Los Angeles nonprofit spending faces scrutiny over public funds

Investigations into the use of public funds in Los Angeles have highlighted financial irregularities within two different nonprofit sectors.

The Center Square Foundation released findings regarding LA Opera, noting the organization received $27 million in government grants over the last decade. Audited statements show the nonprofit received $2.45 million in taxpayer-funded grants in the most recent fiscal year. The investigation highlighted significant executive compensation, including over $33 million spent on executives and a contract with a production company that resulted in approximately $7.28 million in compensation for Music Director James Conlon. President and CEO Christopher Koelsch reported total compensation of just over $1 million for the fiscal year ending June 2025.

Separately, the Los Angeles Homeless Services Authority (LAHSA) faced scrutiny for approving $3.5 million in 2024 contracts for Abundant Blessings, a nonprofit previously flagged as ‘high-risk’ by its own compliance team. Prosecutors allege that Alex Soofer, who led the nonprofit, diverted at least $10 million intended for homelessness services to fund personal luxuries, including a $7 million house, a Range Rover, and private jet trips. Soofer has pleaded not guilty to fraud charges. Federal auditors noted that the agency delayed notifying federal funders of potential crimes for approximately eight months.