The road to recovery after financial betrayal isn’t easy, especially when you’re a nonprofit serving Calgary’s most vulnerable. Last week, I sat down with the leadership team at Community Bridges, a midsize Calgary organization still picking up the pieces after discovering their former financial officer had siphoned nearly $375,000 from their accounts over three years.
“We literally thought we might have to close our doors,” admitted Elaine Thompson, Executive Director at Community Bridges, as we spoke in their modest Kensington office. The strain was visible in her eyes despite her composed demeanor. “When you discover someone you trusted completely has been stealing from programs meant to help homeless youth, it shakes your faith in everything.”
The embezzlement, discovered during a routine audit last September, sent shockwaves through Calgary’s nonprofit community. Community Bridges has provided transitional housing and job training for at-risk youth for over fifteen years, operating on tight margins typical of the sector.
According to the Calgary Police Service, financial crimes against nonprofits have seen a troubling 23% increase since 2020. What makes Community Bridges’ story remarkable isn’t the crime itself but their transparent approach to recovery.
“We could have handled this quietly, but that felt dishonest,” Thompson explained. “Our supporters deserved to know what happened, and we believed being open about it might help other organizations protect themselves.”
The organization’s board made the difficult decision to announce the embezzlement publicly in October, sharing precisely how the theft occurred and the safeguards they’ve since implemented. Their transparency garnered unexpected community support.
Derek Williamson, a partner at Farley McNaughton Accounting who volunteered to help restructure the organization’s financial systems, told me this approach was unusual but effective. “Most organizations try to handle these situations behind closed doors, fearing donor fallout. Community Bridges did the opposite and found that honesty actually strengthened their community relationships.”
The nonprofit sector in Calgary faces unique challenges. Operating in a resource-dependent economy means funding often fluctuates with oil prices and provincial budgets. The Alberta Nonprofit Network reports that 68% of local organizations operate with less than three months of financial reserves, making them particularly vulnerable to financial mismanagement or theft.
Lisa Martinez, who coordinates homeless youth services at Community Bridges, shared how the embezzlement immediately impacted their work. “We had to cancel our winter clothing program temporarily. Telling kids we couldn’t provide warm jackets because someone stole our money was heartbreaking.”
Six months later, Community Bridges has implemented comprehensive financial safeguards including dual-approval systems for all expenditures, quarterly external audits, and separation of financial duties. Their recovery strategy offers valuable lessons for other Calgary nonprofits.
Calgary Chamber of Voluntary Organizations has cited Community Bridges’ recovery approach as a case study in crisis management. “Their response demonstrates that transparency doesn’t have to be a liability,” noted Karen Reynolds, CCVO’s executive director. “They’ve shown remarkable resilience by involving their community in the recovery process rather than hiding the problem.”
The aftermath has included some surprising developments. Several local businesses stepped forward with donations specifically earmarked for strengthening the organization’s infrastructure. Mountainview Credit Union offered free financial management workshops for their staff, and three accounting firms now provide pro bono services.
“The embezzlement was discovered because a junior staff member noticed something didn’t look right and spoke up,” Thompson emphasized. “We’ve learned that financial oversight needs to be everyone’s responsibility, not just the accounting department.”
Community Bridges’ experience highlights a sobering reality for Calgary’s charitable sector. The Alberta Charities Directorate estimates that financial misappropriation costs provincial nonprofits over $5 million annually, yet many cases go unreported due to reputational concerns.
For Thompson and her team, the path forward involves both practical changes and emotional healing. “Trust was broken,” she acknowledged. “Rebuilding that internally has been as important as implementing new financial controls.”
As Calgary faces increasing demands on its social safety net, the resilience of organizations like Community Bridges matters more than ever. Their willingness to transform a devastating setback into an opportunity for growth offers a template for organizational transparency that extends beyond the nonprofit sector.
Walking through their youth center, watching staff help teenagers prepare resumes and apply for housing subsidies, the impact of their work is evident. These are the programs that nearly disappeared because of one person’s betrayal of trust.
“We’re stronger now,” Martinez told me as we concluded our tour. “Not despite what happened, but because of how we responded to it together.”
For Calgary’s nonprofit community, that may be the most valuable lesson of all.
