The last we heard from Dominique Morgan, she was about to head to jail. The former executive director of the Okra Project had pled guilty to mishandling upwards of $100K from mutual aid funds meant for systems-involved Black trans woman. While Morgan could have faced over a decade in prison for the original charges, it seems that she was released from Rikers following a 30-day stint, receiving probation instead. Mere days after leaving jail, Morgan appeared on the YouTube show FQCrazySexyCool to give an unvarnished two-hour interview that left no stone unturned–and no part of the nonprofit industry unchallenged.
Not being a Black trans woman, I’m not going to stick my nose in the interpersonal dimensions between Morgan and other big names (Indya Moore in particular). Instead I want to focus on what the interview revealed about nonprofit practices–especially fiscally sponsored programs. If you think this story is just about one particular nonprofit, or simply drama run amok, I’d say you should think otherwise. Tune in and listen to the whole interview.
I’m going to put this point blank: if your fiscally sponsored program is running into this many alleged problems–missing funds, untraceable money flow, 1099s for obvious W2 positions–you should not be in the business of being a fiscal sponsor, especially if you are taking a fee for service as high as Morgan claimed. Fiscal sponsorship can often be a high-wire act; you’re enabling a project to tap into the world of philanthropy while having your own organization’s name, reputation, and legal standing on the line. Working with very vulnerable populations also means that you have to balance keeping a light trace with enough proof of above-board practices: the numbers have to line up, even if all you’re retaining are the numbers. Autonomy and trust also has be built off of vouch-safes and ways to trace behavior. Frankly it’s the same practices any nonprofit would consider, but with the added issue of being the legal entity.
(again, all of this is ALLEGED because I’m also not a lawyer, just a middle-aged woman in nonprofits)
Morgan is clearly brilliant at having a vision and bringing supporters with resources to the table. That much is true, and that much is in the public record. Every project should be so lucky to have someone who can get big checks while having a clear theory of change. But it seems like the fiscal sponsor never really thought through what it means to build accounting and cross-check systems to ensure everybody has the same math at all times. That’s a shame. Fiscal sponsorship is already under fire at the federal level, and every fiscal sponsor really needs to make sure they are never in a spot where it’s a matter of she said / she said.
Again, worth your time, and worth your thoughts.
Your Nonprofit Sucks 
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