LA homeless nonprofits’ revenue soars 10,000-fold — yet homeless crisis worsens

Los Angeles is reeling under the weight of its homelessness crisis. Despite billions of dollars in public funds being poured in every year, the suffering on the streets has not eased—if anything, it has worsened. Recent IRS data released by the local outlet Westside Current lays bare the core of this troubling paradox.

Over the past eight years, total revenue for 30 major homeless service organizations in LA County has skyrocketed nearly 10,000-fold. Their combined income, which was just $12,000 in 2015, surged to $121.7 million in the 2023–2024 fiscal year. During the same period, however, the county’s homeless population ballooned from 44,359 to 75,518—an increase of about 70 percent.

In other words, even as funding exploded, the number of people living on the streets grew sharply. This is compelling evidence that the massive taxes paid by residents have fueled a bloated “homeless services industry,” rather than achieving the original goal of solving homelessness.

A closer look reveals even deeper problems. According to the IRS, the Weingart Center—a major nonprofit based in Skid Row—saw its annual revenue skyrocket from $8,000 eight years ago to $31.7 million. Other major groups, such as Hope the Mission and The People Concern, have also seen their finances expand exponentially.

Yet this financial windfall has not translated into better services or fewer homeless individuals. Instead, executive pay has soared to staggering levels. Weingart Center CEO Kevin Murray’s annual salary jumped 61 percent to $432,188. One organization even raised its CEO’s pay by 8 percent despite reporting a $5.2 million deficit.

The pattern is clear: the more public money that flows in, the larger the budgets and executive paychecks become—while the homeless themselves are left out in the cold. LA’s city and county leaders cannot escape blame for selling citizens the illusion of “solving homelessness,” only to enable nonprofits to profit along the way. Has homelessness relief become a money-making business?

The root of the problem lies in the lack of accountability and performance measurement. Despite hundreds of millions in public spending, there is no clear data showing how many people have actually left the streets or transitioned to stable housing. Both the city and service providers focus more on process than results, clinging to the slogan “We’re helping.”

LA’s homeless policies have repeatedly failed. Multibillion-dollar projects, such as Homekey and Measure HHH, have faced delays, cost overruns, and mismanagement. The explosive growth in nonprofit budgets is merely the latest manifestation of the same underlying issue. As the system grows, so does waste—and accountability fades.

City and county authorities must launch a fundamental overhaul. First, performance metrics must be mandatory. Each organization should be required to publicly disclose measurable results such as the number of people housed, self-sufficiency rates, and relapse into homelessness. The government must also tighten oversight to ensure that a fixed percentage of funds goes directly to frontline services. Groups that fail to meet benchmarks should see their budgets cut and their funds redirected to organizations producing real results.

The homelessness crisis is complex. It is driven by a web of structural issues—housing shortages, low wages, mental illness, and addiction. Helping those trapped in this cycle is a moral obligation, and the work of service organizations remains essential.

But the current picture is alarming. Bigger budgets and larger organizations do not automatically solve homelessness. It is time for both nonprofits and government agencies to be judged not by how much they spend, but by how effectively they spend it.

If taxpayer-funded homeless programs fail to deliver real outcomes, they cease to be welfare—they become waste.

By Koohyun Chung [chung.koohyun@koreadaily.com]