Community Action Duluth Responds to “Misinformation” After Period of Silence

Community Action Duluth’s executive director Zayla Asquith-Heinz addressed ongoing controversy surrounding the organization on Wednesday, taking aim at what she described as “misinformation” being spread about the nonprofit’s operations and leadership.

Speaking at a press conference held at the organization’s downtown Duluth headquarters, Asquith-Heinz defended Community Action Duluth (CAD) amid growing scrutiny from former employees and community members regarding its management practices and financial decisions.

“There have been half-truths and rumors circulating about our organization,” Asquith-Heinz stated. “Today, I want to set the record straight and provide clarity on the important work we continue to do for vulnerable populations in our community.”

The controversy began brewing several months ago when multiple staff members departed the organization, raising questions about internal policies and leadership direction. Former employees have voiced concerns about what they characterize as a toxic work environment and questionable financial management.

Community Action Duluth, established in 1964, serves as one of Minnesota’s key anti-poverty agencies, providing essential services including tax preparation assistance, employment support, financial education, and food access programs to thousands of low-income residents across the region.

Asquith-Heinz, who has led the organization since 2021, emphasized that CAD maintains strong financial oversight and remains committed to its core mission despite recent challenges. She presented documentation showing that the organization continues to meet its grant obligations and service delivery targets.

“Our dedication to serving the Duluth community has never wavered,” she said. “We continue to help families move out of poverty and build financial stability through our comprehensive programming.”

Board president Sarah Hannigan also spoke at the event, expressing the board’s full confidence in the current leadership team. “We have conducted thorough reviews of all concerns brought to our attention and have found no evidence of financial impropriety or mission drift,” Hannigan stated.

However, critics remain unconvinced. Former program coordinator Jessica Lowell, who left the organization in January, told Northern News Now that staff concerns have been consistently dismissed. “The issues go beyond personality conflicts,” Lowell said. “There are serious questions about how resources are being allocated and whether the community’s needs are truly being prioritized.”

Local advocacy groups have called for greater transparency, including requests for an independent audit and more detailed financial reporting from the organization. Community Action Duluth receives substantial funding through federal, state, and local grants, making its financial stewardship a matter of public interest.

St. Louis County Commissioner Ashley Grimm acknowledged the controversy but emphasized the importance of the organization’s services. “Community Action provides critical support to our most vulnerable residents. Whatever internal challenges they’re facing, we need to ensure those services continue uninterrupted,” Grimm said.

The organization has implemented several changes in response to criticism, including the formation of a staff advisory committee and more regular communication with stakeholders. Asquith-Heinz also announced plans for a community forum next month where residents can learn more about CAD’s programs and provide feedback.

The situation at Community Action Duluth reflects broader challenges facing nonprofit organizations nationwide, as they balance increasing community needs with limited resources and heightened expectations for accountability and workplace culture.

Industry experts note that community action agencies across the country are navigating similar tensions as they adapt to changing funding landscapes and evolving approaches to poverty reduction.

“Organizations like CAD are essential safety net providers,” said Michael Johnson, executive director of the Minnesota Community Action Partnership. “But they must also demonstrate transparency and responsiveness to maintain public trust.”

For now, Community Action Duluth continues its operations, serving approximately 3,000 households annually through its various programs. The organization emphasized that clients should continue to access services as needed, regardless of the ongoing controversy.

“Our doors remain open,” Asquith-Heinz concluded. “And our commitment to creating pathways out of poverty for Duluth residents remains unchanged.”