Project Angel Fouls Part 4

 An organization is organization. It’s supposed to make sense. 

Organizing a nonprofit (NP) and for-profit (FP) can be very similar. They both have a Board as their governance. They create mission statements (although this began in the nonprofit sector) and draft visions. Each one has an Executive Director/CEO, a financial advisor, and lawyers. The list can go on.

The difference between them is that the Board in a NP volunteer their time and resources. Nonprofits are not a pyramid. They do not make money to serve the head-although they can serve themselves just as much as a corporation. A NP mainly receives (sometimes internally makes) money to serve the needs of the community (uschamber). 

It is important to note though that a NP can have Board members who are also employees, although this is not highly favored due to the possible conflict of interest(s). Similar to it not being the best idea to post religious symbols in a public space at your business (which PAF hasn’t shied away from). If a NP does have employees on the Board, they are legally not allowed to vote on specific decisions-especially financial ones that impact themselves. This should be laid out clearly in the NP’s bylaws (governing procedures) that were constructed along with their specific tax filing.

Simple enough right? 

According to Project Angel Food’s website, it has twenty-one Board of Directors with three CEOs, nine executive staff (counting Richard Ayoub again), fifteen Board of Trustees, nine Ambassador Councils and according to Human Resources (HR), around ninety employees. Mr. Ayoub sits on the Board and is a CEO. Our supposedly “sister companies” (according to PAF’s  Dispatch Supervisor), Project Open Hand, Open Hand Atlanta , and Mama's Kitchen do not even do this. However, PAF’s Bylaws (available upon PAF request) allow this to happen with the stipulation one can not vote for being paid as a Board Member and that the pay is “just and reasonable.” Unfortunately, hearings from voters are not made public to see how this technically pays out, I mean plays out, for Ayoub.

A NP is made by the people, for the people; thus, should be the faces of those people. PAF does well in photographing its events and ambiance, but perhaps too well or... too Hollywood-the same accusation workers had with their first CEO. Ayoub and celebrities become our “new face” with the occasional picture of staff posted on social media. (Note: It wasn’t until a couple of months ago did we sign a release of our photos/names due to me addressing the issue.) We understand the image that “has to be presented” to make it in such a city, but when “saving face” becomes more important than those working their butts off the NP has lost its vision. Ayoub is not someone who takes criticism well, will hide what's going on, does not know his employees, and lacks general respectful people skills. PAF, according to one Dispatch manager, “is not what it used to be.” It may seem like it’s for the people but the money speaks differently.  

“Currently those with gross receipts exceeding $1,028,500 for any year” (Guide For Charities, pg. 39) are considered a big NP by the Attorney General Rob Bonita of California. Which is four million less than what it seemed to be in 2005 according to the Center of Nonprofit Management’s Southern California Nonprofit Sector Report (pg. 20) Some of the largest revenues seen in ‘2020 by nonprofits were Feeding America ($4.21 B), Salvation Army (5.79 B), and Goodwill (7.41 B)’ (Forbes). In CA. specifically, the top dollar NPs are Kaiser, Schwab, and Dignity Health; with the biggest hubs of nonprofit revenue coming in from Los Angeles & San Francisco (CauseIQ). 

PAF sits right in the epicenter. In 2020, PAF brought in $11M. In 2021, $13M. And in 2022, $12M. (PAF Financials). According to Nonprofit Explorer, in 2020 Ayoub made $205,000 with an “other” of $12,570. In 2021, $225,606 with an “other” of $13,117. And in 2022, $234,859 with an “other” of $39,001. Executive compensation has only been around 4% of the cost while other salaries and wages have been near 40%. Interesting how a NP leader can still get a significant raise even if revenues have declined, but those “below” get less of a raise because there was “no inflation” this year. (Truth is there was just less inflation (consumer price)). PAF proudly displays that “our driver starting wage went up from $17.50 in 2021 to $23 in Oct. 23…a 32% increase in two years, with the new starting wage being $21.25.” It is true that this is higher than LA’s minimum wage and for a single-person household, this is considered “livable” (LivingWageCalculator). 

What they don’t reveal are the workers working outside of their scope or “wearing too many hats” and not being compensated for it. It’s nice to just say everyone gets paid decently and easier to make people do more when it's for a great cause, but this is what causes burnout, tensions, and high turnovers. I know one coworker who was doing management duties for months alongside their original position and not being compensated. Countless times they told HR and Ayoub, “This is it, either I get a higher wage or find somebody else.” The leadership delegated over and over again; they even brought in a new manager to help fix things. This manager still allowed this coworker to do management duties without being compensated and depended on them to come in earlier than themselves. Then, surprisingly during the time we were under investigation (future blog post), this coworker finally got their raise. However, there is still another coworker I know who has gotten two titles due to new responsibilities and still hasn’t been compensated.

