Atlanta-based nonprofits Partners for HOME and SafeHouse Outreach are facing a lawsuit alleging negligence in the death of a homeless man, potentially exposing the organizations to significant financial and reputational risk. The lawsuit, filed Friday by the family of the deceased, claims the nonprofits are partly responsible for the death of the man, who was allegedly inside his tent when it was bulldozed during an encampment sweep in January 2023.

The lawsuit does not specify the exact amount of damages sought, but similar cases involving negligence and wrongful death can result in settlements or jury awards ranging from hundreds of thousands to millions of dollars. Beyond the immediate financial impact of a potential settlement or judgment, the lawsuit could also lead to increased insurance premiums for the nonprofits and higher operating costs due to enhanced safety protocols and training.

The incident occurred as the city of Atlanta sought to clear encampments ahead of Martin Luther King Jr. Day celebrations, highlighting the complex intersection of homelessness, urban development, and public relations. The negative publicity surrounding the lawsuit could impact fundraising efforts for both Partners for HOME and SafeHouse Outreach, potentially reducing their ability to provide services to the homeless population. The Atlanta market for homeless services is competitive, with numerous organizations vying for funding from government sources, private donors, and corporate sponsors. A damaged reputation could give competing organizations an advantage in securing these resources.

Partners for HOME is the lead agency on homelessness for the city of Atlanta, managing a budget of approximately $20 million annually, largely funded through government grants and private donations. SafeHouse Outreach is another Atlanta nonprofit focused on serving unhoused individuals, operating with a smaller budget of around $5 million, relying on a mix of individual contributions, foundation grants, and corporate sponsorships. Both organizations play a crucial role in Atlanta's efforts to address homelessness, which affects an estimated 3,200 individuals on any given night, according to recent point-in-time counts.

The lawsuit's outcome could set a precedent for how homeless encampment sweeps are conducted in Atlanta and other cities, potentially leading to stricter regulations and increased scrutiny of the practices employed by nonprofits and government agencies. The case also raises broader questions about the ethical responsibilities of organizations involved in clearing homeless encampments and the balance between public safety concerns and the rights of vulnerable populations. The legal proceedings are expected to unfold over the coming months, and the ultimate resolution will likely have significant implications for the future of homeless services in Atlanta and beyond.