Several local nonprofits that provided volunteers to run concession stands at the U.S. Open in June have accused a catering contractor of misleading them after receiving far less for their services than they expected.
The nonprofits say they hustled for months to line up thousands of volunteers, some of whom took days off work to sell hot dogs, brownies and beer at the tournament at Torrey Pines Golf Course. Those volunteers ended up making the nonprofits about $7 an hour.
That's less than the state minimum wage, and far less than what some nonprofits expected, based on figures they said were provided by the caterer, Minnesota-based Prom Management Group.
Prom, which has contracted with the U.S. Golf Association to run concessions at the past nine U.S. Opens, collected about $3.8 million at the event before expenses. The nonprofits got about $257,400, which Prom called a record payout.
“We're very hurt that there are some people disappointed with payouts they received, and we feel like we gave them everything they deserved,” said Paula Johnson, Prom's controller.
Of the 26 nonprofits involved, 22 were reached to comment. Ten were pleased with the amount raised, but 12 were disappointed. Some now say their budgets are pinched and credibility damaged with donors and volunteers.
Alex Cano of the Make-A-Wish Foundation of San Diego said he would not have done it if the estimates were more accurate. He had more than 200 volunteers working on behalf of his group and was expecting $20,000 to $30,000. Make-A-Wish ended up with less than $12,000.
“It was a great event, and we had a wonderful time – up to the payout,” he said. “When you upsell me and under-deliver, you have a problem with everybody.”
Nonprofit analysts say this could be a cautionary tale for nonprofits that jump at the chance to make money working for private contractors without delving enough into the details.
“A lot of us in this field are so anxious to find other sources of income to support the real work we do,” said Sara Roscoe Wilson, executive director of San Diego-based Nonprofit Management Solutions, which provides educational resources to nonprofits. “When nonprofits enter into business arrangements, they should be more careful and do their own due diligence.”
Several nonprofits say they asked the right questions about how much to expect. The problem was the answers turned out to be wrong.
“There's an integrity issue here,” said Laurin Pause, executive director of the Community Resource Center in Encinitas. “I think we were misled about how much the payout was going to be.”
More than 500 volunteers ran three concession stands to raise money for the Community Resource Center, which helps domestic violence victims and the homeless. Pause said she was told to expect $30,000 to $40,000. Her organization received just over $15,000.
Several nonprofits said they had conversations with Krista Kretman, Prom's staffing and personnel coordinator, during which Kretman provided earnings estimates based on last year's revenue. Prom officials say there may have been a misunderstanding, but there was never an intent to mislead.
“I never promised anybody any money,” Kretman said. “A volunteer wants to know what they're worth, but how do you define worth to a volunteer?”
There is no documented financial guarantee to the nonprofits. Contracts said each nonprofit would receive a prorated share of 8 percent of all concession proceeds, excluding sales tax.
Kretman said the focus should be that “$257,000 got pumped back into the community of San Diego” to help run charities and programs.
One potential problem is that Prom more than doubled the number of volunteer shifts from last year's U.S. Open at Oakmont, Pa., diluting the money split among the nonprofits.
Last year, Prom had to hire temporary labor to run concessions because it did not staff enough volunteers. This year, Prom filled about 5,300 volunteer shifts and avoided hiring temporary workers. But doubling the shifts effectively cut in half how much money each volunteer raised.
“We should have been told that,” said Jeff Wallin, a board member at the San Diego Master Chorale, which recruited about 200 volunteers for the event.
Wallin's group received about $14,000, when he said he had been told to expect $25,000. In hindsight, Wallin, a retired executive, places some of the blame on himself for signing “a very weak contract.”
Several nonprofits that were pleased with their amounts said they approached the fundraiser with no expectations.
Sports 4 Exceptional Athletes will put its $18,578 toward equipment and tournaments. Pro Kids, a charity that uses golf to promote education and character in youths, received $3,754 and put it toward college scholarships and youth education programs.
Marty Remmell, Pro Kids chief executive officer, said she was “thrilled” with the experience because it taught her group about community service.
Father Joe's Villages, which provides rehabilitation programs for the homeless, raised the most – $40,814. Organizers said they were pleased with that amount.
But volunteers from other groups say they felt taken advantage of.
“We worked our hearts out,” said Gene Zoval, 72, of Carlsbad, who described working 12-hour shifts carrying heavy crates of bottled water and soda. “I came home and had cramps in my legs. We feel just horrible about it.”
Zoval worked three days on behalf of St. Elizabeth Knights of Columbus, a religious charity in Carlsbad. He said his group hoped to make $40,000 based on information provided by Prom from the previous year's event. Instead, it received about $21,000.
Some nonprofits said they were further confused when the checks they received bore the name of the Century Club, a nonprofit that puts on the annual Buick Invitational golf tournament at Torrey Pines.
Tom Wilson, Century Club's executive director, said his organization received no benefit from distributing the money, and simply did so because it was asked.
Johnson, Prom's controller, said the company hopes to be awarded a Buick contract in the future, and allowed the Century Club to disperse the money with a letter soliciting fundraising volunteers.
The idea, she said, was “to show (the community and the Century Club that) Prom gave $257,000 back to the San Diego community. Look what they did for the U.S Open, look what they could do for the Buick and San Diego community.”
Eleanor Yang Su: (619) 542-4564; eleanor.su@uniontrib.com
