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March 30, 2017; AL.com

When the Wall Street Journal reported about the 2,700 nonprofit executives who received more than $1 million in compensation in 2014, the list included an Alabama daycare provider with a total budget under $2 million, most of it provided through federal child nutrition and state child care subsidy programs.

Jesse Thomas, the director of United Family Services Outreach (UFSO), received almost $1.3 million in “other reportable compensation,” but no base compensation or fringe benefits, according to the organization’s 2015 Form 990. But this is just the beginning of the questions: “Two attorneys who represent nonprofits who said United Family Services Outreach’s financial forms filed with the IRS, or Form 990s, were poorly filled out with several important pieces of information missing.”

Among the information provided is a classification of the nonprofit’s payment to Thomas not as income but as a payment to “Jesse Thomas Sunnyside Childcare” for contract services. In addition, UFSO’s 990 reported that several Thomas family members received contract service payments ranging from $1,500 to $15,000 in 2014. Notably, all of the organization’s five board members are related to Jesse Thomas.

United Family