CA Gov. Gavin Newsom Florida ad. (Photo: gov.ca.gov)
Greenberg & Grimes: The Left’s Nonprofit Shadow Campaign Fund
When corporations cozy up to politicians through ‘charity,’ they’re not competing on merit—they’re buying influence
By Katy Grimes, March 31, 2025 3:00 am
In a nation built on free enterprise and personal responsibility, the abuse of nonprofit organizations and behest contributions by political elites like California Governor Gavin Newsom represents a betrayal of American values.
California’s one-party rule ensures the powerful protect their own.
These mechanisms, intended to foster benevolence, charity and public good, have instead morphed into a taxpayer-subsidized slush fund for the well-connected, allowing politicians across America to enrich their families, reward donors, and dodge accountability—all while cloaking their schemes in the guise of altruism. This is not just unethical; it’s a direct assault on the principles of limited government and fair play. It’s time to expose this racket and demand legislative reform to shut it down.
Non-profit organizations and Non-governmental organizations (NGOs) have become a shadow government in the U.S. Despite reporting on blatantly phony non-profit groups to the California Attorney General for many years, nothing ever happened. California’s corruption begins at the top, as does the corruption in the United States.
Think back to Barack Obama and ACORN, a very shady “community activist” organization that helped bring Obama to power. ACORN was a community organizing group that claimed to help poor people with low-income housing issues, but was really registering thousands/millions of people to vote in Democratic districts. Some of these supposed voters reportedly were actually dead, nonexistent, or used shacks and empty buildings as their home addresses.
Sounds just like ACTBlue, the Democratic fundraising platform, now accused ofd violating federal law in allowing terrorism-linked groups to use its services. ACTBlue is also said to be linked to financing attacks on Tesla showrooms and Elon Musk, among other violent “protests” across the country. Rep. Darrell Issa (R-CA) has formally requested the Trump administration to open up an investigation into ACTBlue to investigate “credible allegations” that ActBlue, the Democratic fundraising platform, violated federal law in allowing terrorism-linked groups to use its services.
Nonprofits, with their tax-exempt status and loose oversight, have become a playground for political insiders. Take Newsom’s wife, Jennifer Siebel Newsom, and her outfit, The Representation Project.“While her husband attends to state business, Siebel Newsom engages in her passion: advancing ‘gender justice’ through her charitable nonprofit The Representation Project, Open the Books reported. According to tax documents the organization is ‘committed to building a thriving and inclusive society through films, education, and social activism.’”
Jennifer Siebel Newsom solicited state vendors and the governor’s campaign donors for large gifts to her charity, The Representation Project. Since 2011, this supposed gender-justice charity has raked in over $800,000 from corporate giants like PG&E, AT&T, and Comcast—firms with billions at stake in California’s regulatory landscape. Siebel Newsom pocketed $2.3 million in salary over those years, pulling six-figure paychecks while her husband climbed from lieutenant governor to governor. These donors aren’t philanthropists; they’re players in a game where cash flows to the governor’s family, and favors—like lax utility oversight or cushy state contracts—flow back. It’s cronyism dressed up as compassion.
Then there’s the behest contribution scam—legalized influence peddling that Newsom has mastered. In 2019, he solicited nearly $8 million for his inaugural bash and wildfire relief, much of it from corporations with state business. In 2020, he pulled in $26 million for COVID-19 efforts, with heavy hitters like Blue Shield ($1 million) and McKinsey & Company ($250,000) chipping in—only for McKinsey to later snag a $35 million state contract.
Gov. Gavin Newsom had no-bid contracts with Blue Shield and McKinsey & Company, and outsourced much of California’s vaccine rollout during the Covid crisis, the Globe reported. “Private contractors cost taxpayers millions of dollars, while demonstrating few clear results and papering over weaknesses in the country’s public health system,” the Washington Post even reported.
Siebel Newsom, through The Representation Project, has released four films advocating gender justice. The films are leased for screenings to individuals, corporations, and schools, and come with their own lesson plans. Schools spend between $49-$599 to screen these movies to children.
With her Governor husband, who would dare deny her solicitations? See just a little conflict of interest?
