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Nonprofit Scandal: Connecticut Organization Misuses Millions Meant for Low-Income Heating Assistance

A Connecticut-based nonprofit organization has come under fire for allegedly diverting millions of dollars designated for assisting low-income households with winter heating costs toward its own operational budget, according to state officials.

The Connecticut Office of Policy and Management revealed that New Opportunities, Inc. misappropriated approximately $2.8 million in taxpayer money that was earmarked to help struggling families pay their heating bills during the cold winter months. The allegations were detailed in correspondence from OPM Secretary Joshua Wojcik dated December 22, which was subsequently obtained by multiple news outlets including CT Insider and CT Mirror.

According to the official letter, the nonprofit organization acknowledged that it had inappropriately redirected grant funds intended for energy assistance to cover various other organizational expenditures. The issue came to light when New Opportunities issued three separate checks totaling $2.8 million to Eversource, a regional energy provider, for natural gas services. When Eversource attempted to deposit these checks, they were returned due to insufficient funds, revealing that the grant money had already been spent on unrelated expenses.

This misuse of designated funds represents a clear breach of both state and federal contracting regulations. While New Opportunities eventually managed to remit $1.2 million of the outstanding balance to Eversource, approximately $1.6 million remained unaccounted for as of late December.

New Opportunities, which was established in 1964, plays a significant role in managing Connecticut’s Energy Assistance Program, a federally funded initiative. The program is specifically designed to help households earning 60 percent or less of the state’s median income cover their heating expenses during winter. The funding structure involves the federal Administration for Children and Families, a division of the Department of Health and Human Services, providing grants to Connecticut. The state then distributes these funds to nonprofit organizations like New Opportunities, which are responsible for directly paying energy companies to supply heating fuel—including oil and natural gas—to qualifying low-income families.

In response to these violations, Connecticut’s Department of Social Services has prohibited New Opportunities from participating in the Energy Assistance Program in three municipalities: Waterbury, Meriden, and Torrington. Furthermore, Secretary Wojcik has indicated his intention to appoint a monitor to supervise all financial transactions conducted by the organization and has threatened to remove any board members who fail to guarantee that state and federal funding is utilized for its designated purposes.

Financial documents reveal that New Opportunities relies almost exclusively on government funding. During fiscal year 2024, the organization received $38.8 million in government grants from various sources, including the Connecticut state government and the U.S. Department of Agriculture. By contrast, private grants contributed only $995,000, and fundraising events generated a mere $1,700 in revenue.

Despite this substantial public funding, the nonprofit operated with a $1.6 million deficit in 2024. An independent financial audit raised serious concerns about the organization’s long-term viability, noting considerable uncertainty about its capacity to maintain solvency. Yet during this same period, the organization’s President and CEO, William Rybczyk, received compensation totaling $267,000. The nonprofit spent over $12 million on payroll and employee benefits. Additionally, James Gatling, the former president who retired in 2021, continued to earn more than $100,000 in fiscal year 2024. Other significant expenses included $480,000 for office costs and $427,000 for employee travel.

Beyond its energy assistance operations, New Opportunities also administers food production and early childhood education programs. In fiscal year 2025, the organization received $26.4 million from Connecticut’s state government.

The federal government has allocated $3.7 billion for Energy Assistance Programs nationwide in 2026, making rigorous oversight essential to ensure these funds reach their intended beneficiaries.