Meals on Wheels faces financial turmoil as executive director departs

Evanston RoundTable, Sept. 20,2024

Evanston-based nonprofit Meals on Wheels Northeastern Illinois is facing a severe financial crisis, and the meal delivery organization’s longtime leader has left under a cloud, multiple sources, all insisting on anonymity, have told the RoundTable.

One volunteer at Meals on Wheels emailed the RoundTable that Executive Director Deborah Mack “resigned (or was let go) due to financial mismanagement” and a second volunteer described the agency’s financial situation as “a total mess.”

The second volunteer said there have been signs of “serious mismanagement” regarding financial and personnel issues in a “very hostile work environment” that could jeopardize the viability of the organization, which last year delivered almost 250,000 meals to 860 clients with the help of 11 full-time staff and some 800 volunteers.

Multiple phone calls and texts to a number listed as Mack’s cellphone, as well as Facebook messenger queries, have gone unreturned as of press time.

Notwithstanding the agency’s challenges, no interruptions in food delivery to clients is anticipated, said Spencer Harstead, MOWNEI program director. Added board member Steve Johnson, “We’re working hard, it’s all hands on deck, to make sure there are no interruptions in service deliveries whatsoever.”

The first volunteer said at least one food purveyor refused to deliver to the facility kitchen at 1723 Simpson St. “because their bill hadn’t been paid.”

That food purveyor, Gordon Food Service, confirmed Wednesday that the organization’s “credit line got turned off” recently. According to the store manager at GFS’ Niles store, food would only be delivered “if they prepaid.”

A third volunteer added that, “Sadly, the prior leadership did not excel in people skills and many of the disgruntled employees had nowhere to go to offer their feedback and observations. Thus the sudden departure [of Mack] and frequent turnover of staff.”

A fourth person, a former employee, corroborated the three volunteers’ assertions of mismanagement. “It’s completely true. The board interviewed every single member of the staff about financial improprieties shortly before Deborah resigned from the organization” in an effort to determine the seriousness of the situation, the ex-employee said.

All four sources insisted on anonymity as they are still closely associated with the organization.

Board response

In a Wednesday phone call, Johnson, a former MOWNEI board president, said the staff interviews were part of a regular review of top management. Johnson said the board “knew changes needed to be made with respect to getting the best leadership in place.”

Michael Brody, current president of the Meals on Wheels board, provided the RoundTable with the following statement:

“With the departure of Deborah Mack as Executive Director, the Board of Meals on Wheels of Northeastern Illinois is working closely with the staff and volunteers to assess the current condition of the organization. In addition, the Board of Directors is working to engage an interim executive director. That person will have oversight over daily operations and ensure our team has the necessary support to continue our mission. For over 55 years, Meals on Wheels NEI has provided nourishment and support services to the home bound and elderly in our community. This organization is critically important to Evanston, the many people it feeds, our donors and dedicated volunteers. It is critical that the organization survive and thrive on a strong financial footing. It is the board’s goal to accomplish these important objectives.”

In a phone call Tuesday afternoon after the statement was delivered, Brody added, “The board is doing everything it possibly can to maintain the strength of this organization, which we recognize as vitally important. Beyond that I can’t be more specific at this time.”

Challenging issues

The Meals on Wheels Simpson Street site serves clients from Evanston north to the Wisconsin border, west to the western end of Lake County, and as far south as Burbank and Stickney. A July RoundTable article about the organization quoted Mack as saying that “We’re committed to being the premier provider of homebound older adult nourishment and support services in this entire region.”

But the article also quoted Mack as saying that financial issues were a challenge. “We just can’t afford to subsidize anymore, we have to increase our donations,” she said. “Some 90% of our clients are on subsidies. We don’t have the money to meet the demand, which is why private donations are crucial. Nobody should have to go hungry.”

A review of Meals on Wheels’ most recent filings of IRS Form 990 for not-for-profit organizations indicates widening deficits over the previous three years, with expenses exceeding revenue by $37,861 in the year ending June 30, 2021, followed by shortfalls of $90,278 in 2022 and $115,418 in 2023.

A certified public accountant who looked at the Form 990 on behalf of the RoundTable said it’s “not surprising” expenses were rising amid “out-of-control” inflationary food costs nationwide in the last few years, plus stepped-up operations at the Simpson Street site.

Organization seeks interim leader

On Sept. 14, a Meals on Wheels news release said: “The Meals on Wheels Northeastern Illinois Board of Directors this week announced Executive Director Deborah Mack is leaving the organization. The entire Board thanks Deborah for her 10 years of service to Meals on Wheels NEI and the many communities served between Chicago and the Wisconsin border.

“The organization is currently leaning on the expertise of the staff as we look for an interim executive director. Organization leaders like Program Manager Spencer Harstead and Food Service Director Sam Landman are working closely with the Board to ensure the mission of bringing nutrition and companionship to the elderly and homebound is not affected. Of course, that means our life-blood – our volunteers – also continue their vital role.

“The Board will offer an on-site townhall in the coming weeks with an online component. Please know we are working quickly to identify our next executive director. It is imperative we maintain the trust that your donations – be it time, dollars or both – will continue to fuel our growth trajectory across all our services.

“These autumn months are traditionally stressful on the operations, but this fall is proving more difficult than recent years. Any extra donations would be incredibly welcomed. Please visit https://mealsonwheelsnei.org/donate.”

The former Meals on Wheels employee quoted above strongly seconded the plea for donations. “Meals on Wheels has an incredibly important mission throughout northern Illinois, supporting hundreds of people, including the elderly, blind, indigent, disabled and others who are unable to cook for themselves,” she said.

Editor’s note: The story has been updated to add assurances from MOWNEI that there have been no interruptions of regular meal service deliveries top clients.