Abrams Charity SCANDAL — Millions Sent to Friend’s Firm

Person handing over a stack of money

Stacey Abrams’ voter rights nonprofit funneled a staggering $20 million to her close friend’s law firm while amassing millions in debt, raising serious questions about potential self-dealing and financial mismanagement within an organization meant to protect democracy.

Key Takeaways

  • Fair Fight Action, Stacey Abrams’ nonprofit, paid over $20 million to a law firm co-founded by her friend and campaign chair, Allegra Lawrence-Hardy, potentially violating IRS regulations against self-dealing.
  • The massive payments were for a failed lawsuit against Georgia Governor Brian Kemp that was dismissed in 2022, with the court finding no evidence of voter discrimination.
  • These controversial legal expenses contributed to Fair Fight Action’s financial collapse, leaving the organization with $2.5 million in debt and forcing staff layoffs by 2024.
  • Abrams has been involved with multiple nonprofits accused of financial misconduct, including the New Georgia Project, which was fined $300,000 for failing to disclose campaign expenditures.
  • Despite these controversies, Abrams is reportedly considering a third gubernatorial run and has expressed presidential ambitions.

The $20 Million Question: Where Did Donor Money Go?

Fair Fight Action, the voting rights nonprofit established by failed Georgia gubernatorial candidate Stacey Abrams, is facing intense scrutiny after revelations that it directed more than $20 million to the law firm of Allegra Lawrence-Hardy, Abrams’ close friend and campaign chairwoman. These payments, made between 2019 and 2023, were ostensibly for legal services related to a race-bias lawsuit against Georgia Governor Brian Kemp that was ultimately dismissed by the courts in 2022. The payments averaged over $4 million annually and continued even after the lawsuit’s dismissal, raising serious red flags among ethics watchdogs and financial experts.

The nonprofit’s own governing documents explicitly state that it “will not be operated for the pecuniary gain or profit of any individual,” as Fair Fight Action’s governing documents

The enormous legal fees have been called into question when compared to the state of Georgia’s defense costs in the same case, which amounted to less than $6 million. The lawsuit, Fair Fight Action v. Raffensperger, claimed voter suppression but was rejected when the court found no evidence of discrimination. Despite this crushing legal defeat, Lawrence-Hardy’s firm continued receiving substantial payments, draining the organization’s resources and contributing to its current financial crisis.

Personal Connections Raise Conflict of Interest Concerns

The relationship between Abrams and Lawrence-Hardy extends far beyond professional collaboration. Described by Lawrence-Hardy herself as “very good friends,” Lawrence-Hardy, the pair share deep business connections. Lawrence-Hardy served as Abrams’ campaign chair for both her failed gubernatorial bids in 2018 and 2022. They previously shared office space, and Lawrence-Hardy has incorporated multiple businesses in which Abrams holds interests. This web of personal and financial ties creates an appearance of impropriety that cannot be ignored.

“Twenty million in fees is outrageous,” Paul Kamenar

The lawsuit at the center of these payments was framed by Lawrence-Hardy in dramatic terms when she claimed, “This is a modern-day Jim Crow,” Allegra Lawrence-Hardy. However, this inflammatory rhetoric failed to persuade the court, which found no evidence to support such serious allegations after years of costly litigation. While no direct evidence shows Abrams personally profited from the arrangement, the optics are troubling for an organization dedicated to election integrity and democratic principles.

A Pattern of Financial Controversies

This is not the first time organizations linked to Abrams have faced financial scrutiny. The New Georgia Project, another Abrams-founded nonprofit, was fined $300,000 for failing to disclose campaign expenditures and remains under investigation for financial discrepancies related to her 2018 gubernatorial campaign. Additionally, a watchdog group filed an IRS complaint against Fair Fight Action in 2019, alleging the organization was improperly promoting Abrams’ political career rather than focusing on its charitable mission.

These repeated controversies paint a concerning picture of how Abrams-linked organizations manage donor funds. Fair Fight Action now finds itself $2.5 million in debt and has been forced to lay off staff, while substantial donor contributions were directed to a law firm with close ties to Abrams herself. The organization has blamed the Trump administration for cutting federal funding to left-leaning NGOs, but the self-inflicted financial wounds from excessive legal spending cannot be ignored.

Political Ambitions Amid Financial Fallout

Despite these controversies, Abrams reportedly maintains significant political ambitions. Sources indicate she is considering a third gubernatorial run and has expressed a desire to become the first black female U.S. president by 2040. Abrams stepped down from Fair Fight’s board in December 2021 to run for governor again, having previously received an $80,000 annual salary as CEO. Her continued political aspirations raise questions about whether these nonprofits primarily serve as vehicles to advance her career rather than their stated charitable purposes.

The Biden administration has also faced criticism for funding a coalition that includes Abrams-linked Fair Count, suggesting the financial entanglements extend beyond Georgia. As Fair Fight Action struggles to survive its financial troubles, donors and supporters might reasonably question whether their contributions were used effectively to advance voting rights or were instead directed to benefit Abrams’ inner circle. This controversy underscores the need for greater transparency and accountability in politically connected nonprofits.

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