The Conservative Partnership Institute, a nonprofit organization that saw a significant increase in funding after becoming a hub for President Donald J. Trump’s allies in Washington, has paid over $3.2 million since the start of 2021 to corporations led by its own leaders or their relatives. The nonprofit’s three highest-paid contractors were connected to insiders, including the president and chief operating officer of the organization. These transactions have raised concerns about self-dealing and whether the nonprofit’s money is truly serving the public good.
The institute’s ties to only one faction of American politics have also drawn scrutiny, as it pays high salaries to former Trump officials, hosts retreats for Republican lawmakers, and funds efforts to vet people and ideas for a potential second Trump term. Legal experts have voiced concerns about the lack of checks and balances in these insider transactions, highlighting the potential for overpayment given the lack of third-party oversight. While hiring insiders is allowed under certain conditions, the payments raised questions about transparency and accountability.
The institute’s donors, which include Republican political campaigns and conservative businesspeople, were largely unaware of the organization’s use of vendors with insider connections. Despite concerns about potential misuse of funds, some donors expressed confidence in the nonprofit’s leadership, citing long-standing relationships and trust. The institute’s leaders and their vendors were linked through a series of companies that were formed in Delaware, raising further questions about transparency and conflicts of interest.
While nonprofits are permitted to hire insiders as long as proper disclosures are made and fair market rates are charged, legal experts caution against such arrangements due to the potential for abuse of charity funds. The institute’s leaders did not respond to questions about the steps taken to mitigate these risks, such as soliciting bids from competing firms or recusing themselves from decisions involving their own companies. Improper benefits to insiders could result in financial penalties or even the revocation of the nonprofit’s tax exemption.
In 2021, the institute experienced a surge in fundraising, largely driven by its role as a voice for Trump’s allies and ambitions in Washington. The organization’s leaders launched several companies in Delaware, including Compass Professional and Compass Legal Services, which received substantial payments from the nonprofit. As the money flowed, the nonprofit also purchased properties and expanded its operations, further entwining itself with its insiders through these business relationships.
The ongoing transactions between the Conservative Partnership Institute and its insider-connected companies have raised concerns about compliance with nonprofit regulations and ethical standards. While the vendors have worked for other clients such as Mr. Trump’s 2024 presidential campaign and Gun Owners of America, questions remain about the extent of their business from the institute. The lack of transparency regarding the flow of funds to insiders and their companies underscores the need for greater oversight and accountability within the nonprofit sector.
