Wise Giving Wednesday: Oregon Charity Leader Accused of Stealing Disaster Relief Funds

A case involving alleged stolen charity funds shows how quickly weak oversight can put donations, a charity’s mission, and public trust at risk.

Oregon Lawsuit Alleges Disaster Relief Funds Were Stolen

On April 16, Oregon Attorney General Dan Rayfield filed a lawsuit against Marcus Brooks, the founder and executive director of Cascade Relief Team (CRT).

Brooks established the charity in September 2020, purportedly offering aid to victims of fires, floods, and tornadoes in Oregon (during one of the state’s most destructive wildfire seasons) and in Kentucky.

Alleged Wild Spending, Not On Disaster Aid

The lawsuit alleges that Brooks diverted contributions and government grants for personal use, including spending at casinos, on personal vacations including Disneyland, as well as on vehicles and personal bills.

Among the alleged misused funds are $270,861 for Brooks’s credit card payments, loans, and other bills, and another $67,885 spent on rent, child support payments, liquor, strip clubs, and jewelry.

A Red Cross Grant Meant for Tornado Victims Comes Under Scrutiny

The lawsuit further claims that a $326,000 Red Cross grant to CRT, intended to help tornado victims in Kentucky, ended up in an overdrawn CRT account and incurred $17,000 in overdraft fees.

According to the lawsuit, Brooks claimed the remaining $309,000 went toward restructuring CRT, but the funds were allegedly used to start a personal business.

CRT ran out of money in 2023, and Brooks allegedly fired all staff members without notice to donors, beneficiaries, or the communities meant to benefit from CRT’s programs.

The Governance Gaps Behind the Allegations

The lawsuit alleges that Brooks was solely in charge of CRT’s finances and that the organization was not adequately governed.

According to the complaint, none of the board members listed on CRT’s government filings attended meetings or reviewed financial records, and there may have been no meaningful financial records.

The complaint further alleges that Brooks ran funds through 26 different bank accounts, opening and draining accounts, and accepting loans on CRT’s behalf that were never deposited but repaid with CRT funds. 

The district attorney is seeking a court order requiring Brooks to repay the funds, barring him from serving in a leadership role at a charity in the future, and shutting down CRT.

What Strong Charity Oversight Should Look Like

While the lawsuit against Brooks will take some time to conclude, it serves as a reminder to charities about the importance of strong governance practices.

Our 20 BBB Standards for Charity Accountability offer guidance on strong oversight and governance practices that help reduce the risk of financial mismanagement and maintain transparency, accountability, and public trust.

Below are some highlights from our governance standards, many of which directly relate to the accusations against Marcus Brooks:

• Maintain a board with at least five members

• Hold at least three board meetings per year

• Hold regular CEO performance reviews conducted by the board

• The board should oversee and approve the budget, fundraising practices, conflict of interest policies, and accounting procedures

• Limit the number of compensated board members and ensure that the board chair and board treasurer are not compensated

• Establish and enforce a conflict of interest policy, including procedures for arm’s-length transactions

Disaster Relief Giving Tips for Donors

As hurricane and wildfire season approaches, we will provide guidance to help donors make informed disaster relief contributions tailored to specific events.

In the meantime, here are general disaster relief tips to keep in mind. 

Remember: Don’t just Give. Give wisely.

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org to check out any charity before giving. Our recently evaluated charities include:

• Robert & Ethel Kennedy Human Rights Center
• Xerces Society for Invertebrate Conservation
• Thomas Jefferson Foundation

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.