding for homelessness services in the region.
The details
The board authorized the Santa Monica apartment expense in June 2018, while the BMW provided for the CEO is part of a package established before 2002. Management maintains that the high compensation levels resulted from the liquidation of accrued vacation liability. Despite these claims, the executive has operated from Hawaii for at least 11 years while the nonprofit maintains its headquarters in Los Angeles.
Timeline
1984: Carol Adelkoff began leading the 1736 Family Crisis Center.
2002: Carol Adelkoff relocated to Hawaii.
December 2019: Senior employees alleged misuse of organization funds.
2023-2024: Carol Adelkoff received $1.6 million in compensation.
Market Landscape
This situation tests the boundaries of the IRS Intermediate Sanctions rules regarding reasonable compensation for nonprofit executives. It marks a departure from standard oversight, raising questions about how boards justify perks for leaders who operate primarily in remote locations.
Operators managing nonprofits should ensure that all executive compensation, including perks like housing or vehicle allowances, is clearly documented and periodically benchmarked against industry standards. Failure to maintain transparent records can trigger intensive audits, especially when public funding comprises the vast majority of the budget.
The takeaway
Executive compensation structures require rigorous board documentation, particularly when perks diverge from standard employment norms. Operators should audit their benefit policies annually to ensure they align with the organization's fiduciary obligations and public funding mandates.
Further reading
For more on managing distributed teams and organizational governance, see the Remote Work section.
Source note: This article includes information reported by Mail Online.
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