On Thursday, American Greatness posted an article about the William Law Foundation, a nonprofit that claimed to have over 40 locations but actually operates only one facility.
The article reports:
An investigation by The Center Square revealed that the William Law Foundation secured the massive award through the California Department of Social Services (CDSS) General Child Care and Development Program grants.
The allocation was intended to fund care for more than 1,000 children across 10 counties but the nonprofit has only its Bakersfield facility which provides care for no more than six children.
Executive Director William Edwards told the Center Square earlier this month, “It’s been a slow start,” more than three years after his nonprofit was awarded $18,216,131 in taxpayer funds.
According to The Center Square, state records confirm the organization received roughly $2.2 million in upfront startup cash, during which time financial records show substantial executive compensation was paid out before any children were actively being served.
Tax returns from 2024 show Edwards was the only employee of the the William Law Foundation and that he paid himself at least $540,000 with $180,000 in deferred compensation.
Tthe nonprofit’s only revenue stream that year was $1,051,434 in government grants.
Edwards blamed the nonprofit’s slow growth on lack of training and his difficulty in navigating cumbersome California regulations. He has acknowledged the $2.2 million in startup costs were “for the process of developing sites throughout the state.”
This does not sound like a workable business plan!
The article concludes:
The CDSS has not yet explained how the organization qualified for the largest proposed award of that grant cycle despite having zero prior experience running childcare programs.
The controversy has come forward amid the federal crackdown on California “ghost daycares,” including separate federal fraud charges involving millions in stolen childcare subsidies.
I truly believe we could balance the federal budget if we got rid of the fraud.