Interestingly, Gavin Newsom’s home town, “San Francisco’s nonprofit sector is the largest per capita of any California county – $9 billion outstanding in federal grants and loans for Bay Area entities, according to U.S. contract data. That includes more than $1 billion earmarked directly for nonprofits, and much more that filters down to organizations across the region through state and local governments and institutions,” the San Francisco Standard recently reported. Naturally, Bay Area nonprofits are dumbfounded from President Trump’s “funding cuts and chaos. San Francisco has the largest share of the nonprofit workforce of any California county. Other Bay Area counties, including Santa Clara, San Mateo, and Alameda, follow right behind.”
California law, conveniently tightened by a bill Newsom himself signed, requires reporting these donations above $5,000, but that’s just window dressing. The system lets him shake down donors for unlimited sums, funneling cash to pet causes while building a network of indebted allies. It’s not charity; it’s a shadow campaign fund, free from the caps and scrutiny real candidates face.
This isn’t hypothetical—it’s happening in plain sight. The California State Protocol Foundation, a nonprofit tied to Newsom, which has only a 56% rating from Charity Navigator, handed out cellphones with Newsom’s personal number to CEOs in 2024, funded by private donations from businesses he regulates. Meanwhile, The Representation Project went delinquent in 2022 for flouting charitable registration rules yet kept hosting glitzy galas bankrolled by the same corporate cronies. The IRS, gutted by decades of underfunding, does nothing.
California’s watchdog Fair Political Practices Commission, tasked with policing behest payments, just shrugs, likely because Governor Newsom appointed two of the four commissioners, California’s Attorney General Rob Bonta appointed one and Secretary of State Shirley Weber appointed one. California’s Constitutional Officers and governor are all Democrats.
We know this game: the rules only apply to the little guy, while the connected skate free.
This exploitation offends on multiple levels. First, it’s a misuse of taxpayer dollars. Nonprofits’ tax breaks mean every dollar Siebel Newsom takes home is indirectly subsidized by working Americans, many of whom can’t afford California’s sky-high taxes—taxes Newsom loves to hike. Second, it erodes trust in free markets. When corporations cozy up to politicians through “charity,” they’re not competing on merit—they’re buying influence, distorting the level playing field we champion. Third, it’s a mockery of personal accountability. Newsom preaches equity and justice while his family cashes in, proving once again that progressive elites live by a different set of rules.
The broader nonprofit swamp amplifies the problem. Politicians across the spectrum set up interlocking charities, staffed by relatives and loyalists, to launder donor money into personal wealth. Funds bounce between 501(c)(3)s and 501(c)(4)s, obscuring the trail. Behest contributions supercharge this, letting officials like Newsom solicit millions with no cap, as long as they call it “public good.” It’s a huge loophole and it’s no accident—California’s one-party rule ensures the powerful protect their own.
Enough is enough. We must demand reform to dismantle this racket. First, cap behest contributions at a reasonable limit—say, $10,000 per donor annually—and ban them from entities with state contracts or lobbying interests. Second, mandate real-time public disclosure of all nonprofit donations above $1,000, stripping away the secrecy that shields these deals. Third, tighten IRS rules: no nonprofit executive tied to an elected official should draw a salary exceeding, say, $50,000 without proving the group’s impact—measured in hard outcomes, not vague platitudes. Fourth, impose stiff penalties—fines, jail time, loss of tax status—for noncompliance, like The Representation Project’s delinquency. Finally, fund enforcement. A lean, efficient government doesn’t mean a toothless one; give regulators the tools to root out abuse.
Newsom’s operation is a poster child for this corruption, but he’s not alone. The system itself is rotten, and we hardworking taxpayers —guardians of integrity and small government—must lead the charge to fix it. We need to end the nonprofit gravy train and restore a system where charity serves the people, not the powerful. Anything less is a surrender to the elitist swamp we’ve actually sworn to drain.
