Non-profit founded by Stacey Abrams shows major financial discrepencies

February 17, 2023

Twice-failed Georgia Democratic gubernatorial candidate Stacey Abrams has long received praise from many in the mainstream media. However, Abrams may be in hot water over how her non-profit handled huge sums of money.

The Washington Free Beacon reported this week that the New Georgia Project's recent tax filings have left experts scratching their heads.

Founded by Abrams, the organization filed its 2021 Form 990 two months late, and according to the Beacon, it listed $533,846 as being paid out in consulting fees.

What's more, the non-profit is said to have provided a grant worth $67,500 to the Black Male Initiative, a charity run by the brother of Nse Ufot, who was fired as CEO of the New Georgia Project late last year.

However, the Black Male Initiative told the Beacon that it did not receive any such grant and provided the paper with a copy of its IRS financial disclosures.

Documents released

The documents show the group as receiving no consulting fees while contributions from all sources in 2021 amounted to only $255,000.

"This is something that the Internal Revenue Service should be interested in, particularly with the added element of the former officer possibly pocketing the money," nonprofit attorney Alan Dye told the Beacon.

Ufot was reportedly selected by Abrams to serve as CEO of the New Georgia Project, with the Beacon describing her as a "hand-picked leader for the group."

What's more, Dye took issue with the New Georgia Project reporting that it paid nothing in payroll taxes despite employing a large staff.

"I have no idea how a charity can have 173 paid employees and pay no payroll taxes. It’s just not possible," Dye was quoted as saying. "I can’t answer that question. There should be no excuse for that."

Also concerning is that the organization claimed in its 2020 filings to have spent $1,914,277 on salaries. Yet in 2021, the New Georgia Project listed its salary expenses for the previous year as being $19,142,227 --a tenfold difference.

Serious red flags

Scott Walter serves as president of the charity watchdog group Capital Research Center, and he agreed that the New Georgia Project's filings contain serious red flags.

"Such a bizarre discrepancy is highly unusual and certainly cause to question the merits of the accountant," Walter told the Beacon.

"In a proper accounting firm, at least 2 or 3 people would have had to examine the return before sending it to the group, and no such wild error should have been missed," he added.