When an organization gets messy and in my opinion Project Angel Food has, it's time to re-evaluate and re-adjust. A nonprofit needs to make sense to the community because it operates differently internally (or at least it should). A nonprofit can not evaluate itself, it takes the community. How would you judge Project Angel Food? What has been your experience?  

Project Angel Fouls Part 2

Within my first year of working for Project Angel Food a coworker at my level proposed a new position where they would majorly be beneficial to the nonprofit. They had the resources, skill, and experience. I was so proud of them when their idea was accepted. Then so confused as to why not even two weeks into that new position they said they wished they never said anything.

Like this case PAF has proven many times that they are quick to jump on to great sounding ideas, especially if it comes cheaply (i.e not properly compensating the individuals).

One major donor wanted their logo seen on the products we deliver. The great sounding idea was to iron on hundreds of these patches onto the insulated bags we store the frozen meals in for delivery. The problem was that this material with a patch in the freezers for hours doesn't mix. Not only where there burnt marks on some of the totes from the volunteers doing this project but no where today can these patches be found.

I once dismissed PAFs fumbles saying, "Oh they're a young nonprofit... nonprofits are always like this... we have to be flexible." Truth is PAF has existed since 1989 when it was founded by author and spiritual leader Marianne Williamson. The podcast Maintenance Phase has already done enough background work on this past CEO that I'll kindly share the link here. What most people don't know is the article Scott Harris wrote on July 26, 1992 in the LA Times titled "Project Angel Food Rocked by Feuds" concerning her departure. Here's a hint to the current day employees-last year wasn't the first time PAF has tried to Unionize. Sick and tired of the management style, the previous employees agreed to not unionize if Marianne stepped down. My question is, when will we do this with Richard and Francisco?

Things are not what they seem on the surface. Behind those pictures and videos of employees working hard are very heartbroken individuals. 

Every meeting the same concerns seem to be raised; who's listening? 

I regret not recording meetings before (only recently have we installed a recording meeting room). I could have proven all the times we weren't heard... and lied to.

Don't take my word for it, research it yourself. The website alone will show you errors that you would think a high revenue place could do better on. For example the History timeline-the odd wording for year '97, the garden initiative that doesn't exist anymore, the mention of a past CEO (who stole money from them), the mention of Richard twice, the lack of mention of employee burst. This timeline is nothing compared to the fact that many employee's names and photos are used/posted/published for fundraising without their written consent.

PAF is not listed or rated (as of this date) on the BBB, Charity Watch, or GiveWell. Their last report on Charity Navigator and GuideStar was '21. Still proud of their two year old four stars, a Charity Navigator badge is posted on their website and fundraising booklets. One of our "competitors" Project Open Hand  still accurately holds their four stars, brought in $3,000 more with twenty more employees than us. (However, according to Indeed PAF definitely pays their employees more, the salary of both Richard Ayoub and Paul Hepfer are still sickening.) 

PAF needs more employees, better equipped and trained management; as well as safer equipment and a larger space. Ironically, for a place with high assets I don't feel they really count the costs. Upon my hire I was heavily warned about burnout since employees walk in and out like Amazon. To prevent this turnaround PAF promised to keep deliveries to 40 max per driver, an every 6 months peer review, frequent meetings, and better communication. I know drivers with over 50+ stops, I got my first review last month, most times workers are informed of meetings the day of, and then there's the problem with "too many cooks in the kitchen" (not literally). There has been at least a total of three times where police have been called to defuse (the jokes never stop here) employee retaliation. Of course the volunteers see an unruly individual, but as "insiders" we know the true story. Management doesn't know how to manage. Instead of giving warnings, they give final write ups. Instead of having conversations, they suspend you. Instead of firing you in the beginning of the day, they choose the middle. Instead of showing fairness, they show partiality. (I am not exempt from either sides of that coin.)

Does it make sense to you that a new manager be hired for a position they can't come in on time for because they live too far away?

Does it make sense to you that an employee who got fired for sexually assaulting an underage volunteer and other staff members got a severance pay?

Does it make sense to you that Richard is not only the CEO but sits as a head of the Board?

How about that fact that my purse was taken out a locker so that a volunteer could have it instead or that I drove a van several times now with no gas cover and no front licenses plate?

Or how about the fact that I was told I can't take a nap during my lunch break sitting on the corner of the only couch in the building? Or that after finding a fly in my food (that's served indoors) to just get another piece?

What about the fact that I had to ask three people for the copy of the Bylaws and was first told by an HR employee that they had never seen them? 

I encourage...no challenge you to look deeper. Look past the smoke and mirrors. And when you do you'll maybe understand why a union vote must pass next time!