DEI Nonprofits Avoid Fraudulent Waste
False Assumption: Corporate and government funding to DEI nonprofits reliably supports effective diversity initiatives without significant embezzlement or self-dealing.
Written by FARAgent on February 11, 2026
During the post-2020 racial reckoning, corporations and governments poured cash into woke NGOs promising diversity benefits. Groups like the National Diversity Council charged companies $4,999 per attendee for conferences featuring celebrities. Executives treated these nonprofits as personal piggy banks.
The National Diversity Council's founder R. Dennis Kennedy paid himself millions in excessive 'back pay' from donor funds, using the charity as a front for his for-profit Diversity & Leadership Inc. When the board demanded repayment, Kennedy stole trademarks, cloned websites, and created a fake organization to siphon payments directly. Bill Clinton and Oprah Winfrey remain booked for his imposter conference.
As DEI funding slows, auditors uncover the bezzle. The Council filed for bankruptcy on March 17, 2025. Growing evidence from lawsuits and exposés reveals systemic looting in DEI charities, with suspicions of many similar cases emerging.
People Involved
- In the world of DEI nonprofits, R. Dennis Kennedy stood out as the founder of the National Diversity Council. He paid himself millions from donor funds, framing it as salary and back pay. When challenged, he stole trademarks and set up a fake organization to keep the money flowing. [1][2]
- Meanwhile, Luke Rosiak, an investigative reporter at the Daily Wire, dug into the mess. His work spotlighted the embezzlement, casting him as a lone voice against the tide of unchecked DEI spending. [1]
▶ Supporting Quotes (2)
“its founder R. Dennis Kennedy “improperly paid himself millions of dollars from NDC’s donor funds.” The suit said Kennedy “paid himself a grossly excessive salary” while using the nonprofit as a front for his for-profit diversity consulting business”— How big is the DEI bezzle?
“I’ve complimented Aaron Sibarium in the past, and now I’d like to do the same for Luke Rosiak. Here’s a wonderful article by Rosiak in the Daily Wire”— How big is the DEI bezzle?
Organizations Involved
The National Diversity Council operated as a DEI nonprofit, charging corporations $4,999 for conferences while its executives siphoned off donor funds. It presented itself as a hub for legitimate diversity work, but the looting told a different story. [1][2] The Daily Wire stepped in with reporting that detailed the bankruptcy and theft, pulling back the curtain on what growing evidence suggests was systemic fraud in such organizations. [1][2]
▶ Supporting Quotes (2)
“the looting of the nonprofit National Diversity Council, a Woke charity that put on conferences charging corporations $4,999 to have their DEI staffers hobnob with celebrities like Bill and Hill”— How big is the DEI bezzle?
“Here’s a wonderful article by Rosiak in the Daily Wire about the looting of the nonprofit National Diversity Council”— How big is the DEI bezzle?
The Foundation
DEI nonprofits gained trust through their woke branding and celebrity endorsements, leading many to assume their conferences with figures like Bill Clinton and Oprah Winfrey delivered real diversity value. This facade hid executive self-dealing, as charities became vehicles for personal gain. [1][2] The economist John Kenneth Galbraith's 'bezzle' theory helped explain the tolerance for such fraud; it posited that undiscovered embezzlement balloons during boom times, much like the post-2020 racial reckoning when funds poured into woke causes without scrutiny. Growing evidence suggests this assumption of reliability was flawed, though the debate continues. [1]
▶ Supporting Quotes (2)
“For years, people were led to believe that the elaborate conference was part of NDC’s charity work, not Kennedy’s for-profit business.”— How big is the DEI bezzle?
“Economist John Kenneth Galbraith is famous for saying, “Recessions catch what the auditors missed.” … the bezzle increases rapidly. In depression all this is reversed.”— How big is the DEI bezzle?
How It Spread
The idea that DEI funding avoided waste spread through lavish corporate conferences. These events featured keynotes by Bill Clinton and Oprah Winfrey, luring companies to pay up under the guise of nonprofit diversity efforts. [1][2] Even after bankruptcy, imposter conferences with the same celebrities kept drawing payments, perpetuating the notion that such outfits were above reproach. Increasingly, critics see this as a clever propagation of a flawed assumption. [1][2]
▶ Supporting Quotes (2)
“Conference-goers can meet them for $4,999. … For years, people were led to believe that the elaborate conference was part of NDC’s charity work”— How big is the DEI bezzle?
“Bill Clinton and Oprah Winfrey are set to keynote a conference run by the alleged thief… next month.”— How big is the DEI bezzle?
Resulting Policies
Corporations poured millions into DEI spending, directing funds to groups like the National Diversity Council. They operated on the belief that these nonprofits provided genuine value, not opportunities for theft. [1] As the racial reckoning peaked around 2020, this policy of unchecked giving took hold in boardrooms across America, though emerging doubts now question its wisdom.
▶ Supporting Quotes (1)
“With corporations and government throwing less cash at Woke NGOs, amusing frauds are now being revealed.”— How big is the DEI bezzle?
Harm Caused
Executives at the National Diversity Council stole millions from donor funds, pushing the organization into bankruptcy. This case points to a broader 'bezzle' in DEI nonprofits, likely hiding many millions in similar frauds. [1][2] After the collapse, R. Dennis Kennedy's fake site, NationalDiversityCouncil.org, continued tricking donors into paying his for-profit entity directly. Growing evidence suggests these harms undermined effective diversity work, even as some defend the overall system. [2]
▶ Supporting Quotes (2)
“The three executives basically paid themselves a million dollars extra from the NGO… Kennedy “improperly paid himself millions of dollars from NDC’s donor funds.””— How big is the DEI bezzle?
“NationalDiversityCouncil.org now leads to a website of an organization that purports to be the National Diversity Council… Dawn Hooper… told The Daily Wire that the site is “not operated by the National Diversity Council.””— National Diversity Council Files For Bankruptcy, Says Top Employees Stole Millions
Downfall
The assumption began to crack when a board lawsuit exposed the theft at the National Diversity Council. This led to a bankruptcy filing on March 17, 2025. [1][2] As DEI funding slowed with the end of the racial reckoning, it mirrored Galbraith's bezzle in a recession, revealing hidden embezzlement. Increasingly recognized as flawed, the idea faces growing challenges, though not all experts agree it's fully debunked. [1][2]
▶ Supporting Quotes (1)
“The National Diversity Council filed for bankruptcy on March 17 after its board said in a lawsuit that its founder R. Dennis Kennedy “improperly paid himself millions of dollars”— How big is the DEI bezzle?
Sources
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[1]
How big is the DEI bezzle?reputable_journalism
- [2]