An investigation by Jared Strong of The Center Square raises serious questions about nepotism, executive compensation, and financial transparency at Build Wealth MN, a Minneapolis nonprofit that has received millions of dollars in state funding.

According to The Center Square’s investigation, Build Wealth MN paid its founder and executive director, David McGee, and six of his relatives a total of approximately $950,000 in 2024. McGee alone received more than $500,000. The organization has received substantial taxpayer funding to support programs intended to help underserved communities build financial stability and achieve homeownership.

CharityWatch CEO, Laurie Styron, expressed concern about the concentration of paid positions within the founder’s family and whether the nonprofit’s board is exercising adequate independent oversight.

“That’s not just a red flag — that’s a parade of red flags,” said Laurie Styron, executive director of CharityWatch, a prominent nonprofit watchdog. “When a charity’s payroll starts looking like a family reunion, donors and taxpayers have every reason to ask if the charity’s management and board members are making decisions that are in the charity’s best interests.”

Styron also questioned the explanation for McGee’s unusually high compensation, which he attributed in part to deferred payments related to loans he had closed in prior years. She described the arrangement as “highly, highly unusual” and said failing to disclose deferred compensation in the years it accrues “leaves the public at a disadvantage when judging whether or not executive compensation levels are appropriate in the context of the charity’s overall financial situation.”

The employment of multiple family members in senior positions raises additional questions about whether hiring decisions were made through competitive processes.

“It’s difficult to believe that, in a competitive labor market, five of the executive director’s family members just happened to be the most qualified candidates for multiple separate positions,” said Styron, of CharityWatch. “That’s an extraordinary coincidence, and one that deserves far more explanation than simply asserting that these individuals perform legitimate work.”

While employing family members is not inherently prohibited, a nonprofit’s board has a responsibility to maintain and enforce a strong conflict-of-interest policy that safeguards hiring decisions against nepotism, ensures compensation is reasonable, and protects the organization’s charitable resources. These safeguards are especially important when taxpayer dollars are involved, as the public has a right to expect independent oversight and accountability for how such funds are spent.

Read the full investigation by Jared Strong at The Center Square for additional details about Build Wealth MN’s executive compensation, family employment arrangements, financial disclosures, and state funding.

---

Will You Help CharityWatch Continue Our Important Work?

As the only independent charity watchdog organization in the United States, CharityWatch relies on your support to fund our in-depth research and analysis in order to bring you the unbiased charity ratings and other information you rely on to help you make more informed giving decisions. We are not directly or indirectly funded by nonprofit industry interests.

We hope you will consider making a donation today so that we can continue to speak openly and critically and call out wrongdoing when we see it without concern for special interests cutting our funding. CharityWatch is a small organization and your donations are noticed, needed, and greatly appreciated. Thank you for giving wisely!