Richie Greenberg is a long-time San Francisco resident, political commentator and former Republican candidate for mayor. He was founder of and media spokesman for the recall of DA Chesa Boudin. Follow him on X/Twitter @greenbergnation and www.richiegreenberg.org
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So, the $64,000 dollar question is, will the Trump administration investigate this get rich scheme or let the status quo continue. I have noticed that since Newsom repurposed funds to “Trump proof” the California way of life that the Feds have taken the initiative and started proactively investigating and suing California. Who knows maybe Newsoms swing to the middle is actually a public attempt to slow the Feds down from pursuing him. My bet is that the Feds will pursue Newsom and his grift will be part of his ultimate downfall. I would encourage you to look into these community builders that provide social services. They seem to have quite a bit of sway with politicians. Who knows some of that lost homeless money might be found with these groups.
“The broader nonprofit swamp amplifies the problem. Politicians across the spectrum set up interlocking charities, staffed by relatives and loyalists, to launder donor money into personal wealth. Funds bounce between 501(c)(3)s and 501(c)(4)s, obscuring the trail. Behest contributions supercharge this, letting officials like Newsom solicit millions with no cap, as long as they call it “public good.” It’s a huge loophole and it’s no accident—California’s one-party rule ensures the powerful protect their own.”
Thank you Greenberg & Grimes for this article, which gets to the meat of the matter – the institutionalization of corruption. It explains why no elected Democrat is condemning the violent protests of Tesla and why every elected Democrat supports the continued existence of the D.C. swamp. The leftist billionaires like Soros, Gates, Hastings, Zuckerberg, et. al., have found a loophole to undermine our constitutional republic by using the pretense of “doing good for society”. The Pearl Project database shows how pervasively this globalist influence has been infused into our political process:
https://www.zerohedge.com/political/follow-money-ex-wsj-journalist-reveals-24-organizations-funding-tesla-takedown
https://docs.google.com/spreadsheets/d/13MOGhdMPc-_lGGdEGkS0QVSayczGG7Z5rlk_LUxdCTk/edit?pli=1&gid=1384937108#gid=1384937108
In my community the most glaring grift and cronyism is conducted by the NGO’s and non profits who are purportedly tasked with reducing homelessness. It’s such a scam. Homeless numbers continue to rise and the grifter’s response is we just need more money to solve the problem.
So much good, informative, and valuable stuff in this article, alongside the excellent suggestions for legislative reform of these disgusting scams. Thank you for it. Always glad to see the bad-guy “non-profits,” odious politicians, and their sleazy siblings get aired and beaten like a rug because the ones who exploit their “non-profit” status as well as stack the deck in their favor so RICHLY deserve it. One thing I did not know is that the rather small county of San Francisco’s “nonprofit sector is the largest per capita of any California county – $9 billion outstanding in federal grants and loans for Bay Area entities.” WOW.
Will be embroidering on a chair cushion, where I can always look up and see it, “cronyism dressed up as compassion.” That’s it! And hmm, let me see…. perhaps if we were to substitute the word “cronyism” with a more sharply accurate label would it more likely lead to indictment, conviction, and imprisonment of the politicians and other players who blithely and without any conscience whatsoever participate in this theft and betrayal of California taxpayers?
I actually believe that the budget numbers from the state include inflated waste, fraud and abuse to the point that are obscene. In October 2010 Schwarzenegger signed the 2010/11 budget 100 days late for $125 billion dollars. Assuming that there was no waste in that budget (I saw Karen Bass’s name mentioned in that budget discussion) and adjusting that amount for a 40.25% inflation rate then the 2025/26 budget should be in the neighborhood of $176 billion dollars (I rounded up) and yet Newsoms “roughly balanced” (their words) proposed budget of $323 billion dollars is 258% higher that the 2010/11 budget. The numbers indicate that California has been operating in the same fashion as USAID and that taxpayer money is being spent in a frivolous manner. Our own money is being used to bankrupt us.
This is very useful information and something that most Californians would never know about unless they read California Globe and they only listened to the mainstream propaganda legacy media? Hair-gel Hitler Newsom and his Weinstein trollop wife along with the rest of the criminal Democrat thug mafia in state government are blatantly abusing their positions and power? The Fair Political Practices Commission, California State Auditor, and Attorney General Rob Bonta are all worthless when it comes to addressing Democrat political corruption? They all need to be held accountable and prosecuted for their grift and graft racket?