Community Action Duluth responds to recent criticism
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DULUTH, Minn. – There have been recent allegations made against the leadership of Community Action Duluth (CAD) and its staff.
A news release was sent by Executive Director Classie Dudley said there have been public misrepresentations of Executive Director Compensation, Farmers Market Operations & Vendor Payments, Board Member Transitions, Employee Medical Insurance. along with Commitment to Equity, Transparency, and Community.
The release was sent moments before a news conference was held by members of AFSCME who work at Community Action Duluth.
In the news release Dudley replies to what she calls, “misinterpretations, inaccuracies, and plainly false claims”.
She also believes she is being targeted because of her race, sex, and age.
The news release says in part, “The Community Action Duluth Board of Directors also wants to acknowledge a difficult but important truth. As a Black woman leading a prominent nonprofit organization in Duluth, Executive Director Dudley has faced a level of scrutiny and personal attacks that extend far beyond normal professional accountability. The pattern of misinformation, sensationalized narratives, and public targeting is not happening in a vacuum. The Community Action Duluth Board of Directors believes that race, sex, and age are contributing factors in how recent events have unfolded. This is not an accusation against any one individual. It is a recognition of the broader systems and dynamics that often subject leaders of color, especially Black women, to disproportionate criticism, unnecessarily harsh judgments, and public narratives that question and attempt to undermine their competence, integrity, or authority.”
FULL NEWS RELEASE:
Press Release for November 20, 2025
Community Action Duluth Fights Misinformation with Facts
Duluth, MN — Over the past several weeks, numerous allegations have been made regarding Community Action Duluth (CAD) and its staff, full of misinterpretations, inaccuracies, and plainly false claims. The Community Action Duluth Board of Directors rejects these mischaracterizations as the facts regarding CAD’s work and team – including its Executive Director, Classie Dudley – are detailed clearly below. As always, Community Action Duluth remains committed to transparency and fiscal responsibility, and CAD’s mission of supporting low-income individuals and families in Duluth and surrounding communities is paramount in CAD’s daily operations and of utmost importance.
Executive Director Compensation:
A recent media inaccurately reported that the Executive Director received a $50,000 raise this year. This was a misreading of financial documents. Executive Director Classie Dudley was hired midway through the fiscal year, in June 2022, resulting in a pro-rated salary.* Executive Director Dudley’s starting annual salary was $100,000. In 2023, the Community Action Duluth Board of Directors approved a 3% cost-of-living adjustment for all CAD employees. CAD’s financial auditor recently confirmed these numbers.
Community Action Duluth follows the federal fiscal calendar (October–September). The compensation listed is entirely consistent with the approved salary for the role and does not reflect any individual raises having been made between 2022 and 2024. Executive Director Dudley supervises the work of nine (9) direct reports and five (5) operational contractors, including the oversight of eight (8) service categories representing thirteen (13) programs. Her role is crucial in ensuring the smooth operation of CAD and the delivery of its mission.
Executive Director Classie Dudley’s pay breakdown:
Farmers Market Operations & Vendor Payments:
Statements have also been made about the status of Community Action Duluth’s Lincoln Park Farmers Market and CAD’s financial obligations to local growers. While CAD, like many nonprofits, has navigated financial challenges, many of which stem from the recent federal government shutdown on October 1st, which impacted the organization and many others who rely on governmental funding and programs, the following facts remain true:
● CAD is a 501(c)(3) grant-funded organization, meaning that most of CAD’s programs operate through reimbursable grants. This is a standard and widely used funding structure for nonprofits in Minnesota and nationwide. Under this model, the organization provides services first and then submits documentation to funders for reimbursement. These reimbursements are made on a monthly or quarterly cycle, depending on the specific grant. Because of this structure, cash flow naturally fluctuates throughout the year. It is normal for reimbursable grants to create temporary gaps between when services are provided and when the funds are received. These temporary gaps should not be confused with debt or financial instability. They are a routine part of managing multiple grants and programs.
● CAD receives around $2.9 million in revenue each year, with an equal amount paid annually to vendors, employee payroll and benefits, and to operate its programs. This represents about $241,000 in monthly payables. As of November 18, 2025, Community Action Duluth has confirmed that it has $78,365.54 in outstanding invoices.
