Another Stacy Abrams Nonprofit Could Be In Trouble

A voting rights group started by twice-failed Georgia gubernatorial candidate Stacey Abrams should be stripped of its tax-exempt status for “blatant disregard” of non-profit rules, a watchdog organization argued Tuesday. 

The Foundation for Accountability and Civic Trust (FACT) filed a complaint with the IRS, saying that Fair Fight Action should be investigated for bankrolling an expensive election lawsuit it argues was only for Abrams’s personal benefit. The complaint comes just months after another one of Abrams’s election non-profit organizations was penalized for illegally spending millions to back her campaign. 

The lawsuit in question, Fair Fight Action v. Raffensperger, challenged Georgia officials over various election integrity measures in place during Abrams’ 2018 race against Republican Brian Kemp. After several years of litigation, Fair Fight Action lost its case when an Obama-appointed judge ruled that Georgia’s election laws were constitutional and did not violate the Voting Rights Act. 

During the suit, Fair Fight Action was represented by a law firm operated by Allegra Lawrence-Hardy, one of Abrams’s close friends.

“The law is clear that organizations with tax-exempt status must operate for the public good, not for the personal benefit of one individual,” FACT Executive Director Kendra Arnold told The Daily Wire. “Fair Fight Action’s activities, including funding what appears to be a failed politically motivated lawsuit that paid millions to a close personal friend, demonstrate a blatant disregard for these rules.”

Over the course of five years, Fair Fight Action paid the firm of Lawrence-Hardy over $20 million, according to tax filings. Fair Fight Action paid the firm $3,062,292 in 2019, $6,363,615 in 2020, $4,441,206 in 2021, $5,034,464 in 2022, and $1,300,280 in 2023.

Arnold argues that Fair Fight Action launched its lawsuit solely for Abrams’s benefit. 

“After she lost her first election for governor of Georgia in 2018, Fair Fight Action engaged in what appeared to be political activity and brought a lawsuit challenging Abrams’ election loss,” Arnold wrote in a letter to the IRS obtained by The Daily Wire. “The organization has served as an arm of Abrams’ political campaigns, notably funding a lawsuit directly challenging her first campaign loss and serving as a bridge between her two runs for governor.”

Once described by the New York Times as a “fundraising powerhouse for Democrats,” Fair Fight Action has struggled in recent years. In January 2024, it was reported that the group was cutting 75% of its staff and was millions of dollars in debt. 

“In essence, an organization interested in providing a ‘common good’ for the citizenry would not put its existence or efficacy at risk to benefit a single individual,” Arnold told The Daily Wire. 

In her letter, Arnold pointed to the New Georgia Project, another one of Abram’s linked voting organizations that has faced scrutiny. The organization, which Abrams founded in 2013, agreed to pay $300,000 after the State Ethics Commission found that the organization likely violated state campaign finance laws by failing to report over $7 million spent in support of Abrams. 

Arnold wants the IRS to impose a financial penalty and revoke Fair Fight Action’s tax-exempt status if merited by an investigation. 

“The facts above certainly indicate that the sole motivation of Fair Fight Action and its conduct has been to benefit a few individuals — not the community as a whole,” she wrote.