Supervisor Katrina Foley’s $25,000 chamber grant to the Ladera Rancho Chamber of Commerce is raising questions a year later. The chamber, which spends more than 91% of its expenses on its director’s compensation, has endorsed her reelection.
It’s been almost a year since Fifth District Supervisor Katrina Foley added to a Board of Supervisors meeting agenda one supplemental item to issue $25,000 in grant funding to the Ladera Rancho Chamber of Commerce to “support small businesses and workforce development.” It seemed like a relatively innocuous move at the time. But since these were taxpayer funds—and a year has passed—it’s worth asking how effective that investment was in achieving their stated goal.
The answer is frustratingly obtuse.
To make that determination, it’s worth taking a look under the proverbial hood to assess the organization’s fiscal health. On its 2023 990 Form, the Ladera Rancho Chamber of Commerce reported that it collected just over $140,000 in annual revenue, with nearly $100,000 coming from “contributions, gifts, grants, and similar contributions received.” The funds from Foley would fall under this category. Membership dues, meanwhile, accounted for only $36,506—roughly one fourth of its annual revenue.
Typically, this would be the primary source of income for 501(c)(6).
And yet, that’s not the most alarming fact their form reveals.
Worse yet, the organization claimed $116,276 in expenses, with $106,204 going to Executive Director Todd Stearns’ salary, compensation, and employee benefits. That’s well over 91% of all expenses.
The remaining 9% went mostly to software, promotional costs, and insurance—with $2,008 covering “cell phone usage.”
How much of those funds went to rendering services for members? The public records suggest $0 went to direct benefits paid to or for members; $0 went to professional fees to outside vendors; $0 on occupancy, rent, utilities, and maintenance; and only a nominal $137 went to printing, publications, postage, and shipping.
In other words, the Ladera Rancho Chamber of Commerce—which claims to be “the focal point for local business promotion, economic prosperity, community connection and networking for Ladera Ranch, Rancho Mission Viejo and the surrounding areas”—spent more than 90% of its annual expenses on one person’s salary.
The next year’s 990 was even worse: against an annual revenue of $106,665, the Chamber spent $108,760 (note the $2,095 deficit), with about 90% going to Stearns alone and the remaining $3,920 going to what appears to be a part-time chamber administrator. This was the most recent 990 Form filed by the time that Foley—despite this information being available—proceeded to funnel $25,000 in taxpayer dollars their way.
To return the favor, the Ladera Rancho Chamber of Commerce’s newsletters prominently feature Foley’s Supervisorial logo near the top of the page, as well as on the org’s website under “Gold Sponsors.” Their site and social media accounts also promote upcoming events, including the South Orange County Economic Coalition (SOCEC)’s “State of the Fifth District Luncheon” in San Juan Capistrano, which features Foley as a speaker. Neither their website nor SOCEC’s confirms whether or not the Ladera Rancho Chamber of Commerce is a paying member of SOCEC, so it’s unclear if they’re promoting it as paying members of an economic coalition or out of loyalty to Foley.
The $25,000 grant comes just over a year after Foley appointed Stearns to a position on the OC Traffic Committee.
“I am excited to represent the Fifth District on the OC Traffic Committee under appointment by Supervisor Foley,” Stearns said at the time. “Together, we will work to develop an ordinance that addresses the responsible—and safe—operation of electric bicycles in the unincorporated areas of Ladera Ranch and Rancho Mission Viejo.”
Perhaps unsurprisingly, the chamber has reportedly endorsed Foley’s reelection campaign as of January 2026, according to a recent op-ed in OC Independent penned by an anonymous Ladera Ranch observer. That’s within their right to do as a 501(c)(6), but it will, in the opinion of the writer of the OC Independent piece, lead residents to “question whether the organization is increasingly being treated—both publicly and politically—as though it represents the broader community, despite not being an elected body, public agency, or formally accountable civic institution.”
There are no immediate accusations of wrongdoing or criminality. That said, some concerned residents have likened Foley and Stearns’ relationship to a quid-pro-quo of sorts. Foley has given Stearns a seat on a county committee and has given his org grant funding. In return, Stearns ensures Foley gets positive coverage at seemingly every ribbon cutting, farmers market, car show, and community partner event—all ahead of a competitive reelection bid.
“When a private organization that publicly supports an elected official also appears to receive access, visibility, and discretionary public funding connected to that official’s office, it raises legitimate questions about whether the relationship creates the appearance of preferential status,” said the Ladera Ranch resident.
While the language of the agreement does not explicitly state that the funds cannot go to Stearns’ salary and employee benefits, it does note that the funds “must be for costs associated with the refurbishment of the Grantee’s Support of Small Businesses and Workforce Development.”
As is, there’s no way to discern how the county’s funds were spent. That’s the question residents are now seeking answers to.
“What specific activities or programs were funded with taxpayer dollars?” asked the writer of the OC Independent piece. “What measurable deliverables were completed? What reporting or oversight occurred? What results were achieved for residents?”
Similarly, why were these common sense safeguards not established from the onset?
As a side note, Stearns recently stated that the biggest challenges of running a Chamber of Commerce are “keeping spending local and raising funds.”
Evidently, with Foley’s help, it doesn’t appear he’s struggled to do either.
