Major DEI Non-Profit Files For Bankruptcy After Bosses Allegedly Stole Millions in Donor Funds
by Ben Kew
A major DEI non-profit has filed for bankruptcy after its bosses allegedly stole millions in donor funds.
The National Diversity Council (NDC)l filed for bankruptcy earlier this month after its board members filed a lawsuit accusing founder R. Dennis Kennedy and other top employees of siphoning off millions in funds for their own benefit.
The lawsuit states:
This suit stems from Defendants’ years-long scheme to personally and improperly profit from NDC’s donations, staffing, resources, name, platform, and trademarks.
Defendants have misappropriated donor funds in numerous ways, including by unilaterally paying themselves large salaries, paying themselves as contractors, and paying non-NDC entities money that was then earmarked for the Defendants.
Defendants Kennedy, deGroot, and Valenciano created an unapproved scheme to pay themselves more money in the form of “back pay,” even though NDC never approved a deferred compensation program for them.
Defendants Kennedy, deGroot, and Valenciano unilaterally decided that they were owed almost $3 million in “back pay,” and then paid themselves more than $1 million of donor funds.
The filing added that the trio’s actions “gives rise to criminal liability… at a minimum, a third degree felony.”
Despite the severe allegations, Kennedy remains a prominent and respected figure in Democratic circles and will next month hold a conference featuring Bill Clinton and Oprah Winfrey.
According to his LinkedIn page, Kennedy is motivated by “an unwavering passion for people and works to ensure that all individuals receive equal opportunities in the workplace regardless of race, ethnicity, gender, religion, or sexual orientation.”
Meanwhile, the NDC describes itself as “dedicated to fostering diversity, equity, inclusion, and belonging (DEIB) across all sectors of society.”
”By promoting dialogue, education, and collaboration, NDC seeks to build a more inclusive world where everyone has the opportunity to succeed regardless of their background,” the organization’s website states.
It claims to have a “robust network of 50 state councils and 40 city councils under its umbrella.”
The website features images of Kennedy meeting and holding forums with the likes of Barack Obama and Hillary Clinton.
more: https://www.thegatewaypundit.com/2025/03/major-dei-non-profit-files-bankruptcy-after-bosses/