A major diversity nonprofit just declared bankruptcy after its founder and top staff were accused of stealing millions in donor funds and using the organization as a personal cash machine.
Key Facts:
- The National Diversity Council (NDC) filed for bankruptcy on March 17, 2025.
- Founder R. Dennis Kennedy is accused of paying himself millions, including $450,000 in 2020 for just 10 hours of weekly work.
- NDC’s board alleges Kennedy, along with CEO Ángeles Valenciano and CFO Jason deGroot, paid themselves $1 million in “back pay” without approval.
- The trio allegedly transferred assets, domains, and trademarks to Kennedy, launching a shadow version of NDC to keep raking in money.
- Bill Clinton and Oprah Winfrey are scheduled to speak at a conference in April advertised by Kennedy’s for-profit firm under the NDC name.
The Rest of The Story:
The National Diversity Council, long portrayed as a leading nonprofit in the diversity, equity, and inclusion (DEI) space, has collapsed amid explosive accusations of self-dealing by its top leadership.
A lawsuit filed by the board claims founder R. Dennis Kennedy and his team siphoned off donor funds, awarded themselves inflated salaries, and moved nonprofit assets into a personal business empire.
According to IRS records and internal documents, Kennedy and his associates allegedly ran multiple nonprofits and for-profit businesses under the same DEI branding, drawing money from each while using the national nonprofit’s staff and resources.
When the board began asking questions, the trio allegedly plotted to dissolve the board, steal digital assets, and relaunch operations under a new name with Kennedy in control.
The fallout continues.
The website for the so-called National Diversity & Leadership Conference now routes to a privately run entity where tickets to meet celebrity speakers cost as much as $4,999.
Meanwhile, Kennedy continues operating similar front organizations selling expensive certifications and consulting under a veil of nonprofit credibility.
The National Diversity Council has filed for bankruptcy after those leading it fleeced the non profit organisation for millions.
The organisations founder Dennis Kennedy paid himself $450,000 for 10 hours of work per week.
Not a bad wage for a diversity…
— Tommy Robinson 🇬🇧 (@TRobinsonNewEra) March 27, 2025
Commentary:
This story isn’t just about one man’s greed—it’s a case study in how DEI nonprofits have been weaponized for personal enrichment.
For years, the left has treated tax-exempt organizations as political tools and financial playgrounds, with little oversight and a halo of virtue that shields them from scrutiny.
Kennedy didn’t just bend the rules—he assumed he didn’t have to follow them.
While conservatives are often accused of lacking compassion or diversity initiatives, this case shows how performative DEI efforts often mask a profit motive.
Kennedy’s empire wasn’t about promoting inclusion—it was about promoting himself.
And he had no problem doing it on the backs of donors and corporate sponsors who believed they were supporting a noble cause.
This was an inside job from the top.
The alleged misuse of millions wasn’t accidental; it was methodical.
From faking backpay to rewriting website domains, the trio treated the nonprofit like a personal piggy bank.
Their for-profit firm even tried to pass off a Clinton- and Winfrey-headlined conference as charitable work, when in reality, it was feeding their private coffers.
This scandal exposes a much larger rot: the DEI industrial complex built on token gestures, expensive events, and virtue-signaling celebrities.
These programs often lack measurable results and serve mainly to generate revenue for the insiders running them.
The political connections helped too.
Having speakers like Hillary Clinton, Eric Holder, and Julian Castro over the years gave Kennedy’s operation the aura of legitimacy—one that major corporations bought into.
It’s unclear how much of that money will ever be recovered, or if attendees were ever aware that their payments were going to a for-profit outfit disguised as a charity.
And while the board eventually acted, it may be too little, too late.
Kennedy and his team moved fast, transferring assets and rebranding under new names before resigning.
They’re now suing the organization they hollowed out, demanding even more cash.
The Bottom Line:
A once-prominent diversity nonprofit has collapsed under allegations of fraud, greed, and betrayal.
The founder and his team allegedly looted millions and used the group’s image to run a for-profit empire under the guise of social justice.
This story serves as a reminder: not every nonprofit claiming moral high ground is actually doing good.
Some are just cleverly disguised businesses—run by people who think the rules don’t apply to them.
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