Georgia Ethics Commission Slams Abrams' NGP with Historic $300K Penalty

Paul Riverbank, 3/25/2025Georgia Ethics Commission fines Abrams' nonprofit $300K for undisclosed political activities.

The Political Landscape Shifts: Record Ethics Fine Raises Questions About Nonprofit Political Activity

In my two decades covering political finance, I've rarely seen anything quite like this. The Georgia Ethics Commission's recent $300,000 fine against the New Georgia Project isn't just making headlines – it's rewriting them. As someone who's watched campaign finance evolve since the Citizens United decision, I can tell you: this penalty isn't just unprecedented; it's transformative.

Let's put this in perspective. The Commission's decision centers on roughly $7 million in undisclosed political activities during Georgia's contentious 2018 governor's race. That's not pocket change. We're talking about $4 million in campaign contributions and another $3 million in expenditures that somehow stayed off the books.

Now, House Ways & Means Committee Chairman Jason Smith has thrown down the gauntlet. His letter to IRS Commissioner Melanie Krause doesn't mince words – he wants the organization's tax-exempt status revoked. Having covered the IRS's handling of political nonprofits for years, I can tell you this puts the agency in a particularly tough spot.

The whole situation reminds me of a conversation I had with a nonprofit tax expert last summer. "The line between civic engagement and political activity," she told me, "isn't just thin – it's constantly moving." She was right. While 501(c)(3)s can absolutely work on voter registration, they're supposed to stay miles away from campaign activity. The New Georgia Project seems to have missed that memo.

What makes this case particularly fascinating is its timing. Stacey Abrams, who founded the organization back in 2013, had stepped away before the 2018 campaign. But timing isn't everything. The organization's activities during her gubernatorial run have raised eyebrows – and now, hefty fines.

I spoke with several campaign finance attorneys this week. Most agreed: the Georgia Ethics Commission's unanimous decision signals a sea change. One veteran lawyer put it bluntly: "The regulatory landscape for nonprofits in politics? It's not just shifting – it's experiencing an earthquake."

The organization's legal team, led by Aria Branch, has taken what I'd call a strategic retreat. They're "accepting the outcome" while noting their disappointment about procedural issues. Reading between the lines, that's lawyer-speak for "we're cutting our losses."

Here's what keeps me up at night thinking about this case: The precedent it sets could fundamentally reshape how nonprofits engage in political activity. The IRS's response to Smith's letter won't just affect the New Georgia Project – it could ripple through the entire nonprofit sector.

In my view, we're watching a watershed moment in campaign finance regulation. Whether you're running a small community nonprofit or managing a major advocacy organization, the message is clear: The lines between civic engagement and political activity matter, and crossing them just got a lot more expensive.

Paul Riverbank has covered political finance and campaign regulation for major news outlets since 2001. His latest book, "Money Talks: Inside Modern Campaign Finance," was published last year.

The Political Landscape Shifts: Record Ethics Fine Raises Questions About Nonprofit Political ActivityIn my two decades covering political finance, I've rarely seen anything quite like this. The Georgia Ethics Commission's recent $300,000 fine against the New Georgia Project isn't just making headlines – it's rewriting them. As someone who's watched campaign finance evolve since the Citizens United decision, I can tell you: this penalty isn't just unprecedented; it's transformative.Let's put this in perspective. The Commission's decision centers on roughly $7 million in undisclosed political activities during Georgia's contentious 2018 governor's race. That's not pocket change. We're talking about $4 million in campaign contributions and another $3 million in expenditures that somehow stayed off the books.Now, House Ways & Means Committee Chairman Jason Smith has thrown down the gauntlet. His letter to IRS Commissioner Melanie Krause doesn't mince words – he wants the organization's tax-exempt status revoked. Having covered the IRS's handling of political nonprofits for years, I can tell you this puts the agency in a particularly tough spot.The whole situation reminds me of a conversation I had with a nonprofit tax expert last summer. "The line between civic engagement and political activity," she told me, "isn't just thin – it's constantly moving." She was right. While 501(c)(3)s can absolutely work on voter registration, they're supposed to stay miles away from campaign activity. The New Georgia Project seems to have missed that memo.What makes this case particularly fascinating is its timing. Stacey Abrams, who founded the organization back in 2013, had stepped away before the 2018 campaign. But timing isn't everything. The organization's activities during her gubernatorial run have raised eyebrows – and now, hefty fines.I spoke with several campaign finance attorneys this week. Most agreed: the Georgia Ethics Commission's unanimous decision signals a sea change. One veteran lawyer put it bluntly: "The regulatory landscape for nonprofits in politics? It's not just shifting – it's experiencing an earthquake."The organization's legal team, led by Aria Branch, has taken what I'd call a strategic retreat. They're "accepting the outcome" while noting their disappointment about procedural issues. Reading between the lines, that's lawyer-speak for "we're cutting our losses."Here's what keeps me up at night thinking about this case: The precedent it sets could fundamentally reshape how nonprofits engage in political activity. The IRS's response to Smith's letter won't just affect the New Georgia Project – it could ripple through the entire nonprofit sector.In my view, we're watching a watershed moment in campaign finance regulation. Whether you're running a small community nonprofit or managing a major advocacy organization, the message is clear: The lines between civic engagement and political activity matter, and crossing them just got a lot more expensive.Paul Riverbank has covered political finance and campaign regulation for major news outlets since 2001. His latest book, "Money Talks: Inside Modern Campaign Finance," was published last year.