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Domestic violence survivors question SafeNest’s cash flow: (Un)SafeNest part 3

Domestic violence survivors question SafeNest’s cash flow: (Un)SafeNest part 3

LAS VEGAS (KTNV) – Of all the domestic violence shelters and programs in Nevada, SafeNest receives the most financial support far. But some shelter residents believe the money is not being used properly.

13 Investigates shares the concerns of over a dozen victim-survivors who say SafeNest is not a safe haven. I have previously shared the experiences of several women who detailed UNSAFE and insalubrious living conditions at Nevada’s largest domestic violence shelter.

In the third part of our investigation, we follow the money.

Financial records show it received SafeNest this year 3.6 million dollars in state and federal tax dollars. They receive other millions from taxpayer-funded grants, private fundraisers and donations — but many residents say they aren’t getting the services or help they need.

“Going to SafeNest was like a dream come true to help me get my life back on track, get back to work, get a house, all the things they promised me,” says former client MJ . “Instead, I have nothing there. I don’t want to say anything.”

“They treat us like we’re just there to fill a bed so they can get a paycheck,” said April, another former SafeNest client.

In its most recent IRS filing — which is for the fiscal year ending June 2023 — SafeNest total revenue was $10.7 million. That’s about $4 million more than the previous year.

Salaries of SafeNest directors

KTNV

SafeNest CEO Liz Ortenburger makes about $261,000 — a 34 percent increase from what she made in 2022.

Wages account for more than a third of SafeNest’s total expenses. CEO Liz Ortenburger makes about $261,000 — a 34 percent increase from what she earned in 2022.

The chief operating officer earns about $133,000, a 25 percent salary increase over the previous year.

Salaries of SafeNest directors

KTNV

SafeNest’s chief operating officer earns about $133,000, a 25 percent salary increase over the previous year.

In total, SafeNest’s expenses for the year were $8.75 million, so it closed the accounts nearly $2 million in the black.

he calls me Ortenburger she’s proud of how the nonprofit manages its money, saying, “We haven’t had an audit finding in years.”

But 13 Research found an audit from the most recent IRS filing that identified “a deficiency in internal control.” Auditors discovered a PayPal account held in the organization’s name that was not included in the general ledger balances. The account had been created without management approval — a violation of SafeNest policy.

In the report, auditors determined “an increased risk of misappropriation/fraud” as an employee could create an unauthorized account and use it for personal benefit. But the audit did not include whether the money was actually taken.

SafeNest financial audit

KTNV

IRS auditors found “an increased risk of misappropriation/fraud” in SafeNest’s finances because an employee could create an unauthorized account and use it for personal benefit.

When I asked Ortenburger about the IRS records, she denied any financial wrongdoingciting strict federal oversight. She says every past dollar is accounted for, with more earmarked for shelter improvements.

“It’s our hope next year, as we get the permits, we can declutter the shelter, create more space in the rooms — all of those things are on the table,” Ortenburger said. “All of these things happen because of the generous support of not only donors, but also the state and the county.”

Donor dollars come in part from two annual fundraising events.

IRS records show Run for Hope grew even lower $23,000 — all of which came back to SafeNest.

But that’s not the case for the organization’s main annual fundraiser, listed on IRS Form 990 as the “spring tea.” The form shows the fetched event $111,000 — but only $2,500which is only 2.25%—returned to SafeNest.

Everything else was spent on the event itselfincluding $29,000 for a room at the Four Seasons, $50,000 for food and entertainment and $30,000 for “other direct expenses,” including event planning company fees.

“What donors should know is that when they choose to come to an event or make a donation to us, that money will fill the gaps where other funds aren’t available,” Ortenburger said.

SafeNest Finance

KTNV

An IRS Form 990 for SafeNest’s “Spring Tea” fundraiser shows that the event brought in $111,000 — but only $2,500, or just 2.25 percent — went back to SafeNest.

In advertising for its 2024 “Pathways to Hope” fundraising event — which used to be called the Spring Tea — SafeNest says that last year it offered 169,886 direct services to customersinclusive:

  • a 24/7 crisis hotline,
  • LVMPD crisis response teams,
  • shelter and housing,
  • therapy sessions,
  • and many others.

While these are all important services that the shelter should provide, former SafeNest customers we spoke to they say they felt worse when they left the shelter than when they got there.

“No one helped me. They did nothing. They dug me a deeper hole than I was before,” says former SafeNest customer Lauren.

Despite all the millions coming into the shelter, those the women we spoke to tell us that food is often scarceso the residents resort to stealing from each other. These concerns are documented in complaints filed with shelter staff.

In emails shared with 13 Investigates and referred to shelter management, clients complain of food rationing, lack of hygiene and first aid products, and dilapidated structures.

As for the services, April told me, “I have not received even the bare minimum of what they claim they will or will provide to someone who is a victim of domestic violence and who is fleeing a trafficker.”

In particular, the women I spoke to say they received very little in the way of counseling and no mental health assessment.

“SafeNest did not have any counseling on site,” MJ said.

“I was hoping there would be someone there you could talk to when you had a problem,” added former customer Natasha.

I asked Ortenburger why women didn’t get those services but she did not comment in individual cases citing privacy concerns.

SafeNest investigation

KTNV

Darcy Spears brings concerns about SafeNest to the shelter’s CEO, Liz Ortenburger.

When asked about The women’s claim that counseling is not offered on-site, Ortenburger said, “Navigating that survival space, what I need right now and I think I need right this second might not be available to you in exactly that second”.

As for other services, SafeNest also works for help clients find affordable housingwhich Ortenburger says is their biggest request.

“And as you know — as everyone does — housing is in a bind. So when we don’t have accessible units, people tend to stay in shelter longer. And the environment is frustrating,” Ortenburger said.

Another frustration for shelter clients?

Donations, like these I saw them piled up in sacks outside the main office.

SafeNest Donations

KTNV

The most recent IRS records showed that a “substantial amount” of SafeNest donations are sold to private organizations at agreed rates.

“There are photos on their website, as well as on Facebook, showing donations of bikes, suitcases. Nothing is being given to us at the shelter,” Lauren said. “We eat the same food over and over. Nothing is fresh. You see cases of water being brought in. We don’t even get cases of water. You see laundry detergent being brought in, but the water line is bad in the laundry, so your clothes smell like mold once you wash them.”

MJ added: “I saw online that someone donated, I think it was 1,000 pairs of tennis shoes. Nobody got tennis shoes. Nobody! I asked them for months to get my daughter clothes in her size. Not. Nothing.”

So what’s up with all of this?

“Everything is checked to see if we need it, and then we outfit Cora’s Boutique — which is what our boutique is called at the shelter — with what we think is appropriate and what customers have told us they’re looking for,” Ortenburger said. “And that boutique is open four times a week and as needed.”

The most recent IRS records showed a “substantial amount” of SafeNest donations are sold private organizations at agreed rates, with the money goes then to support programs and operations.

The audit shows SafeNest kept nearly $168,000 in donated goods for shelter clients and sold nearly $1.4 million. That’s what it means almost 90% was sold and are not distributed to customers.

As we continue to fight for what is right for the local victim-survivors whose stories we have shared, our next report will provide some sort of fact check.

SafeNest requires incoming residents to sign a bill of rights and responsibilities. When this series continues next week, we break down how the rhetoric does not match the reality.