Apple Tree closures spark controversy as one location remains open
Apple Tree Children's Center, a nonprofit child care center in Sioux Falls, South Dakota, recently announced the closure of all four of its locations, but later reversed the decision and will keep one open under new leadership. However, questions have been raised about the center's financial management after reviewing its tax returns. The returns show that the executive director, who is also the board chair, receives a salary and rental income from several of the center's facilities. Additionally, his wife and son also draw salaries from the center. The returns indicate a profit in the last four years, but something major must have happened in 2023. The center is also facing litigation related to a child injury. Nonprofit consultant Michael Wyland advises other nonprofits to have arm's length bidding opportunities to avoid any perception of unfair advantage.