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Sdbuzz > Blog > News > Charity Diverts Millions to CEO Foundation
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Charity Diverts Millions to CEO Foundation

By San Diego Buzz Team Last updated: August 13, 2024 3 Min Read
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Charity Diverts Millions to CEO Foundation

Welcome to Missoula, Montana, where beside the peaceful Clark Fork River lies an office building that houses the secretive multi-million-dollar foster care charity known as MAC Foundation. Yet, strangely, there is no visible trace of MAC’s presence.

Established by San Diego-based foster care charity, New Alternatives, MAC has been the recipient of millions of taxpayer dollars since 2015. Shockingly, most of the money just sits idle in MAC’s accounts, amounting to $20.6 million in 2022, as per tax records.

Except for funding a single study, MAC has done nothing except pay its own CEO, Michael Bruich, on top of his regular salary at New Alternatives. This financial setup is not illegal, but highly unusual for a charity.

New Alternatives receives substantial public funding to care for vulnerable young individuals, yet it conservatively manages its finances by channeling unspent funds to MAC, a practice not typical for a charitable organization.

Reshae Cuevas, an individual who experienced both sides of New Alternatives, shared her concerns about the disparity in spending, with facilities being understaffed and lacking necessary resources for children in care.

While New Alternatives defends its financial practices, concerns remain about the substantial funds parked in MAC’s account, potentially to the detriment of the foster kids the money was intended to support.

CharityWatch CEO, Laurie Styron, emphasized the importance of funds being used for their intended purpose to aid foster children, questioning the rationale behind accumulating funds instead of disbursing them for critical services.

Shedding light on the governance structure, it became evident that New Alternatives’ and MAC’s boards are primarily comprised of individuals closely associated with CEO, Michael Bruich, rather than having diverse representation from the local community or industry.

These revelations prompt a crucial discussion on whether public funds allocated to help foster kids are being optimally utilized or diverted in an unconventional manner.

Carolyn Griesemer, a seasoned attorney in the field of foster care, highlights the responsibility that non-profits bear when managing government funding, emphasizing the need for transparency and accountability in resource allocation for the benefit of vulnerable youth.

It is imperative to ensure that funds intended for the welfare of foster children are utilized judiciously in alignment with the organization’s mission, safeguarding the interests of both the beneficiaries and the taxpayers.

With unresolved questions surrounding MAC’s operations and financial transactions, it remains to be seen how the charity landscape navigates these complexities to uphold its core values of integrity and service towards the needy.

Contributed by Skylar Rispens, a dedicated reporter in Montana.

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San Diego Buzz Team August 13, 2024 August 13, 2024
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