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The McKenzie Watershed Alliance's revenue tripled in recent years. The alliance is the fiscal sponsor for the McKenzie Watershed Council, which took on government-funded work, including a high-profile Holiday Farm Fire restoration project.
The Oregon Department of Justice is investigating the McKenzie Watershed Alliance after the nonprofit reported “unauthorized payments” of more than $1.5 million.
The alliance is the fiscal sponsor of the McKenzie Watershed Council.
The McKenzie Watershed Alliance “recently identified suspected financial irregularities involving payments between our organization and the Coast Fork Willamette Watershed Council,” McKenzie Watershed Alliance Executive Director Jared Weybright said in a statement sent to Lookout Eugene-Springfield Monday, Aug. 24.
The alliance “took immediate action to secure our financial systems, notify our respective Boards of Directors, alert the appropriate legal authorities, and initiate a thorough review of our records. McKenzie Watershed Alliance has also informed our project funders and trusted partners and are working with them to address and mitigate any project impacts,” Weybright said. “The McKenzie Watershed Alliance employee associated with this matter was first placed on administrative leave and, after further investigation, their employment was terminated.”
According to 990 IRS filings posted on ProPublica’s Nonprofit Explorer, a finance director served in a part-time position of about 15 hours a week. That same person also served in a top leadership position at the Coast Fork Willamette Watershed Council, according to that organization’s 990 forms.
Weybright would not provide employee names or further details in a brief phone interview with Lookout. The Coast Fork Willamette Watershed Council deferred comment to board secretary Jeff Gowing.
In an email Gowing sent the following statement: “The individual in question is no longer with our organization. At this time, we do not have additional information to share, beyond what was covered by the media statement made by the McKenzie Watershed Alliance.”
The McKenzie Watershed Alliance’s annual revenue has tripled in recent years as it received more in government grants, according to tax filings.
In 2020, the alliance brought in $565,640 from government grants — just over half of its $1.09 million revenue. By 2024, government grants surged to $3.75 million, accounting for 99% of the alliance’s revenue.
That funding increase correlates with the McKenzie Watershed Council leading an extensive floodplain restoration project in response to the 2020 Holiday Farm Fire.
The project at Quartz Creek, a tributary of the McKenzie River, garnered national attention for its approach of resetting and flattening 1.8 miles of the creek of what it was hundreds of years ago. The project ran on a $9.7 million budget, according to documents Lookout obtained when reporting on the project last year.
The National Oceanic and Atmospheric Administration’s (NOAA) Office of Habitat Conservation awarded $7.6 million to the alliance for the project through the bipartisan Infrastructure Law and Inflation Reduction Act. The Eugene Water and Electric Board (EWEB), contributed $986,547. The Oregon Watershed Enhancement Board (OWEB) contributed nearly $1 million that EWEB administered on the project. Other funding came from the U.S. Forest Service and the nonprofit McKenzie River Trust.
Partners and agencies that responded to Lookout Eugene-Springfield could not speak in detail about whether that project was affected by the alleged financial irregularities or the misappropriations.
“EWEB is aware of allegations of financial wrongdoing by a staff member of the McKenzie Watershed Alliance. These allegations do not implicate EWEB employees. The details and facts are still emerging, and we support the investigation proceeding unhindered,” said utility spokesperson Aaron Orlowski in an email. “As a community-owned utility, being a trustworthy steward of our customers’ dollars is a top priority. We take that duty seriously and maintain strong financial controls to ensure customer dollars are appropriately spent.”
“OWEB is aware of reports of alleged misappropriation of federal and potentially state funds that may have affected grant agreements with the McKenzie Watershed Alliance,” said senior policy coordinator Eric Hartstein in an email. “These concerns have been appropriately elevated to the Oregon Department of Justice, and a formal investigation is currently underway. OWEB does not have any other information to share until the investigation is complete.”
The Oregon attorney general’s office communications director, Jenny Hansson, said the matter has been “referred” to the Department of Justice and is under review. She could not provide more details.
In his statement, Weybright said the alliance is also working with the Office of Inspector General in the U.S. Department of Commerce. The alliance also initiated an independent forensic accounting review, filed an insurance claim, and are exploring options for restitution.
While the Quartz Creek project has been a highlight for the McKenzie Watershed Council, the organization also supports programs that incentivize landowners to voluntarily repair riparian habitats, coordinate cleanup events on the McKenzie River, and runs an educational program for youth.
“The McKenzie Watershed Council’s work depends solely on voluntary and collaborative work with partners, and this past year has once again proven the value and strength of collaborative partnerships in the McKenzie River Watershed,” Weybright wrote in the council’s 2025 annual report. “The river links us all.”
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