Several Telugu associations in the United States are facing a severe financial crisis, with many struggling to raise enough money to organise their biennial conventions.
One well-known Telugu association has already shut down after becoming embroiled in a matching-grants fraud controversy.
Another of the oldest Telugu organisations is battling allegations of financial irregularities and internal conflicts. A third association is preparing to hold its convention soon, but reportedly with very limited funds.
In 2022, the association reportedly had nearly $4 million available for the event. This time, it has managed to raise less than $1 million.
As a result, the convention is expected to be organised on a much smaller scale compared with the grand celebrations seen in previous years.
One of the biggest reasons for this decline is the tightening or discontinuation of corporate matching-grant programmes.
Under such programmes, companies matched or even doubled donations made by their employees to eligible non-profit organisations. The system was intended to encourage charitable giving.
However, some Telugu associations were allegedly involved in misusing the scheme.
Under the alleged arrangement, employees would donate money, the company would contribute an equal or higher amount, and the association would then secretly return the employee's original donation. This allowed the organisation to retain the corporate matching contribution.
The alleged fraud came to light after whistleblowers exposed the practice. Many Telugu employees of a globally reputed multinational company reportedly lost their jobs for participating in the scheme.
Since then, corporate matching-grant programmes have either been tightened or withdrawn for several Telugu organisations.
Many Telugu employees are also now reluctant to donate because they fear scrutiny and possible disciplinary action.
Private donations have slowed as well due to economic uncertainty and inflation.
As a result, Telugu associations that once organised lavish cultural conventions are now struggling to meet even basic expenses.
Unless they rebuild trust, improve financial transparency and develop new fundraising methods, organising large-scale community events in the future could become increasingly difficult.
