Audit finds nonprofits misused Mississippi taxpayer funds

JACKSON, Miss. — Mississippi State Auditor Shad White released a report Monday detailing how taxpayer dollars were misspent by nonprofit organizations receiving government grants from the Mississippi Department of Health (MSDH) and the Mississippi Department of Human Services (MDHS).

The audit revealed questionable spending on inflated salaries, gift cards, gym memberships, and other nonessential expenses instead of direct services to Mississippians.

“The state must stop handing taxpayer dollars to nonprofits with vague goals and then failing to monitor what these nonprofits do with it,” White said. “The government is wasting so much money.”

My Brother’s Keeper audit findings

The Department of Health allocated more than $250,000 to the nonprofit My Brother’s Keeper (MBK) to reduce diet-related diseases among disadvantaged Mississippians. The auditor’s office reported that:

55% of the subgrant was spent on MBK employee salaries and administration instead of direct services.

Nearly $7,000 in incentive gift cards lacked documentation on how or whether they were distributed.

Almost $45,000 was spent on meal subscriptions, upscale grocery store gift cards, and gym memberships without proof of appropriate use.

Other nonprofits flagged

The audit also cited questionable expenses at other organizations:

100 Black Men of Jackson spent $2,400 on gift cards, headphones, speakers, and nearly $2,000 on T-shirts. The state auditor said those costs were unbudgeted and poorly documented.

The Juanita Sims Doty Foundation received more than $2.4 million from MDHS through the Temporary Assistance for Needy Families (TANF) program. IRS filings show its executive director was paid $106,050 in 2022 and $118,447 in 2023. The foundation highlights “racial equity work” on its website as a key focus of its programs.

Next steps

The findings will be forwarded to the Mississippi Attorney General’s Office for review.

White urged residents to report suspected fraud, waste, or abuse involving nonprofits by emailing nonprofitwaste@osa.ms.gov or calling 1-800-321-1275.