JACKSON, Miss. – A report released Monday by Mississippi State Auditor Shad White reveals that several nonprofit organizations receiving state grants used public funds on expenses that may not align with their intended purposes.
The audit focused on grants distributed by the Mississippi Department of Health (MSDH) and the Mississippi Department of Human Services (MSDHS). It found that some nonprofits spent significant portions of their funding on administrative costs, employee compensation, and items such as gift cards and gym memberships.
One of the organizations named in the report is My Brother’s Keeper (MBK), which received over $250,000 from MSDH to support efforts aimed at reducing diet-related illnesses among underserved communities. According to the audit:
- More than half of the grant funds were used for salaries and administrative expenses.
- Nearly $7,000 was reimbursed for gift cards labeled as incentives, but there was no documentation verifying how they were distributed.
- An additional $45,000 was spent on meal subscriptions, grocery store gift cards, and gym memberships, with no clear evidence that these were appropriate or effective uses of the funds.
Other nonprofits were also cited. The organization 100 Black Men of Jackson received $40,000 to address health disparities among African American youth. The audit found that the group spent $2,400 on gift cards, headphones, and speakers, and nearly $2,000 on t-shirts. These purchases were not included in the original budget and lacked documentation showing their relevance to the program’s goals.
The Juanita Sims Doty Foundation received more than $2.4 million from MSDHS through the Temporary Assistance for Needy Families (TANF) program. IRS filings according to the Auditor’s office show the foundation’s executive director received $106,050 in 2022 and $118,447 in 2023. The foundation’s website outlines its racial equity work, which is based on the belief that historical inequities limit meaningful choices for people of color.
Auditor White emphasized the need for stronger oversight of how public funds are distributed and monitored. “The state must stop handing taxpayer dollars to nonprofits with vague goals and then failing to monitor what these nonprofits do with it,” he said.
The findings have been forwarded to the Mississippi Attorney General’s Office for further review.
Residents who wish to report suspected misuse of public funds by nonprofits can contact the Office of the State Auditor by emailing nonprofitwaste@osa.ms.gov or calling 1 800 321 1275.