KNOXVILLE, Tenn. — Next Step Initiative, a Knoxville nonprofit that helps people experiencing homelessness and substance use disorders, was found to have over $76,000 in unexplained transactions in less than a year, according to the Tennessee Comptroller’s Office.
The office found at least $76,585.57 in suspicious spending from the nonprofit between July 2024 and March 2025. The investigation was launched after nonprofit officials themselves flagged the activity.
The spending included cash withdrawals, reimbursements without documentation, transfers to employees through digital payment apps, paid-time-off payouts, payroll advances, and education and licensing expenses with no supporting records…