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Groups impacted by Enrichmond's dissolution still seeking answers: ‘What happened to the funds?’

Enrichmond board member: 'It is my hope to help the city resolve the partner issues as soon as possible'
Questions remain after non-profit overseeing Richmond's parks, green spaces, dissolves
Posted at 3:02 PM, Jan 14, 2023
and last updated 2023-01-15 13:16:25-05

RICHMOND, Va. -- For Jeffry Burden, the last six months have been one of "wait and see".

"We're still kind of assessing where we will go," said Burden. "There's a bit of a hesitation about making a lot of long term strategic plans."

What Burden is waiting for is a better idea of how a now over six-month saga will be resolved -- the dissolution of the Enrichmond Foundation.

The decades-old non-profitserved as an umbrella organization for dozens of smaller "Friends of" groups in the city -- like Friends of Shockoe Hill Cemetery, where Burden is a member. Enrichmond allowed those groups to use its non-profit status to raise funds, which it would hold onto and release upon request.

However, after Enrichmond’s board voted to dissolve in June 2022 those groups said they have been unable to access that money and do not know if they ever will. As of Friday, the State Corporation Commission told CBS 6 that no paperwork had been filed to begin that process.

"It was in the neighborhood of a couple of thousands," said Burden of the amount they had with Enrichmond at the time.

Burden said his group has not made long-term strategic plans because they had waited to see if the dissolution process would be made more clear, but is not shocked they still do not have answers.

"So, while we and I had been hopeful that there would have been some concrete progress there hasn't been, or at least it hasn't been announced to us, that there's been any kind of particular progress or movement toward a resolution that would assist the groups and getting back on their feet and going again," said Burden.

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Meanwhile, the Richmond Tree Stewards, who President Dave Pohlmann said had just under $29,000 with Enrichmond, have taken a different approach while waiting for the same answers. Pohlmann said a major donor provided an infusion of cash to continue on with their commitments and they have since obtained 501(c)(3) status themselves.

“We are doing our best to continue our mission while still trying to figure out what happened to the funds that were stored with Enrichmond and what’s being done to hold Enrichmond accountable for basically walking away with all of this,” said Pohlmann.

Along with the “Friends of” groups, another aspect of the Enrichmond dissolution is the future of two historically Black cemeteries — East End and Evergreen, which Enrichmond took control of in 2019.

“It feels to a certain extent, like we’re starting off at at square one,” said Brian Palmer, a founding member of Friends of East End and member of the Descendants Council of Greater Richmond. “Friends of East End have been out at East End cemetery doing impromptu cleanup…We’re not waiting so much for things to be resolved, but, we have to kind of monitor the situation before starting any official, organized volunteer work days like we used to do.”

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Thursday, City of Richmond officials spoke with the Richmond City Council Education and Human Services Standing Committee to update efforts to provide assistance to the impacted groups.

"We will continue to pursue everything that we can within our powers to support these groups," said Dominic Barrett, Strategic Projects and Grants Advisor, with Office of Human Services. "And these efforts, whether that be helping with immediate stopgap needs, whether that's being supportive of the outside efforts to convene groups and help explore options, whether that be trying to connect to any philanthropic opportunities…to meet immediate or long term needs, or to help explore long-term fiscal agency opportunities."

Council members said they consistently hear from constituents impacted by the situation and are frustrated they could not give them clear guidance as to what to do.

"So, if it's options we have before us like A, B, and C, that would be great, rather than just waiting to figure out what the best answer is," said 1st District Councilmember Andreas Addison.

"The city legally cannot pursue the Enrichmond Foundation in a court of law, because we have not given money to the Enrichmond Foundation for two years," said 5th District Councilmember Stephanie Lynch, who added they are working on funding for some of the smaller organizations. "What I'm hoping to do is to, at least, use my voice and to take a stand against that type of behavior to let these organizations know…that we are here for them, that we got their back, that we are not going to let this organization get away with taking money out of their bank accounts and not holding them accountable."

On Friday, city officials told CBS 6 that Enrichmond board members had dropped off "historical documents, financial records, staff IT equipment, and other stored items" and the city, on the advice of attorneys, accepted the items and "placed them in a secured location."

They did not respond to a follow-up question if the financial records contained information about what had happened to the money belonging to the groups.

Pohlmann said he was underwhelmed by Thursday’s discussion.

“I was hopeful that [Thursday], I was going to hear that city council was starting some kind of legal action. Doesn't matter whether it's civil or criminal, but something that would hold Enrichmond accountable,” said Pohlmann. “We're still trying to find answers as to are there funds there? If so, how much? What happened and why is no one being held accountable for this? I mean, it seems like that's something that the city should be able to help us with. That's not something that small partners of the former Enrichmond group need to go out on their own to do.”

Palmer added the city should not bear full responsibility for solving the problem and that state and federal agencies that provided funding to Enrichmond in the past.

“I think vigilance on the part of citizens and I think we have to continue asking questions of our city council, of our mayor, but also our senators, state senators and our delegates, and also the federal entities,” said Palmer.

Pohlmann said legal action is something the Enrichmond Accountability Project (EAP), made up of former Enrichmond groups, is pursuing. He said they had spoken to the Richmond Police Department (RPD), but were told there was no evidence of a crime and it could not be investigated. CBS 6 has reached out to RPD for comment on this.

Pohlmann said members of the EAP will meet with an attorney next week to discuss potential next steps.

Enrichmond
Enrichmond

CBS 6 reached out to the former executive director of Enrichmond, but have not heard back. However, John Mitchell, a board member did respond to a request for an update.

Mitchell, who said he was a former board member and rejoined the board after the dissolution process to ensure care and access to the cemeteries, said he is “currently working with city officials to fulfill the transfer of assets.”

Mitchell also provided CBS 6 with a document that he said was an approximate timeline put together by board members of “activity since we became aware of the operational irregularities” dating back to November/December 2021.

It said a law firm hired to assist with the process presented the board with five options to dissolve the nonprofit in September. Without mentioning what the options were, the timeline said all five were unsuccessfully pursued by November. It added they have had discussions with creditors, the Virginia Attorney General’s Office, the City of Richmond Attorney’s Office, the City of Richmond Parks and Recreation Department, the late Rep. McEachin’s Office, and potential stewards

It said by December 2022 it was determined the situation was “much too complicated” for the volunteer board to resolve and the majority of the board submitted their final resignations.

“It is my hope to help the city resolve the partner issues as soon as possible. I don't want to make any comments or speculation on what the next steps will be,” Mitchell said in an email, who added he would reach out to the EAP this week.

Depend on CBS 6 News and WTVR.com for in-depth coverage of this important local story. Anyone with more information can email newstips@wtvr.com to send a tip.

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