Dark money network linked to Democratic Arabella Advisors faces IRS complaint for enriching former Clinton aide.

Nonprofit Groups Accused of ‍Illegally Diverting Funds ⁢to Benefit Founder

A watchdog group has filed a complaint with the IRS, alleging that nonprofit groups within the largest Democratic-linked dark money network in the United States may have illegally funneled money to⁢ benefit the founder of the for-profit firm overseeing them. The conservative watchdog,‌ Americans for Public​ Trust, claims that these groups, managed ​by Arabella Advisors, have potentially ‍abused their tax-exempt status by paying the firm over $228‍ million in above fair-market fees over the past two decades.

Complex Dark Money Network

Arabella Advisors, founded by former White ‍House appointee Eric Kessler, has been heavily involved in​ Democratic politics through its management of liberal nonprofit‌ groups such as New​ Venture Fund, Sixteen Thirty Fund, Windward Fund, and Hopewell Fund. ‌Americans for Public Trust alleges that Kessler misled the IRS and may have personally benefited ⁢by redirecting⁢ nonprofit funds back into his own pocket​ through Arabella Advisors.

“Eric Kessler ‌created one of the most complex and‌ sophisticated dark money networks influencing U.S. politics and policy today,” said Caitlin Sutherland, the ⁤executive director of Americans for‍ Public Trust. “Now, it appears as though ​he ‍misled the IRS and may⁣ have illegally personally benefited by⁣ rerouting nonprofit cash back into his own pocket through Arabella Advisors.”

Questionable ⁤Control and Partisan Activity

The complaint highlights Arabella’s significant level of ⁣control over New ‌Venture Fund and other groups it sponsors, as revealed in⁢ the consultancy’s internal employee handbook. New Venture Fund and similar organizations, including North Fund, serve as umbrella ⁣groups for influential left-wing advocacy hubs that are not required⁤ to file tax forms with the ‍IRS. In July, New Venture ​Fund was accused of potentially engaging in partisan campaign activity, which is prohibited for‌ tax-exempt charities.

Financial Figures and Response

The nonprofit groups ‌under Arabella ⁢received⁢ a combined $3.3 billion in 2020 and 2021. Americans for Public Trust’s complaint states that ‌New Venture Fund paid Arabella ⁣$166 million between 2006 and‌ 2021, while Sixteen Thirty ​Fund paid almost $25 million, Windward Fund provided $11.9 million, and Hopewell Fund ​contributed‍ nearly $25 million. Arabella ⁢Advisors has ⁢not yet responded⁢ to ‍the allegations.

Questioning the Nonprofit Groups’ Purposes

The complaint contrasts⁤ the stated purposes of the Arabella nonprofit groups with the payments made to Arabella Advisors. New Venture Fund claims to focus ⁢on environmental preservation and protection, while ⁣Sixteen Thirty⁤ Fund aims to advocate for progressive policies. Windward Fund raises ​awareness about environmental conservation, and‌ Hopewell Fund seeks to ⁤achieve lasting improvements to society. Americans⁤ for Public Trust argues that these payments primarily‌ benefit ​Arabella and​ its creator, rather than serving the public good.

The watchdog group ⁤calls on the IRS to revoke the tax-exempt status of the nonprofit groups affiliated with Arabella, as it believes they are ⁣not operating exclusively for ⁤exempt purposes.

The ‌complaint from Americans for Public Trust follows a similar​ call for investigation by the​ liberal watchdog Campaign⁣ for‌ Accountability, which targeted nonprofit groups affiliated with conservative activist Leonard Leo. Americans for Public Trust has received ⁣funding from DonorsTrust, a ⁤right-leaning ​fund, and identifies as an independent organization‌ dedicated to upholding‌ the law for all‍ politicians and political groups.

Click here to read ​more from the Washington​ Examiner.

*As an Amazon Associate I earn from qualifying purchases