Key Highlights
- The president and CEO of Sherman Phoenix Foundation, Stacia Thompson, has left the organization amid signs of financial trouble.
- Sherman Phoenix owes over $95,000 in delinquent property taxes to the City of Milwaukee and is subject to a tax warrant for unpaid unemployment tax payments.
- The nonprofit operates a marketplace for small minority-owned businesses at 3536 W. Fond du Lac Ave., Milwaukee.
Leadership Transition Amid Financial Struggles
In an abrupt move, Stacia Thompson has stepped down from her position as president and CEO of the Sherman Phoenix Foundation, effective October 9, 2024. Her exit comes amid signs of significant financial challenges facing the organization.
Financial Troubles at Sherman Phoenix
The departure of Thompson follows a series of financial issues that have plagued the nonprofit since its inception. According to records from the City of Milwaukee and state Department of Workforce Development, Sherman Phoenix is behind in property tax payments for 2023 and 2024, with outstanding debts totaling $98,655. Additionally, a tax warrant has been issued by the Department of Workforce Development for unpaid unemployment taxes amounting to $1,289.
Thompson’s compensation package reflects these financial pressures.
She received nearly $136,000 in total compensation in 2023, an increase from $95,608 the previous year. This increase, coupled with the organization’s debt issues, has raised concerns about transparency and accountability.
Organizational Response and Future Plans
In a statement posted to its website, the board of directors of Sherman Phoenix Foundation emphasized their commitment to maintaining the long-term health, transparency, and sustainability of the organization. The board cited “tenant feedback and an internal review of operations” as factors leading to Thompson’s departure.
As part of the transition process, Romero McCants will lead day-to-day operations, while Rashidah Butler-Jackson will assist with continuity efforts. The board will maintain direct oversight during its search for an interim executive director, promising updates on their leadership search soon.
Background and Impact
Sherman Phoenix was established in the wake of civil unrest following the police shooting death of Sylville Smith in 2016. The complex at 3536 W. Fond du Lac Ave. has since become a hub for small minority-owned businesses, fostering entrepreneurship and inclusivity within Milwaukee’s economy.
The foundation has supported numerous successful ventures, including TrueMan McGee’s “Funky Fresh” spring rolls and Lush Popcorn by Marcia and Marc Taylor.
Despite its mission to aid in community renewal, Sherman Phoenix now faces significant financial challenges that threaten its ability to continue serving the entrepreneurs and residents it was established to support.
The departure of Thompson and ongoing financial issues underscore the complex realities facing Milwaukee’s nonprofit sector, particularly those focusing on economic development and minority entrepreneurship. As the board navigates these challenges, the future of Sherman Phoenix remains uncertain but crucial for the continued vitality of Milwaukee’s small business community.
