Charities Seek Bankruptcy Protection
The reasons for Glass’s financial woes are similar to those causing other nonprofits to go bankrupt. Ms. DeCrescenzo said the state of California, which accounts for almost 70 percent of the organization’s revenues, had not raised the rates it pays for services in nine years, while expenses had increased.
Aggravating those problems was a decision Glass made some time ago to allow only six beds in its group homes.
“We have held out for more than a decade against moving to a group home model with 12 beds or more because we thought smaller homes create a family environment that was better for the kids,” Ms. DeCrescenzo said. “That was a mistake.”
American Express has been calling her repeatedly, she said, seeking payment of $100,000 that has been charged to the corporate credit card for hotel rooms for teenagers who had aged out of group homes; the company is also threatening to seek a lien against Ms. DeCrescenzo’s house.
The I.R.S. also wants her house because Glass has failed to pay its payroll taxes.
“The one thing I have is my home,” Ms. DeCrescenzo said, “and now I lay awake at night thinking someone is going to take it away from me.”