BILLINGS — The board of the Montana Rescue Mission has confirmed the termination of Executive Director Matt Lundgren, who oversaw three Billings-based nonprofits: Friendship House, the Billings Leadership Foundation, and the Montana Rescue Mission.
The move has sparked renewed scrutiny of the workplace culture under his leadership.
Listen to a former nonprofit employee detail the work environment under Matt Lundgren:
Board member Eric Peterson confirmed Lundgren was terminated but declined to provide details behind the dismissal, citing privacy concerns for current and former employees. He emphasized that the decision was not related to unconfirmed rumors of financial misconduct, money laundering or embezzlement.
Related: Montana Rescue Mission fires director Matt Lundgren following internal investigation
“I can't get into the details as to why, just because these are internal matters, and our focus is that we want to look to the future, and we want to look to where we take the rescue mission next," Peterson said Friday. "We feel that a new direction is needed, and we look forward to the future to be able to do a national search, see if we can find a new executive director for that, but in the meantime, we continue to operate the rescue mission and friendship house with no break in services."
MTN reported that the nonprofit brought in a third party to investigate internal human resource complaints against Lundgren earlier this week. On Wednesday, the board made its decision to terminate Lundgren and notified him that day.
Related: Montana Rescue Mission executive director placed on leave during internal investigation
“I think that through this process, there have been things that have come up that need to be addressed, and that's our intention to address those things. As for some of the other salacious rumors that were reported, I guess, in comment sections and things like that that I've seen, those are concerning," said Peterson. "We intend to look into all of those things, but this decision didn't stem from that.”
Lundgren did not respond to multiple requests for comment earlier this week about the investigation.
For one former employee of Lundgren's, the news of his termination brought back complicated emotions and serious concerns of what she described as a pattern of intimidation, inappropriate behavior, and toxic management during her nearly two-year employment.
Jess Farnum worked at the Friendship House from early 2022 to mid-2024 as a teacher before she was later promoted to a supervisor. It was a mission she believed in, often teaching classrooms of over 30 students. More than just a job, she said, it was a call to service.
“Friendship House is a wonderful organization in Billings. I have such a soft spot for it," said Farnum. “When I started, it was actually this refreshing place of unity and peace and togetherness, and we all got along really well."
It didn't take long before that positive environment began to change. Once she moved up in leadership, she said she was treated differently.
"I believe toxicity trickles down from the top. You can't have a toxic person in leadership and not have it start to affect all the ranks all the way down to the very bottom," said Farnum.
Farnum described an environment where staff were monitored via audio-equipped surveillance systems, discouraged from interacting with the board, and shamed for questioning leadership decisions.
“I started to meet some of the people in admin, especially after I became a supervisor, and there was definitely a sense of authoritarianism right away," said Farnum.
She described the weekly staff devotions led by Lundgren as “tense” and noted that the Christian-based teachings often contradicted the organization’s behavior. Farnum, a devout Christian herself, said she deeply felt those contradictions.
"We talked love. We claimed it. We broadcasted it. We advertised it when we got volunteers. We did this amazing facility, and look what you can come do for the homeless community, for the families, that's outside, but you could also tell that there is this air of it being about control and intimidation," said Farnum. "Personally, it was difficult for me to be part of this Christian organization that was also not feeling very Christlike under the surface."
She also described a retaliatory workplace where questioning policies or advocating for change could lead to disciplinary actions, and she was often afraid to approach HR with concerns. She recalls at least five turnovers for HR personnel during her time.
“You had a lot of people, the great people, the ones that were there for all the right reasons that one day just weren't, and sometimes it was because they had had enough. Sometimes it was because they poked around the spot," said Farnum.
Farnum said she was once written up for “inappropriate behavior” after hugging a student’s parent, along with gossiping with them and having a poor attitude—all things she claimed were untrue and believed to be used to try to push her out.
"I was told that it was from Matt, but I think it trickled down through the leadership, and things just kind of added to it. But I refused to sign it because there wasn't enough truth in it. I made every effort to make sure that I never ever crossed a line with my parents or my students," said Farnum. "I wrote a rebuttal and made sure that that got filed with it because I was not signing that."
According to Farnum, staff were largely underpaid and shamed for asking for proper compensation. She said many often worked off the clock to get duties done.
“We're getting all this money, but the teachers aren't getting paid. We got told, 'Well, you don't need a raise, you because you're doing this for Jesus.' Matt would say that to us in staff meetings,” said Farnum. "I asked about a raise and was told that I reached the ceiling and that to ask for one was considered selfish. The organization as a whole really used a moral guilt trip to really like keep you in place.”
Lundgren's salary was over $200,000 annually for the three nonprofits, according to public tax filings.
Farnum said she also raised concerns about grant reporting, such as manipulating class ratios on applications.
“We were encouraged to break the rules in order to qualify for grants," said Farnum. "We were told when Matt was doing tours with different people that, 'Make sure you don't say that, make sure you quote the ratios correctly,' and little things like that."
Farnum also alleged that Lundgren frequently made inappropriate comments toward young female staff and observed them in ways that made employees feel uncomfortable.
"One member of my team was very uncomfortable when she was vacuuming and felt like he was watching her from behind. Another one was wearing a Halloween costume that looked like cotton candy, and his comment to that was, 'Oh, I'd love to lick you,'" said Farnum. "It's just that weird feeling you get when you're being assessed in a way that you're not supposed to be assessed."
In his interview with MTN News, Peterson did not directly address the allegations of sexual misconduct. He did acknowledge public criticism over the board’s silence and secrecy.
"If I could go back and do things differently, would we do things differently? Maybe. But you have to work with the information and knowledge you have at any given time and try to make the best decision you can in that particular time," said Peterson.
Peterson said the organization, which serves hundreds of families through its shelters and programs, is conducting a national search for a new executive director and will continue operations without interruption.
"I think that the need for the services we provide is only going to grow, and so to that end, I just want to make sure that we're being the most effective with the resources we have to reach that population," said Peterson.
Farnum, despite her negative experience, continues to support the mission of the Friendship House and the work of her former colleagues.
She said she felt a deep sense of devotion to her work and hopes bringing these concerns to light can be the start of positive change for the organization, the employees, and those they serve.
“When you're trying to be a light in that environment, which a lot of us did, we tried to lighten it up. It just became more and more of a burden," said Farnum. “Friendship House itself is an amazing place ... I know the teachers that are still there, and the teachers that are there are there because their hearts are there for the kids in spite of all the above.”
