Business
Controversial Charity Tackles Allegations with New Reforms
Operators of the Tucson-based Cross Country Outreach charity continue to face scrutiny despite efforts to comply with regulations. Recent changes include acquiring workers’ compensation insurance and licensing to distribute donated food.
The organization, succeeding the now-closed Giving Tree, has faced criticism for compelling homeless clients to work without pay. Libby Wright, Cross Country Outreach’s director, stated that these efforts aim to meet a pressing need in the community, highlighting an ongoing deficit in shelter availability.
Wright’s former nonprofit, The Giving Tree, closed in 2012 after multiple rule violations were uncovered. Cross Country Outreach, established in 2013, has faced similar allegations. Recent improvements include ceasing the requirement for clients to contribute food stamps to communal meals and reducing shelter overcrowding.
Investigations revealed that homeless clients working in the organization’s thrift store were classified as employees, necessitating workers’ compensation. This determination followed complaints that clients were effectively paid below minimum wage through room and board arrangements.
While some view Wright’s practices as exploitative, she maintains that clients work voluntarily. However, other nonprofit leaders in Tucson remain skeptical and refrain from referring clients to Cross Country Outreach.
Financially, Cross Country Outreach experienced a significant reduction in donations and revenue compared to The Giving Tree. The nonprofit’s tax-exempt status was reinstated after a temporary lapse due to filing issues with the IRS.
Compliance with city zoning codes remains a challenge. Overcrowding and bed bug infestations have been recurring issues at the shelters. Wright asserts the organization regularly addresses and inspects these concerns despite complaints from former residents.
The nonprofit’s board saw new additions after facing criticism for lacking independent oversight. Yet, the new board members appear disconnected from daily operations, raising further questions about the charity’s management.
Despite the controversy, some argue that Cross Country Outreach provides valuable support to Tucson’s homeless population. The debate continues on whether the benefits outweigh the operational shortcomings.
Michelle Jaquette is a University of Arizona journalism student and an apprentice at the Star.
