Manzanita Outreach issued a statement on Monday, Nov. 25, that staff had “uncovered possible financial mismanagement” within the food assistance nonprofit and subsequently confirmed that it has filed a complaint with law enforcement.
We are taking decisive actions to address this matter, including actively conducting a thorough investigation and pursuing appropriate measures of accountability,” Manzanita staff wrote in an email announcement. “We recognize that we may not have all the answers to your questions at this time.”
The email directed questions to Manzanita Outreach Board Chairman David Stabenfeldt and interim Executive Director and Grants Manager Kate Morrill.
“I am no longer employed with Manzanita,” Benjamin Dean Burke said on Monday, Dec. 2. Burke served as Manzanita’s executive director beginning in May 2018. “I am very grateful to have had the opportunity to work with such a great group of people, and I know that the board and staff will be able to manage through the current challenges to make Manzanita better than ever.”
Manzanita’s filings with the Arizona Corporation Commission indicate that Burke left the organization at the start of November. The annual report that Manzanita filed with the ACC on Oct. 24 listed Burke as the CEO, Stabenfeldt as the chairman of the board and Amy Brown, Grace Scheid, Jennifer Griffin and Stan Goligoski as the organization’s directors.
According to articles of amendment filed with the ACC on Nov. 13, the board voted on Nov. 2 to remove Burke as Manzanita’s statutory agent and to name Stabenfeldt the statutory agent and sole principal.
“While we cannot comment on individual personnel matters due to confidentiality, we can assure you that all changes have been made with the intent of reinforcing the organization’s immediate needs and long-term stability,” Morrill stated.
Morrill said that the potential financial mismanagement came to Manzanita’s attention in October, after which the nonprofit consulted expert advisors and retained legal counsel.
“Like the community we serve, Manzanita Outreach is a victim in this situation, and we are working diligently to uncover the full scope, timeline and impact of the financial mismanagement,” Morrill said in her statement. “[The Arizona Community Foundation] and United Way of Yavapai County have both pointed us in the direction of resources and assistance to not only overcome our current challenges but to ensure that we implement best practices and high standards of accountability.”
Manzanita’s 2023 annual report indicated that the organization received a total of $1.1 million in income during 2023, consisting of $429,934 in foundation grants, $354,629 in federal, state and municipal funding, $340,458 in individual contributions and $5,940 in other unspecified income.
In-kind donations of $7.2 million accounted for the largest portion of Manzanita’s non-cash revenue, which consisted of $6.8 million in food donations, $396,842 in volunteer hours, $31,823 in book donations, $6,338 in school supplies donations and $3,750 in other goods and supplies.
“As we move forward, the integrity of our mission remains central to our work,” Morrill said in her statement. “This is a vital time of year for food assistance services, and we are committed to continuing all of our programs and outreach with the incredible support of our dedicated volunteers, staff and partners. Together, we will ensure that no one in our community is without access to nutritious food during the holiday season and colder months.”
