Introduction
A Clinton-linked nonprofit, the National Diversity Council (NDC), filed for bankruptcy in March 2025 after a explosive scandal involving the alleged embezzlement of millions by its executives. Once a prominent force in diversity, equity, and inclusion (DEI), the organization now faces ruin following a lawsuit from its board accusing founder R. Dennis Kennedy and senior leaders of siphoning donor funds for personal gain.
What Happened to the National Diversity Council?
The National Diversity Council, founded by Kennedy, submitted its bankruptcy filing on March 17, 2025, after years of alleged financial mismanagement drained its resources. A lawsuit from board members claims Kennedy, alongside colleagues deGroot and Valenciano, orchestrated a scheme to enrich themselves. The suit alleges:
- Executives paid themselves large, unapproved salaries and contractor fees.
- They claimed nearly $3 million in "back pay," disbursing over $1 million from donor funds.
- Their actions "give rise to criminal liability… at a minimum, a third-degree felony," per The Gateway Pundit.
Clinton Ties and Kennedy’s Reputation
Despite the allegations, Kennedy remains a respected figure in Democratic circles. He’s set to host a conference in April 2025 featuring Bill Clinton and Oprah Winfrey. His LinkedIn highlights a "passion for equal workplace opportunities." The NDC, meanwhile, touted a mission of "fostering diversity, equity, inclusion, and belonging" via a network of 50 state and 40 city councils, with its website showcasing Kennedy alongside Barack Obama and Hillary Clinton.
DEI Under Fire: The Bigger Picture
The NDC scandal unfolds amid a broader backlash against DEI. Since January 2025, the Trump administration has aggressively dismantled federal DEI programs. Major corporations like Meta and Amazon have followed suit, scrapping their initiatives as public sentiment shifts. Many now view DEI as a tool to diminish white male influence while enriching its architects.
What’s Next for NDC and DEI?
The NDC’s bankruptcy marks a symbolic blow to DEI, raising questions about accountability in such organizations. As Kennedy prepares for his high-profile event, the NDC’s future hangs in limbo, its reputation tarnished. This scandal could reshape the debate over DEI’s role in America.
Conclusion
The fall of the National Diversity Council is more than a tale of financial fraud—it’s a snapshot of a DEI crisis. Stay tuned to see how this 2025 scandal reshapes diversity initiatives moving forward.
Author: Planet Today
