Nevada– A leadership battle at Lutheran Social Services of Nevada, a nonprofit that has served the Las Vegas community for decades, has erupted into public controversy — with former board members and a former CFO now calling for the removal of current leaders, citing mismanagement, mission drift, and financial concerns.
A Nonprofit in Turmoil
Once rooted in the Lutheran community’s tradition of feeding the hungry and serving the needy, the organization now finds itself at a crossroads. Two former board members — including the Rev. Hans-Lothar Dettling and the Rev. Marta Poling Schmitt — along with ex-CFO Jon Paul, have publicly criticized the current leadership, saying the nonprofit has “de-Lutheranized” itself and lost its way.
Schmitt, who resigned from the board after a failed attempt to persuade leadership to step down, described the situation bluntly: “It’s a disaster.” She and others contend that the board and CEO have steered the organization away from its mission and away from meaningful involvement by the Lutheran community that founded it.
Financial and Management Concerns
The internal dispute has centered on how funds and resources have been handled. Critics point to a controversial $42,000 payment made to the CEO’s wife, Michele Bedwell, shortly after federal tax-credit money came in — a payment made before vendors and essential services were paid, according to former CFO Jon Paul.
There are also larger questions about how federal and other grant dollars were managed, including a multimillion-dollar housing grant that was later terminated by a regional authority. Members of the Metropolitan Police Department’s public integrity unit have interviewed people formerly associated with the nonprofit as part of an investigation into financial dealings.
The nonprofit’s operations were suspended last October amid funding shortfalls and organizational challenges. Since then, food pantry services and meals for seniors — once key parts of its community work — have not resumed.
The Push to Restore Community Influence
Those advocating for leadership change have launched a petition calling for the resignations of the CEO, board chair, and others — aiming to “give back a measure of control to the community that founded it.” While signatures remain modest, the effort reflects deep dissatisfaction among former leaders and supporters who say the nonprofit must realign with its founding mission.
Churches and congregations that previously supported the nonprofit have scaled back or paused donations amid the turmoil. Some local pastors say they are hopeful the organization can be restored, but only with new leadership in place.
What This Means for the Community
Nonprofits are a vital part of the social safety net here in Nevada — especially for vulnerable populations who depend on food assistance, shelter services, and support during hard times. When leaders are seen as out of step with their mission or community expectations, it can erode trust and jeopardize essential services.
As this story continues to unfold, the focus for many is simple: get the nonprofit back on track to serve those who truly need help and ensure responsible stewardship of public and donor dollars.
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