An organization associated with Stacey Abrams, the two-time Georgia Democratic gubernatorial candidate, has allegedly lost more than $500,000, according to a report by the Washington Free Beacon.
The charity, known as the New Georgia Project, submitted its 2021 Form 990 financial disclosure to the IRS two months after the due date.
The report revealed a $533,846 consulting payment and a $67,500 grant to the Black Male Initiative, a charity partially run by Nse Ufot’s brother, Edima, a former employee of the New Georgia Project.
The Black Male Initiative has denied receiving any consulting payment and provided the outlet with its IRS financial disclosures, showing no income from consulting and only $255,000 in contributions from all sources in 2021.
Experts have claimed that the discrepancy is grounds for federal and state investigators to probe the situation. The missing money has raised ethical concerns and added to the challenges facing the troubled charity.
Established by Abrams in 2013, the New Georgia Project has been a prominent player in the Democratic Party’s endeavors to turn Georgia blue by expanding the state’s non-white electorate.
The organization, along with its affiliated New Georgia Project Action Fund, has been among the largest left-leaning voter registration efforts in the nation, raising a total of $54.7 million since 2020.
Earlier in November, the Free Beacon reported that the New Georgia Project was in turmoil as former senior staff accused the leadership of engaging in widespread financial misconduct.
Furthermore, Georgia’s state ethics commission has alleged that the group unlawfully worked to elect Abrams during her unsuccessful 2018 gubernatorial campaign against current Gov. Brian Kemp, a Republican.
Nse Ufot was a critical figure in the Democratic Party’s efforts, a Nigerian community organizer who was residing in Canada when Abrams convinced her to relocate to Georgia in 2014 to lead the New Georgia Project. However, Ufot’s leadership tenure with the organization came to an unexpected end in October 2022 under unclear circumstances.
The New Georgia Project’s tax forms have further discrepancies, with information that accountants believe is “impossible.” For instance, the organization’s 2020 financial disclosure reveals that it did not pay any payroll taxes that year, a claim that accountants find questionable, according to the outlet.
Scott Walter, president of the Capital Research Center, a charity watchdog group, said that such a bizarre discrepancy is highly unusual and certainly cause to question the merits of the accountant.
Caitlin Sutherland, the executive director of the charity watchdog Americans for Public Trust, added that filing a fraudulent return with the IRS carries hefty penalties, and any evidence of financial malfeasance should be taken seriously.