State Auditor Shad White released a report today detailing how he says taxpayer dollars were misused by several nonprofit organizations that received government grants through the Mississippi Department of Health (MSDH) and the Mississippi Department of Human Services (MSDHS).
According to the report, funds intended to support disadvantaged Mississippians were instead spent on inflated employee salaries, gift cards, gym memberships, and other questionable expenses.
“The state must stop handing taxpayer dollars to nonprofits with vague goals and then failing to monitor what these nonprofits do with it,” said White. “The government is wasting so much money.”
One example cited in the report involved MSDH awarding over $250,000 to the nonprofit My Brother’s Keeper (MBK) to combat diet-related diseases. Auditors found that more than half of the grant — 55 percent — went to MBK employee salaries and administrative costs. In addition, nearly $7,000 was reimbursed for “incentive” gift cards without documentation proving they were properly distributed, and almost $45,000 was spent on meal subscriptions, upscale grocery store gift cards, and gym memberships, again without adequate documentation.
Other nonprofits were also flagged. The group 100 Black Men of Jackson received $40,000 to address health disparities among African American youth, but spent $2,400 on gift cards, headphones, and speakers, along with nearly $2,000 on t-shirts — all expenditures deemed unbudgeted and lacking clear justification.
Meanwhile, the Juanita Sims Doty Foundation was awarded more than $2.4 million from the Department of Human Services through the Temporary Assistance for Needy Families (TANF) program. IRS records show the foundation’s executive director received a salary of $106,050 in 2022 and $118,447 in 2023. The foundation’s website highlights the director’s “Racial Equity Work,” which auditors noted was part of its guiding philosophy.
The findings of the audit are being referred to the Mississippi Attorney General’s Office for review.
Citizens are encouraged to report suspected fraud, waste, or abuse of taxpayer funds by emailing [email protected] or calling 1-800-321-1275.