● CAD uses contracted vendors for Human Resources and Finance to reduce in-house costs and to ensure continuity of services.
● CAD has not ended the Seeds of Success program; it remains an essential part of CAD’s food access work. As in every winter season, CAD reduces outdoor farmers market events and shifts focus to the Mobile Market, which brings healthy food directly to community members with limited transportation or access.
● In early October 2025, CAD’s Board of Directors learned of outstanding payments due to the farmers. The Board made the fiscally responsible decision to cease hosting winter markets while addressing EBT reimbursements and reconciling accounts, and seasonally shifting operations to CAD’s Mobile Market. Closing the farmers’ markets for the season was a decision made with significant guidance and direction from the CAD’s Board.
● CAD has no outstanding invoices with farmers or vendors for May, June, or July. All payments are current as of August 25, 2025.
● CAD provides some farmers with assistance in accepting EBT payments at market locations. This allows farmers to sell their products without the expense of holding an individual EBT license. CAD returns those funds to the farmers after payments are reimbursed to the organization following approval of qualifying purchases. Receiving and allocating payments requires significant administrative resources. CAD prioritizes disbursing funds to farmers once they are received.
● The CAD Board of Directors and Executive Director Dudley understand the frustrations of CAD farmers’ market farmers and vendors with the time it is taking to settle vendor invoices. CAD plans to resolve the outstanding invoices for August to October in November and December as reimbursements become available.
CAD will continue partnering with farmers and vendors and is currently evaluating the 2026 farmers’ market season to ensure long-term sustainability. CAD’s commitment to the community remains unwavering, and the CAD Board of Directors and Executive Director Dudley will strive to address any concerns or issues that may arise. We value our community and are dedicated to serving its needs.
Board Member Transitions:
There have been public statements that multiple CAD Board Members have “rage-quit” in a “mass exodus”. More accurately, Board transitions occurred gradually throughout 2025, as is reflective of normal board member term limits and generalized governance needs. All but one were unrelated to current news coverage or organizational operations. These transitions were routine, expected, and aligned with CAD’s established bylaws. The timeline is as follows:
● Two board members’ service terms ended in May 2025 and in November 2025
● Two board members transitioned off in August 2025 and November 2025 due to capacity
Additionally, CAD had been notified that community members were sending messages to the public board email address, but board members were not receiving them due to an access issue. In the process of correcting this problem, CAD temporarily removed the outdated board email address and updated the website to reflect only current board members. This website update has been misinterpreted as multiple sudden resignations.
Please respect the privacy of CAD’s past Board of Directors. However, you may reference the “on-the-record” statements from past board members below.
Shannon RedBrook:
“I finished my final term on the CAD Board back in May. I served from 2014 to 2020, and again from 2022 through May of 2025, working under three different CAD Executive Directors. After more than eight years of service, I felt I had done my duty to the community and was ready to turn my time and energy toward my education and family.”Iris Carufel:
“I left the CAD board in August because I did not have the time in my life to dedicate to CAD due to increasing personal life and work needs. I wish Community Action Duluth all the best and will continue to participate in community events.”Susana Pelayo-Woodward:
“I submitted my resignation letter on November 4, 2025. It is with regret that I had to resign from my position on the Community Action Duluth Board of Directors. My work and personal life commitments have become too great to fulfill my Board member responsibilities. I trust that the Community Action Duluth Board and Director will be able to find a resolution to the current situation in the best interests of the organization’s mission.”Sarah Lyons:
“My 2-year term came to an end at CAD in November, and due to professional and family duties, I opted not to renew my term as a board member. I believe in CAD’s mission and hope that everything can be resolved for the sake of CAD participants, employees, and the ED.”Wendy Durrwachter:
On November 14th, Durrwachter submitted the following statement to the CAD Board: “After much deliberation, I have decided today that it is best for me to resign from the CAD board. My schedule was already at capacity when I joined the board, and the time commitment has turned out to be more than I can manage in a sustainable way. I attended an all-day housing meeting today for city council, and realized that I am quite far behind in my council duties. I need to be putting all of my energy into analyzing the 2026 city budget so that I can properly advocate for my constituents. I wish you all the best.”On November 15th, the Press reported the following statement from Durrwachter: “I have resigned from the CAD board because I have concerns about the current state of the organization and I’ve concluded that further service on the board would not be an effective way to have my concerns addressed.”
