Anti-Poverty Nonprofit Filing For Bankruptcy

City on a Hill, 2224 W. Kilbourn Ave. Photo by Jeramey Jannene.

City on a Hill, which focuses on breaking the cycle of generational poverty, has encountered its own major financial issue.

The faith-based, 501(c)(3) nonprofit announced Friday that it is filing for Chapter 11 bankruptcy.

“City on a Hill exists to restore hope, improve quality of life, and stand alongside families facing the hardest kinds of poverty,” said Mitch Lueck, board president of City on a Hill, in a press release. “Choosing to restructure is a hard decision, but it is also a hopeful one because it is about protecting this mission and honoring the trust our families, partners, donors and staff have placed in us for more than two decades. We remain deeply committed to our mission and to the families we serve. We will emerge from this moment with a strong foundation to continue creating impact in the years ahead.”

Located on the Near West Side, the organization offers an array of programs targeted at families, including a series of free health services, youth programming and faith-focused services.

The organization said the board made the “difficult but necessary” decision to file for bankruptcy after consultation with multiple advisers. It also made the decision without a CEO. The organization announced in June that Art Serna, who had led the organization for four years, was removed by the board.

“Throughout the restructuring, City on a Hill will continue its day-to-day programs — without interruption or staff layoffs — including providing health care, dental care, behavioral health and social services; a variety of youth and family programs that provide emotional, social and academic support; and training opportunities and experiences to mobilize and equip individuals, families, groups and organizations with tools to improve the well-being of our community,” said the press release.

City on a Hill is located in the former Sinai Samaritan Medical Center, 2224 W. Kilbourn Ave. It previously redeveloped a portion of the former hospital into affordable apartments.

The organization’s 2023 federal tax filing, the most recent available, shows revenue of $2.52 million and expenses of $2.44 million.

The filing says Serna was paid a salary of $73,000 in 2023 and earned $38,000 in other compensation from the nonprofit and related organizations. The report does not give clear indicators of financial distress aside from a two-year uptick in financial liabilities.

The bankruptcy filing does not yet appear in court records for the Eastern District of Wisconsin.

American Express filed a money judgment against the organization in November.

City on a Hill’s 2024 annual report, which follows a format of the organization’s choosing, says 49% of its $4.6 million in funding came from government grants and 23% came from foundations.

The organization said Bader Philanthropies and the Bradley Family Foundation continue to support it.

Last year, it celebrated the opening of a 10,000-square-foot health and wellness center in a portion of its facility.

The organization is filing under the subchapter V rules, which are intended to expedite reorganization for small organizations.

“This step enables us to continue being a reliable place of opportunity and restoration for families in Milwaukee’s central city. We are deeply grateful for the ongoing support of our donors, community partners, staff, volunteers, and other key supporters,” said Lueck.

“To guide the restructuring, the City on a Hill board has engaged experienced third-party legal advisors. In addition, the board has implemented new financial protocols, enhanced oversight measures and is working with City on a Hill executive leadership to reinforce accountability, transparency and responsible stewardship,” said the press release.

Mike Williams, the retired CEO of Guest House of Milwaukee, is listed as the interim executive director on the organization’s website.

City on a Hill was founded in 2001.

Existing members must be signed in to see the interactive map. Sign in.