Milwaukee Social Development Commission Board Members Resigned

Two commissioners stepped down amid an ongoing financial crisis at the troubled agency.

Updated on Oct. 14, 2026 in Debt Relief

Milwaukee Social Development Commission Board Members Resigned

Live Poll

Should a local non-profit agency facing a significant deficit file for bankruptcy to address its debt?

Two members of the Milwaukee Social Development Commission board, Pam Fendt and Richard Diaz, resigned on Tuesday. The agency is currently grappling with a net deficit of just under $3.5 million.

Why it matters

The resignations followed concerns regarding the agency's management and governance. A breakdown in internal financial controls previously left the commission unable to pay its employees.

The Social Development Commission faces a net deficit of just under $3.5 million with only $2,770 in cash on hand. Leadership is exploring a potential $15 million revolving credit facility from Wings Credit Union.

The players

Pam Fendt

She is a former member of the Social Development Commission board who resigned citing governance and management concerns.

Richard Diaz

He is a former member of the Social Development Commission board who stepped down following the organization's financial collapse.

Jorge Franco

He serves as the board chair of the Social Development Commission and was reelected to the position in September 2026.

United Way

This non-profit organization recently withdrew its future support from the Social Development Commission.

Milwaukee Area Labor Council

This labor advocacy group formally ended its support for the agency following reports of financial mismanagement.

The details

The commission, which shut down in April 2024, attempted a limited reopening in December 2024 but continues to face significant instability. Board members are now weighing bankruptcy options, while the agency seeks to reestablish a foundation to secure unrestricted private funding.

The Social Development Commission was founded in 1963.
Operations at the agency were shut down in April 2024.
A limited attempt to reopen the agency occurred in December 2024.
Board chair Jorge Franco was reelected on Sept. 23, 2026.
Two board members resigned on Oct. 13, 2026.

Market Landscape

The potential bankruptcy filing marks a significant collapse for an institution that has operated as a pillar of local social services since 1963. This dissolution signals a major withdrawal of institutional support from community partners like United Way.

As the agency explores bankruptcy, residents who rely on the commission for public services may face continued service interruptions and lack of access to assistance programs. Future attempts to reapply for the Volunteer Income Tax Assistance program remain uncertain for local taxpayers.

The takeaway

The instability at the Social Development Commission highlights the critical importance of maintaining rigorous financial controls in non-profit management. Organizations reliant on public trust must prioritize transparency to ensure sustained support from donors and community partners.