Cash Strapped Loma Linda Looks for Way To Help Struggling Charity

To help its communities, Inland Temporary Housing needs federal and state grants. But to get those federal and state grants, the nonprofit organization needs an audited financial statement.

This is a major problem for the group, said Kerry Heinrich, a board member with the nonprofit. The group has no money for the audit, he told the Loma Linda City Council at a recent meeting.

In fact, there is little money for any administrative duties. Bills appear to be stacking up. But there is no telling how bad the group's deficit is because they have no money to do an audit of the nonprofit’s finances.

On May 24, Heinrich appealed to Loma Linda for $5,000 to $6,000  so the organization can pay for a 2010 audit. That amount would be in addition to $10,000 the city contributed in February as part of a public service donation,

He proposed using community development block grant funds that would be available July 1. Heinrich said he would report the findings of the audit as soon as it was done.

At the end of the pitch, councilmembers directed City Manager T. Jarb Thaipejr to check if any of the community development block grants could be used for the audit.

Once completed, the audit could bring more bad news, Heinrich said honestly.

A 2009 audit showed that they were upside down by $200,000, he said.

“I don’t know what 2010 will show,” Heinrich said.

The audit is needed not only for grant applications, but also to know where the organization stands now, Heinrich said. A disruption in services could impact several families.

Inland Temporary Homes offers a 90-day shelter program and 21- to 24-months of transitional housing for homeless families with children under 18. It was founded in 1991 by Carolyn Hamilton and was based in an old farmhouse surrounded by orange trees in Loma Linda.

It also now serves the cities of San Bernardino and Redlands. Heinrich said he would also reach out to those communities for help.

And with California’s economy still sluggish, it’s essential the organization stay afloat, he said. But Heinrich admitted his pitch was less than persuasive.

“We have a budget of about $1.4 million, with the lion share coming from state or federal funding,” Heinrich said. “Less than 1 percent can be used for administration.”

“My view was we first had to get our financial statements in order so that we would have a clear idea of where we stood at the close of 2010 and at least the first quarter of 2011,” he said. “Candidly, I don’t know that it’s financially viable. But I won’t be able to answer that until we actually have financial information.”

Heinrich did not have any budget that showed how funds were being spent. He told the council that he had joined the board only weeks before and was still trying to chase down answers to the questions. But things appeared to be challenging to put it mildly.

Leanne Drieberg, executive director of Inland Temporary Homes, who is leaving as soon as June, has cut her already modest pay to help cover some of the administrative costs.

Loma Linda is deeply invested in the organization. They invested $400,000 in 2009 to help relocate Inland Temporary Home to the city and entered into a covenant that essentially reserves four apartment units for their use on Poplar Street. The agreement is a 55-year covenant, said Pamela Byrnes-O'Camb, the city clerk.

Mayor Rhodes Rigsby said for him, it went deeper than money. The organization helps families with young children, not just individuals from the area.

“So they are actually our neighbors,” Rigsby said. “They are not just people coming in from cold states during the winter time and lingering in sunny Southern California. And we’re not just attracting an endless supply of itinerant homeless. With Inland Temporary Home services, we’re actually providing service for people who live in the area. To me, that’s a little bit more compelling.”

“Some towns create massive homeless shelters and draw people from other communities and that relieves other communities of their responsibilities,” he added.