There is a claim that the Community Action Duluth Board of Directors needs to have between 15 and 51 members. Note that the State of Minnesota Office of Economic Opportunity supported Community Action Duluth with its most recent edition of the bylaws in 2023, a portion of which is highlighted below regarding board members.
Community Action Duluth Bylaws state: In accordance with the tripartite compliance requirements of the Community Services Block Grant (CSBG), the Board membership shall consist of three (3) sectors: Public sector (elected officials), Community sector (CAD participants), and Private sector (community members). The Board of Directors shall consist of not less than twelve (12) and not more than fifteen (15) members.
The Community Action Duluth Board of Directors is working to onboard new board members in the coming months to get CAD back to at least twelve members.
Employee Medical Insurance:
Recent media reports also raise concerns that Community Action Duluth has not paid Employee Health Insurance Premiums. CAD wants to set the record straight that CAD employees have not lost their health insurance.
Employees received healthcare coverage letters due to a processing error when CAD moved from BlueCross to Medica. The letters were triggered when CAD’s insurance payment to Medica was not processed in time due to the changeover on the 20th of the month, which prompted the Insurance Agency’s automatic letters to be sent out. CAD sent out the funds to Medica before the 20th. Medica had the funds in its system but had not fully processed them yet. The records on the 20th showed that it was still not completely processed, and thus triggered the coverage letters to go out to the employees. Executive Director Dudley let employees know at a staff meeting of the error in them getting that letter from Medica, and that all health insurance-related bills were paid, and their coverage was not interrupted.
Email from Medica on Tuesday, November 11, 2025, 4:13 PM states the following:
“As discussed today on 11/11/2025, Community Action Duluth is currently up to date on payments for health insurance coverage. Please disregard the letters that were sent to your employees and use this email as confirmation that their policies are still active. Also, please note that there was no lapse in coverage and the group was never termed in the system as the issue was resolved before then.”
Commitment to Equity, Transparency, and Community:
Community Action Duluth is aware of the concerns raised today. While the Community Action Duluth Board of Directors respects individuals’ right to share their views, there have been many statements made that do not reflect the full context or the facts. Community Action Duluth remains fully committed to transparency, accountability, and compliance with all federal and state requirements. The Community Action Duluth Board of Directors is taking the concerns CAD Press Release for November 2025 seriously and will continue to address them through the appropriate internal and legal channels. CAD’s focus remains on serving the community and supporting CAD staff and participants.
The Community Action Duluth Board of Directors also wants to acknowledge a difficult but important truth. As a Black woman leading a prominent nonprofit organization in Duluth, Executive Director Dudley has faced a level of scrutiny and personal attacks that extend far beyond normal professional accountability. The pattern of misinformation, sensationalized narratives, and public targeting is not happening in a vacuum.
The Community Action Duluth Board of Directors believes that race, sex, and age are contributing factors in how recent events have unfolded. This is not an accusation against any one individual. It is a recognition of the broader systems and dynamics that often subject leaders of color, especially Black women, to disproportionate criticism, unnecessarily harsh judgments, and public narratives that question and attempt to undermine their competence, integrity, or authority.
The Community Action Duluth Board of Directors takes these dynamics seriously because they not only affect leadership but also CAD staff, participants, and the communities CAD serves. The CAD Board of Directors remains committed to equity, truth, and community-centered leadership, and we ask that conversations about CAD’s work remain grounded in facts rather than narratives shaped by bias. Community Action Duluth’s focus continues to be serving families, strengthening CAD programs, and building a more just and inclusive community.
Community Action Duluth Board of Directors is deeply proud of the work CAD does every day to support families, expand food access, strengthen workforce opportunities, and address poverty at its roots. Community Action Duluth Board of Directors welcomes accountability and is open to dialogue grounded in facts rather than misinformation. Community Action Duluth remains committed to transparency, partnership, and the long-standing trust the Twin Ports community has placed in the organization, its Executive Director, and its Board of Directors.
This document was created by the Community Action Duluth Board of Directors’ Executive Team and released with the Community Action Duluth Board of Directors’ approval.
