A California human services charity has come under scrutiny after the Los Angeles Times reported that its longtime chief executive received more than $1.6 million in salary and vacation pay over a two-year period, far exceeding the compensation reported by leaders of comparable organizations. According to the newspaper’s investigation, 1736 Family Crisis Center CEO Carol Adelkoff received $907,923 in 2023 and $742,181 in 2024, with the organization explaining to The Times that much of the compensation reflected payouts for decades of unused vacation time. CharityWatch also reviewed the tax filings and notes that in addition to these amounts, Adelkoff received $77,629 in other compensation in 2023 and $73,842 in 2024.

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Uncapped Vacation Accrual

The organization told the Los Angeles Times that Adelkoff’s base salary has remained relatively consistent at approximately $405,000 annually and that the unusually high compensation resulted from paying out vacation time that had accrued over her 40-year tenure. The charity’s attorney stated that the board worked with legal counsel and financial experts to reduce the growing vacation liability, resulting in a vacation payout to Adelkoff before her retirement. The payout amounted to approximately $824,000 over two years, according to The Times.

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Nonprofit Experts Weigh In

Nonprofit experts interviewed by The Times noted that most nonprofits cap the amount of vacation time employees may accrue and questioned both the size of the payout and the organization’s decision to allow such a large liability to accumulate.

CharityWatch CEO, Laurie Styron, described the payout as “highly unusual.” “How was this decision made?” Styron asked.

The Los Angeles Times also reported that the organization’s board president has received compensation from the charity for many years despite serving as a board member. Regarding compensated board members, Styron told the newspaper that “The board’s No. 1 rule is to oversee the organization and it’s hard to do that if the decisions you make directly affect your pay.” Nonprofit board positions are typically unpaid.

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Leading a California Nonprofit from Hawaii

The Los Angeles Times reported that Adelkoff has maintained her primary residence in Hawaii for many years while leading 1736 Family Crisis Center, which is based in California. Property records reflect that Adelkoff owns a 3,700-square-foot four bedroom home on the Big Island, which she has claimed as her primary residence since at least 2015, according to The Times. Also according to The Times, Adelkoff and her then-husband acquired the property in 2002, the same year in which property records reflect that they sold a home in L.A. County.

The organization’s attorney told The Times that the board asked Adelkoff to remain as chief executive after she relocated, while Adelkoff declined to confirm her state of residence, citing security concerns.

Although technology has made remote leadership more feasible in many settings, a board of directors has a fiduciary duty to evaluate whether a chief executive living thousands of miles from the communities the organization serves is consistent with the charity’s operational needs and mission. Community-based nonprofits depend on strong relationships with staff, local partners, government agencies, donors, and the people they serve. Living in another state doesn’t automatically prevent someone from leading a nonprofit effectively, but it rightly prompts questions about how the board concluded that the arrangement best served the charity.

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