A fiscal sponsor returns $7.6 million in Prince George's County grant money as audits are sought

The Edward Charles Foundation, a California fiscal sponsor, has returned $7,635,000 in grant money to Prince George's County, Maryland, County Executive Aisha Braveboy announced on Thursday, October 22, WJLA reported.

How much was returned, and how much is still owed?

About 60% has come back, and the county says the rest will follow. Braveboy's statement says about $12.8 million was directed by the County Council to the foundation between fiscal years 2024 and 2026, and that "the remaining funds will be returned after the accounts are reconciled," which the county expects in the coming days. A foundation spokesperson told The Banner earlier that "the final figure is being reconciled" with the county's finance office.

Much of the money was meant for Community on the Frontline (COTF), a nonprofit that uses the Beverly Hills-based foundation as its fiscal sponsor. Outlets put COTF's awards at slightly different totals: more than $8.5 million, according to WJLA, and $8.6 million, according to NBC Washington and The Banner. WJLA reported that the county paid the foundation $925,000 in January and $7,635,000 in June. The Banner, citing the County Council, reported that nearly $764,000 had been spent and about $7.8 million remained with the foundation or another organization.

Why are officials asking questions?

Because of a personal tie. NBC Washington reported on October 1 that the council had awarded millions to COTF, which is run by Janna Parker, whom Council Chair Krystal Oriadha has called her "best friend" on social media. Oriadha has denied wrongdoing. "I picked Community on the Frontline not because of the relationship, but because of the structure of the organization," she said, as quoted by WJLA. She told The Banner that "the selection of that particular foundation was not my decision." Parker did not respond to requests for comment from either outlet.

Council members Sydney Harrison and Jolene Ivey called on October 12 for independent audits of COTF and another nonprofit, Joan's House, NBC Washington reported. The next day Braveboy and Oriadha asked the foundation to return the money, and Braveboy asked the county auditor to investigate how the funds were used and what fees the foundation charged. WJLA reported that the county attorney served subpoenas on COTF and on the county itself; Oriadha's office said a preservation subpoena went to the Office of Grants and that no council employees were served. No audit or investigation has reported findings.

What should funders ask of a fiscal sponsor?

A fiscal sponsor is an established charity that lends its tax-exempt status and back-office services to a project, usually for a percentage fee. The foundation's spokesperson declined to tell The Banner whether the sponsorship terms included fees. We explain the model in consider a fiscal sponsor and track the oversight debate in fiscal sponsors face new scrutiny.

In our view, public money passed through a sponsor needs the same written terms as any other grant: what it pays for, what fees are taken, who approves spending and when unspent funds come back. Funders, public or private, can ask for those terms before a check is cut, and boards of sponsored projects can ask to see the sponsorship agreement.