FACT Files IRS Complaint Against Stacey Abrams’ Fair Fight Action Over Abuse of Tax-Exempt Status and Millions in Questionable Payments

Washington, D.C. — August 12, 2025 — Today, the non-partisan ethics watchdog, the Foundation for Accountability and Civic Trust (FACT), filed an IRS complaint urging an investigation into Fair Fight Action, Inc., an organization founded by former Georgia gubernatorial candidate Stacey Abrams. FACT’s complaint details that Fair Fight Action, a 501(c)(4) “social welfare” nonprofit, has functioned primarily for Abrams’ political benefit rather than public good, including directing over $20 million in legal fees to Abrams’ close friend and political ally.

After Abrams lost her first race for governor in 2018, she described Fair Fight Action as the successor to her campaign and used the organization to fund political activities, including her statewide “thank-you tour,” advertisements promoting her, and events for supporters. The group also financed a lawsuit directly challenging Abrams’ 2018 loss to Governor Brian Kemp, a case a federal court dismissed in 2022.

From 2019 to 2023, Fair Fight Action paid more than $20 million in legal fees to Allegra Lawrence-Hardy, Abrams’ friend and campaign chair for both her 2018 and 2022 gubernatorial runs. FACT’s complaint explains how these payments financially drained the nonprofit’s resources, forcing it to lay off most of its staff and significantly scale back operations.

The IRS complaint further cites a history of political misuse by Abrams-founded nonprofits, citing a recent Georgia State Ethics Commission finding that another Abrams-founded group, the New Georgia Project, illegally acted as an unregistered political committee, failing to disclose millions in contributions and expenditures to benefit Abrams and other candidates.

“The law is clear that organizations with tax-exempt status must operate for the public good, not for the personal benefit of one individual. 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. 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. The IRS must act to ensure accountability and preserve the integrity of our nonprofit sector,” said Kendra Arnold, Executive Director of FACT.

A full copy of the complaint can be found HERE.

FACT is a nonprofit organization promoting accountability, ethics, and transparency in government and civic arenas. For more on FACT, visit: http://www.factdc.org

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