Treasury Department Goes After Dark Money

On April 23, 2026, the US Treasury Department announced plans to revise Form 990, a return filed by tax-exempt organizations, to improve transparency around fiscal sponsorships and government funding. The aim is to address fraud and misconduct within nonprofit organizations, particularly those operating under complex fiscal sponsorship arrangements.

1. Overview of Treasury Department's Announcement:

• The IRS is revising Form 990 to ensure nonprofits disclose information about government contracts and fiscal sponsorship arrangements.

• Treasury Secretary Scott Bessent stated that this effort is to prevent fraud and hold wrongdoers accountable.

2. Understanding Fiscal Sponsorship:

• Fiscal sponsorship allows a nonprofit to extend its tax-exempt status to projects or organizations that align with its mission, usually for a fee.

• While this can support new charities lacking 501(c)(3) status, it can also be abused by obscure organizations to hide financial activities.

3. Current Lack of Transparency:

• Nonprofits can pass funding through umbrella organizations without filling out a separate Form 990, obscuring who controls and benefits from the funds.

• This lack of accountability raises concerns over how funds are used and who is really benefiting.

4. The Arabella Advisors Network:

• Arabella Advisors, a significant player in this space, coordinates various nonprofits that fund left-leaning initiatives.

• In recent years, this network managed nearly $1 billion in grants, often without disclosing funding sources or destinations.

5. Impacts of the Arabella Network:

• The Arabella network has been linked to significant political funding, exceeding totals raised by major political parties.

• The network allows "pop-up groups" to operate with little to no public accountability, complicating transparency further.

6. Role of Foreign Funding:

• Notably, foreign nationals have contributed to US political causes through these nonprofit structures, raising legal and ethical questions given existing restrictions on campaign financing.

7. Examples of Government Funding to Nonprofits:

• Federal dollars are being funneled to various left-leaning organizations, revealing a cycle where nonprofits dependent on government grants push for more funding and favorable policies.

• Instances exist where significant grants tied to government agencies have been directed towards organizations with clear political agendas.

8. Revolving Door and Political Connections:

• There's evidence of personnel moving between these nonprofit networks and government positions, illustrating a cycle where nonprofits may advocate for favorable government funding.

9. Restructuring in Response to Scrutiny:

• The restructuring of Arabella Advisors into new organizations reflects attempts to mitigate reputational risks while maintaining operations.

• Similar shifting among organizations like the Tides Foundation seeks to evade increased scrutiny as well.

The Treasury Department's initiative to revise Form 990 represents a significant step towards improving accountability in nonprofit financial practices. By targeting the opaque nature of fiscal sponsorships, the effort seeks to shed light on how vast sums of money are used in political activism and charity. Continued congressional investigations and public awareness are essential in addressing the systemic issues of transparency and accountability in the nonprofit sector. The recent movements by organizations warrant close monitoring, as they indicate an ongoing struggle regarding the influence of money in politics and the need for clearer oversight in nonprofit dealings. 

https://amgreatness.com/2026/05/08/treasury-department-goes-after-dark-money/