Maryland Nonprofit Receives $6.1 Million Amid Financial Concerns

Maryland has awarded over $6.1 million in taxpayer funds to a nonprofit organization, We Our Us, which has not submitted any financial records since 2022. This decision has raised significant concerns among transparency advocates who question the organization’s qualifications to manage public funds. The lack of recent financial documentation highlights ongoing accountability issues within Maryland’s partnerships with nonprofits.

The funding was approved by Governor Wes Moore as part of a strategy to engage justice-involved youth in Baltimore City. Moore emphasized the importance of community partnerships in his announcement, stating that this initiative exemplifies how “partnership produced progress.” Nonetheless, the decision to allocate such a substantial amount without verified financial oversight has prompted skepticism from experts in nonprofit accountability.

Concerns Over Financial Transparency

According to specialists in nonprofit accounting, We Our Us’s failure to file necessary tax documentation raises critical questions about its capacity to handle significant government funding. Brian Mittendorf, a professor at Ohio State University, remarked, “At the bare minimum, being up to date in compliance is necessary for receiving government funding for grants in general.” He stressed the need for nonprofits to provide transparency about their use of taxpayer money.

Similarly, Erica Harris, a professor at Florida State University, pointed out the implications of the organization not participating in the tax system. “With the absence of a nonprofit tax return, we have no idea what you’re doing with our money,” she stated. These sentiments underline the broader issue of how state agencies manage and allocate funds to organizations lacking adequate financial reporting.

Responses from State Officials and Financial Context

Questions directed at Moore’s office regarding the vetting process for We Our Us were redirected to the Department of Juvenile Services (DJS), which ultimately referred inquiries to the Interagency Rate Council. DJS confirmed that the contract with We Our Us commenced on September 1, 2023, and is set to run until June 2030. Importantly, the organization has not yet received any funds nor submitted billing documentation.

A DJS spokesperson emphasized their commitment to transparency, stating, “DJS supports a transparent process that includes the rate setting through Maryland’s Interagency Rate Council.” However, the lack of recent financial records from We Our Us raises concerns about the organization’s ability to effectively utilize such a large grant.

The most recent tax form available for We Our Us, dated 2022, indicates the organization generated $328,000 in revenue with no paid employees, relying instead on a part-time volunteer board. Notably, over 60% of its reported spending was categorized as “other,” lacking detailed explanations about the use of funds.

With services listed on their website including mentorship and conflict mediation, experts question whether We Our Us has the infrastructure necessary to manage the complexities of a $6 million grant. Mittendorf noted, “From the public records, we don’t see any indication that it’s got a track record.”

In light of these findings, the Baltimore Sun reported earlier this year that the Maryland government does not currently track the total amount of taxpayer money allocated to nonprofits, further complicating the issue of accountability.

Additionally, We Our Us is slated to receive $1 million from Baltimore City’s opioid settlement with Walgreens, although the grant agreement has yet to be finalized. A spokesperson from the mayor’s office confirmed that funding would only be released after approval from the Board of Estimates.

As Maryland navigates these challenges, the situation surrounding We Our Us serves as a critical reminder of the need for transparency and accountability in public funding for nonprofit organizations.