Behind the Scenes of a Charity’s Money Problems

Back in 2018, someone who worked with a Springdale charity called 2nd Milk flagged serious concerns about how money was being handled. But those warnings never led to real changes. This is one of the key points a former board member shared during a recent fraud trial involving the charity’s founders, Jason and Lacey Carney. The couple now faces charges for allegedly stealing hundreds of thousands of dollars meant for children in Africa and other places. The charity claimed to help orphans by providing food, clean water, and education, relying on donations and sponsorships. Damon Hill joined the board in 2016 and stayed until the charity collapsed. He said he asked for financial reports to clear up confusion about spending but never got them. Instead, he got mixed messages—sometimes told the charity couldn’t afford to feed kids, other times that the founders weren’t taking a salary. No one could agree on basic facts like how many children were actually being helped or what happened to the donations. Hill even suggested hiring someone to track overseas spending and putting limits on big purchases, but nothing was done.Things got even stranger when prosecutors showed credit card statements from 2016. The card, meant for charity expenses, was used for everything from groceries to vacations, shopping sprees, and even a gun. In 2024, the bill included a trip to Tokyo and car repairs. Hill admitted he had no idea about most of these purchases. The Carneys’ kids, who weren’t even working for the charity, were listed as card users. Meanwhile, the founders were traveling frequently—cruises, ski trips, sports events—all under the charity’s name but with no clear connection to its mission. The defense argued the Carneys didn’t take a “traditional salary. ” Instead, they claimed the charity supported their missionary work. One document showed no direct payments, but another meeting agenda mentioned discussing Jason’s salary. Another board member, Casey Pierce, admitted he trusted the Carneys completely when he joined in 2016. He only handled complaints, not finances, because he believed everything was under control. By the time he realized things were off, it was too late. The charity officially shut down in early 2025 after the board resigned. The founders’ actions raise big questions about trust in nonprofits. How do donors know their money is really going to the cause? When warnings go unheard, what happens next? The trial continues, but the story already shows how easily good intentions can go wrong.