Denver Auditor Finds Misuse of Taxpayer Funds by Caring for Denver Foundation

Audit uncovers excessive spending on alcohol and meals, grants outside of approved purposes

Published on Feb. 26, 2026

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A report by the Denver Auditor's Office has found that the Caring for Denver Foundation, which receives a dedicated portion of the city's sales tax, has misused thousands of dollars in taxpayer funds. The audit uncovered that an executive spent over $3,000 on expensive alcoholic drinks and the staff spent more than $28,000 on meals over a three-year period. The foundation also gave grants for purposes outside of what's allowed under city ordinance, including for healing circles and 'self-care', and in some cases to groups that lied on their grant applications.

Why it matters

The Caring for Denver Foundation was created in 2018 when Denver voters approved a 0.25% sales tax to fund mental health and substance abuse programs. The misuse of taxpayer funds by the organization raises concerns about its fiscal accountability and whether it is delivering on the intended purpose approved by voters.

The details

The audit found that Lorez Meinhold, the executive director of the Caring for Denver Foundation, spent over $3,000 of taxpayer money on expensive alcoholic drinks as part of the group's high spending on meals. The staff spent more than $28,000 on meals over three years. The organization has also given out grants for purposes that are technically outside of what's allowed under city ordinance, including for healing circles and 'self-care.' In other instances, Caring for Denver gave money to groups that lied on their grant applications.

  • The Caring for Denver Foundation was created in 2018 when Denver voters approved a 0.25% sales tax.
  • As of 2024, the foundation had awarded more than $185 million in grants to 270 groups.

The players

Caring for Denver Foundation

A taxpayer-funded group that has a mission of preventing suicide and helping people with substance use problems, and receives a dedicated portion of the city's sales and use tax.

Lorez Meinhold

The executive director of the Caring for Denver Foundation, who spent thousands of dollars of taxpayer money on alcohol and meals.

Tim O'Brien

The Denver Auditor, who issued the report criticizing the Caring for Denver Foundation's misuse of funds.

Leslie Herod

The former state representative who spearheaded the Caring for Denver initiative and is currently listed as the board chair of the foundation.

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What they’re saying

“These expenses show a disregard for fiscal accountability. I question whether it is best practice for taxpayers to foot the bill for alcohol and meals in the amount and frequency we discovered.”

— Tim O'Brien, Denver Auditor (Denver Post)

“We meet grantees where they are and what they're comfortable with. We recognize that we were entrusted with funds and that even this small contradiction matters.”

— Lorez Meinhold, Executive Director, Caring for Denver Foundation (Denver Post)

What’s next

The Caring for Denver Foundation is now considering changing its internal policies regarding reimbursement for meals and alcohol.

The takeaway

The audit of the Caring for Denver Foundation raises serious concerns about the organization's fiscal responsibility and whether it is using taxpayer funds as intended by voters. The misuse of funds on alcohol and excessive meals, as well as grants outside the approved purpose, undermine the public's trust in the foundation's ability to effectively support mental health and substance abuse programs in Denver.