Homeless Shelter owner with a million dollar income

Non-profit shelter owners have been doubling their income, similar and in some cases even more than their for-profit counterparts. Not only that, but they have also employed their family members in high-ranking positions raking in millions of dollars in income. 

Annabelle Alexander, a former resident of the Beach House, a shelter in Far Rockaway Queens said that shelters such as this receive a lot of money but the residents of such places never get to see or experience this money. The Beach House under the leadership of its president Jack Brown III has taken in more than $352 million since 2017 with his own individual compensation exceeding $1 million. The house also employees president Brown's mother, sister, niece, and brother, all with a 6 figure salary. Previous reports show that non-profit owners have paid themselves generously even as homelessness surges in the state. Owning non-profits is considered a charitable act that receives many concessions on the same ground, this has led to business owners using non-profits as a mask or front for other activities. Multiple shelter owners use the money given by the city for food, security, maintenance, etc, and channel them into for-profit organizations either owned by them or by a close relative. The only people left behind in this are the homeless, the state shows this money as being spent on the homeless while the owners of shelters acquire money for the same purpose but spend it elsewhere. Recently a Bronx landlord was caught laundering money into real estate on the pretext of running a non-profit. 

The owner of Beach House Brown works in tandem with the CORE Services Group which has paid millions to real estate owned by Brown. Brown also founded catering and maintenance companies that provided the food for the shelters all while getting reimbursed for the same, Alexander said that the food served was mouldy and uncooked and it made her sick. A 2012Times Investigative report found that after quitting his private job Brown won a federal contract of $29 million to start a rehabilitation centre but the services were rarely delivered. 

Source: The New York Times