One of the largest Democratic fundraisers in the United States has approved a six-figure consulting deal with a company owned by one of its executives, fitting a broader pattern of insiders profiting from left-of-center philanthropy.
Priorities USA is a 501(c)(4) advocacy organization. Spent Over $100 million since 2016 support Liberal non-profit organizations, running Political ads and Funnel Critics allege he funneled money into an affiliated super PAC. skirt disclosure requirements. But the nonprofit, which operated as part of the national Democratic Party's funding machine in 2022, awarded a $342,000 contract to a consulting firm owned by board member Kimberly Kaufman. according to For your organization's tax returns.
A similar arrangement has caused at least one nonprofit to lose its tax-exempt status. according to To a law firm that specializes in tax law. Internal Revenue Service (IRS) 2023 Cancelled The foster care charity lost its tax-exempt status because it used charitable funds to provide financial benefits to insiders, even though the compensation was never alleged to be excessive and the transactions were approved by the organisation's board of directors.
“The IRS requires tax-exempt organizations to develop and disclose the processes their boards of directors use to identify and address potential conflicts of interest,” Kristen Eastlick, vice president of research and communications at the Capital Research Center, previously told the Daily Caller News Foundation. (RELATED: Records show Never Trump group paid millions to company run by executive director)
Details of Kaufman's deal with the company are unclear, but Priorities USA Tax returns The nonprofit specified that it paid Kauffman Group for “fundraising consulting” services, but the payments were made “below fair market value.” Priorities USA's 2022 tax return state The organization has said it will make its conflict of interest policy publicly available upon request, but did not respond to DCNF's requests for documents or to comment on the transaction.
Kaufman Group LinkedIn Page explain The company is “dedicated to advancing the Democratic Party of the United States Senate.”
Republicans are the party of voter suppression and Democrats are the party of voting rights.
this #BlackHistoryMonthwe reaffirm our commitment to mobilizing Black voters in every election. pic.twitter.com/5hqe4XYw7H
— Priorities USA (@prioritiesUSA) February 20, 2024
Kaufman serves on the board of directors of Priorities USA and, since 2015, has also served as deputy executive director of the nonprofit's affiliated super PAC, Priorities USA Action. according to on her LinkedIn.
Priorities USA Action has paid Kaufman's company more than $610,000 since 2015, ranging from consulting services to reimbursement for travel and meals. according to To Federal Election Commission records.
In its early years, from 2011 to 2013, Priorities USA Spent millions of dollars While giving money to liberal groups like Planned Parenthood and the Green Votes, the goal Defends Obamacare, promotes green energy, advocates immigration reform, etc. renewal It was founded in 2017 as a hub for the movement against then-President Donald Trump.
Since its relaunch, Priorities USA has spent millions of dollars on a public relations campaign against Trump, with the backing of George Soros. Democracy PAC And Democratic support House Majority PACIn 2023, the organization is pivoting away from TV ads, this time reimagining itself as an all-digital organization, and has pledged to spend $75 million to help President Joe Biden and other Democrats win the election, The New York Times reported. report.
For example, other liberal nonprofits such as Media Matters and the Black Lives Matter Global Network Foundation (BLMGNF) have also used charitable funds to pay large contracts to insiders.
Like Priorities USA, Media Matters paid $105,000 for “consultant advisory services” to a company owned by one of its directors in 2022, according to tax filings. Meanwhile, the BLMGNF has engaged in a multi-year pattern of approving contracts that favor companies owned by its executives and their families.
The BLMGNF's political arm, BLM PAC, has also paid more than $200,000 to a consulting firm owned by its treasurer.
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