JACKSON, Miss. — Several Mississippi nonprofits used public money for questionable expenses such as gift cards, gym memberships, and inflated salaries, according to a report released Tuesday by State Auditor Shad White.
The audit examined grants issued by the Mississippi Department of Health and the Mississippi Department of Human Services. White said the findings highlight a need for tighter oversight of how taxpayer dollars are spent.
“The state must stop handing taxpayer dollars to nonprofits with vague goals and then failing to monitor what these nonprofits do with it,” White said.
Among the findings: one nonprofit tasked with reducing diet-related illnesses among disadvantaged Mississippians spent more than half of its grant on employee salaries and administrative costs. The audit also found nearly $7,000 in incentive gift cards and about $45,000 in food subscriptions, grocery store gift cards, and gym memberships reimbursed without sufficient documentation.
Other nonprofits cited in the report include:
100 Black Men of Jackson, which received $40,000 to address health disparities among African American youth. The audit noted $2,400 spent on gift cards, headphones and speakers, and nearly $2,000 on T-shirts — expenses not clearly tied to its stated mission.
The Juanita Sims Doty Foundation, which received more than $2.4 million in Temporary Assistance for Needy Families funds through DHS. IRS records show the nonprofit’s executive director was paid $106,050 in 2022 and $118,447 in 2023.
The report said its findings will be referred to the Mississippi Attorney General’s Office for review.
The auditor’s office encourages Mississippians to report suspected misuse of nonprofit funds by emailing [email protected] or calling 1-800-321-1275.
