Crisis Response: Claiming to Be Transparent Isn’t Enough

A Texas nonprofit faces renewed investigation after its initial response to a crisis didn’t match its public records. Authorities in December 2020 charged the nonprofit’s chief financial officer, Gerald Monroe, with the sexual assault of his grandniece. The organization, Texas Foster Care and Adoption Services, said it terminated Monroe the day after the arrest. Monroe’s grandniece later was killed in a car accident, and authorities dropped the charges against him.

According to Texas Public Radio (TPR), however, the nonprofit didn’t actually terminate Monroe’s services. There also is a dispute about whether the organization knew about the criminal charges before December 2020. Child Protective Services for the state investigated the claims and in June 2020 issued a “Reason to Believe” letter determining that the abuse more likely than not took place. CPS says it sent that letter to the nonprofit, but the nonprofit denies ever receiving it.

What is beyond dispute is that the nonprofit kept Monroe on its tax filings as a key employee after December 2020. On the organization’s 990 forms, the tax returns that by law are public record, the organization listed Monroe as the custodian of its financial records in November 2021. The forms also listed Monroe as one of two employees receiving a salary and did not list Karen Perez, the CEO, as receiving a salary or being involved in the organization at all. Her daughter-in-law, Sheila Perez, whom employees said was the executive director managing day-to-day operations, also was not listed on the tax return. These public documents support the claims of former and current employees that Monroe remained involved in the financial affairs of the organizations after it claims to have terminated him.

It’s impossible to know exactly what happened in this case as the charges and counter-charges swirl. What we can know is that the nonprofit‘s initial claims that Monroe was discharged don’t match the documents that they filed. The documents also don’t mesh with some of Ms. Perez‘s claims in her letter to foster families after TPR began its investigation.

The takeaway from this incident for youth organizations is that whatever you say has to be completely transparent and honest. You don’t have to tell everything that you know, but  you have to be completely accurate about the facts that you choose to disclose. If you claim to have terminated an employee, be sure that he or she is terminated everywhere, including all of the paperwork. If the employee is a key person and you need time to transition his or her responsibilities, then say that.  Also be sure that the employee’s continued access is limited, i.e., that person no longer has access to children or confidential information about your clients.

When your organization is facing charges that it is not fulfilling its core mission of protecting the children in its care, every detail matters. If you have never been through this type of ordeal before or you feel overwhelmed, get help from someone who has a track record. Many trade organizations have someone who can walk you through what to do next. We here at Taylor English also have helped many organizations with crisis response.  When your organization’s mission is at stake, you need to make certain that you don’t miss any details.