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Domestic Violence Victims Question SafeNest’s Cash Flow: (Un)SafeNest Part 3

Domestic Violence Victims Question SafeNest’s Cash Flow: (Un)SafeNest Part 3

LAS VEGAS (KTNV) — Of all the domestic violence shelters and programs in Nevada, SafeNest receives the most financial support far. But some residents of the shelter believe money is misused.

13 Investigates shares the concern with more than a dozen victims survived who say SafeNest is not a safe haven. Previously, we shared the experiences of many women, which were described in detail dangerous and unsanitary living conditions at Nevada’s largest domestic violence shelter.

In the third part of our investigation, we follow the money.

Financial reports show that SafeNest received this year 3.6 million dollars in state and federal tax dollars. They receive millions more from taxpayer-funded grants, private fundraising and donations, but many residents say they aren’t getting the services or help they need.

“Coming to SafeNest was like a dream come true to help restart my life, go back to work, get a home and all the things they promised me,” says former client MJ. “In return, I have nothing. I mean nothing.”

“They treat us like we’re just here to fill a bed so they can get paid,” said April, another former SafeNest client.

In its most recent IRS return — covering the fiscal year ending in June 2023 — SafeNest total revenue was $10.7 million. That’s about $4 million more than last year.

Salaries of SafeNest executives

KTNV

SafeNest CEO Liz Ortenburger earns about $261,000, a 34% increase over 2022.

More than a third are salaries of SafeNest’s total costs. CEO Liz Ortenburger earns about $261,000, a 34% increase over 2022.

The chief operating officer earns about $133,000, a 25% increase over the previous year.

Salaries of SafeNest executives

KTNV

SafeNest’s chief operating officer earns about $133,000, up 25% from the previous year.

SafeNest’s expenses totaled $8.75 million for the year, so the company closed its books almost $2 million in profit.

Ortenburger tells me she’s proud of how the nonprofit manages its money, saying, “We haven’t had an audit in years.”

but 13 The investigation was revealed by the audit from the most recent IRS return indicating “deficiency in internal controls.” Auditors discovered a PayPal account in the organization’s name that was not included in the general ledger balances. The account was created without management approval — a violation of SafeNest policy.

In the report, the auditors identified an “increased risk of misappropriation/fraud.” an employee may create an unauthorized account and use it for personal gain. But the check did not take into account whether the money was actually taken.

Financial audit of SafeNest

KTNV

IRS auditors found an “increased risk of misappropriation/fraud” in SafeNest’s finances because an employee could have created an unauthorized account and used it for personal gain.

When I asked Ortenburger about the IRS records, she denied any financial wrongdoingciting strict federal oversight. She says every dollar spent counts, and more goes toward improving the shelter.

“We’re hoping that next year when we get the permits, we’ll be able to declutter the shelter, create more space in the rooms, all of those things are on the table,” Ortenburger said. “All this is happening thanks to the generous support of not only donors, but also the state and the district.”

Donor dollars come in part from two annual fundraising events.

IRS records show Run for Hope collected slightly less 23,000 USD — it all came back to SafeNest.

But that doesn’t apply to the organization’s main annual fundraiser, listed on IRS Form 990 as the “Spring Tea.” The entered event is displayed in the form 111,000 USD — but only $2,500which is only 2.25% — returned to SafeNest.

Everything else was spent on the event itselfincluding $29,000 for a room at the Four Seasons Hotel, $50,000 for food and entertainment and $30,000 for “other direct expenses,” including fees from an event planning company.

“Donors need to know that when they decide to come to an event or donate to us, that money will fill the gaps where there is no other funding,” Ortenburger said.

SafeNest Finances

KTNV

The IRS Form 990 for the SafeNest Spring Tea fundraiser shows that the event raised $111,000, but only $2,500, a mere 2.25%, returned to SafeNest.

In advertising its 2024 Pathways of Hope fundraising event, formerly known as the Spring Tea, SafeNest says that last year it provided 169,886 direct services to clientsincluding:

  • 24-hour hotline for crisis situations,
  • LVMPD Crisis Response Teams,
  • shelter and housing,
  • therapy sessions,
  • and much more.

Although all of these important services must be provided by the shelter, former SafeNest customers I have spoken with they say they felt worse when they left the shelter than when they got there.

“No one helped. They did nothing. They dug me a deeper hole than I was before,” says former SafeNest client Lauren.

Despite all the millions pouring into the shelter, the women we talked to say that there is often not enough foodtherefore, residents resort to stealing from each other. These concerns are documented in complaints filed with shelter staff.

in emails sent to 13 Investigates and sent to the management of the shelter, the clients complain about the rational food, the lack of hygiene and first aid, as well as the neglect of the buildings.

As for the services, April told me, “I didn’t get even the bare minimum of what they claim to provide or offer to someone who is a victim of domestic violence and fleeing a trafficker.”

In particular, – say the women we talked to they received very little counseling and no mental health assessments.

“SafeNest did not do any on-site consultation,” MJ said.

“I was hoping there would be someone there to talk to when you have a problem,” added former client Natasha.

I asked Ortenburger why women did not receive these services but she would not comment on individual cases citing privacy concerns.

SafeNest investigation

KTNV

Darcy Spears brings her concerns about SafeNest to shelter CEO Liz Ortenburger.

When asked about of the women’s claim that counseling is not offered on the spot, Ortenburger said, “In navigating this survival space, what I need right now and what I think I need right this second may not be available to you at this exact second.” .

As for other services, SafeNest also works help clients find affordable housingwhich Ortenburger says is their biggest request.

“And as you all know, housing is a bottleneck. So when we don’t have affordable housing, people tend to stay in the shelter longer. And the environment is disappointing,” Ortenburger said.

Another disappointment for shelter clients?

Such donations we saw piled up in sacks outside the head office.

Donate to SafeNest

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Recent IRS records have shown that a “significant amount” of SafeNest donations are being sold to private organizations at negotiated rates.

“On their website, as well as on Facebook, there are pictures of donated bicycles, suitcases. None of that is given to us at the shelter,” Lauren said. “We eat the same food all the time. Nothing fresh. You see cases where water is brought. They don’t even give us boxes of water. You see the washing powder being brought in, but the plumbing on the laundry is bad, so your clothes smell musty as soon as you wash them.”

MJ added: “We saw online that someone had donated, I think it was 1,000 pairs of tennis shoes. No one got tennis shoes. No one! I have been begging them for months to fit my daughter in her size. No. Nothing”.

So what’s going on with all this?

“Everything is checked to see if we need it, and then we stock Cora’s Boutique — that’s what our shelter boutique is called — with what we think is appropriate and what the customers have told us they’re looking for,” Ortenburger said. “And that boutique is open four times a week and as needed.”

Recent IRS records showed a “significant amount.” SafeNest donations are for sale to private organizations at agreed rates, p the money then goes to support programs and operations.

Audit shows SafeNest kept nearly $168,000 in donations for shelter clients and sold nearly $1.4 million. This means almost 90% sold. and is not distributed to customers.

As we continue to fight for what is right for the local victims whose stories we share, our next report will provide a sort of fact check.

SafeNest requires incoming residents to sign a protocol of rights and responsibilities. When this series continues next week, we’ll show you how the rhetoric is not true.