A Baltimore City taxpayer- funded nonprofit announced a plan to send $1.5 million to Mayor Brandon Scott’s office to help “community-based providers access public spaces and city support,” sparking criticism from some accounting experts.

The Baltimore Children and Youth Fund is guaranteed taxpayer dollars each year through the Baltimore City charter. The group operates as a nonprofit and uses taxpayer money to boost youth programming, mostly through grants to organizations in the Baltimore area. However, BCYF recently announced a plan to give Scott’s office $1.5 million.

“BCYF is supporting strategic summer partnerships coordinated through the Mayor’s Office, including $500,000 designated to deepen alignment between BCYF grantees and city agencies,” the organization’s April 29 news release stated.

“Government and community partnerships amplify what’s possible,” it continues. “This investment helps community-based providers access public spaces and city support — extending their reach and strengthening Baltimore’s youth-serving ecosystem.”

Scott and BCYF did not respond to questions about why Baltimore City taxpayer dollars would go to a nonprofit that then sends the money back to the Baltimore City government.

BCYF is not required to conduct regular audits like Baltimore City government agencies because it operates as a nonprofit. Its latest nonprofit tax form in 2023 shows that more than 99.9% of its income came from government grants.

Laurie Styron is the CEO of Charity Watch, where she researches nonprofit finances. She said she was puzzled by the arrangement between BCYF and Scott.

“When dealing with public money, not closing loopholes to avoid audits or disclosures is really bad form, whether strictly illegal or not,” Styron said. “While there could be legitimate instances of transactions occurring back and forth between a charity and a government office, I have never seen an arrangement structured in a way that has the effect of allowing a government office to avoid scrutiny about its use of public money.”

Alysia Lee, the president of BCYF, insisted her organization’s plans will not impact its support to local charities.

“Thanks to careful stewardship and reserves, Baltimore Children & Youth Fund’s Summer 2025 investments do not impact FY26 grantmaking budgets for grassroots organizations, and we are, as always, fully committed to ensuring our city’s youth have enriching activities and opportunities this summer,” she told Spotlight on Maryland.

Scott’s proposed Baltimore City budget for fiscal year 2026 revealed BCYF is set to receive $16 million in taxpayer dollars — $7 million of which is then sent to the Mayor’s Office of Employment Development, as previously reported by Spotlight on Maryland.

Scott announced his office’s partnership with BCYF in March. However, BCYF has yet to issue a news release about the partnership, instead announcing last week its “Summer Investment Plan,” which lists $1.5 million for the “Mayor’s Office Initiatives.”

Other listed spending in BCYF’s news release includes an “emergency investment” of $4.9 million in YouthWorks, which is an employment program run by MOED in partnership with local organizations. BCYF announced $2.9 million to reach 47 local grantee partners offering youth programming.

BCYF’s latest nonprofit tax form from 2023 revealed that 62% of its funding was used to send grants to different organizations, while the remaining 38% was used for administrative expenses.

David Williams, the president of the Taxpayer Protection Alliance, said moving money between government entities and nonprofits enables potential mismanagement.

“This doesn’t make a lot of sense,” he told Spotlight on Maryland. “A nonprofit should not be used as a funnel to give money back to the city.”

“The concern is that when you have money that is funneled through any sort of entity, you increase the chances of waste, fraud and abuse,” he continued.

Spotlight on Maryland is a joint venture by FOX45 News and The Baltimore Sun. Have a news tip? Contact Patrick Hauf at pjhauf@sbgtv.com. Follow him on X @PatrickHauf.