Source: Fox News
Introduction
A prominent left-wing philanthropic foundation that previously reported millions in assets and bankrolled organizations like CodePink has lost its charitable registration in California, only to surface at a modest residential property in Miami, Florida. The transition has drawn scrutiny from transparency watchdogs and state regulators regarding the oversight of substantial charitable funds.
Led by veteran political activist Susan Medea Benjamin, the organization known as Arc of Justice accumulated $54.6 million in assets before state authorities revoked its operational status. Despite the revocation in California, a newly incorporated entity under the exact same name has emerged at a single-story house in Florida.
What Happened
The regulatory fallout began when the California Attorney General's Office revoked the charitable registration of Arc of Justice due to chronic failures to submit mandatory annual financial paperwork covering several consecutive years. State officials noted that the foundation ignored multiple delinquency notices prior to losing its official standing.
Following the revocation, state authorities barred the organization from distributing or spending its charitable assets without explicit prior written approval. Concurrently, an identical nonprofit entity was established in Florida, sparking concerns among investigators about a potential unauthorized transfer of funds or relocation of the endowment.
Background
Established initially as The Benjamin Fund before changing its moniker, the foundation was substantially capitalized through family wealth accumulated by Benjamin's late father, real estate developer Alvin Benjamin, and subsequent estate contributions. Over the years, the organization distributed millions of dollars in grants to progressive advocacy groups, including CodePink, Global Exchange, the Alliance for Global Justice, and the National Iranian American Council.
CodePink itself has faced mounting scrutiny from federal investigators and congressional panels regarding its policy stances and international travel. The anti-war organization co-founded by Benjamin and Jodie Evans has been probed over alleged foreign influence tied to Shanghai-based tech entrepreneur Neville Roy Singham.
Timeline
| Year / Date | Event |
|---|---|
| November 2019 | The Benjamin Fund formally changes its name to Arc of Justice. |
| January 2025 | California Attorney General's Office revokes the foundation's charitable registration. |
| May 8, 2026 | A new nonprofit under the name Arc of Justice is incorporated in Miami, Florida. |
| June 19, 2026 | California regulators issue a compliance notice reiterating asset-accounting requirements. |
| September 3, 2026 | California Attorney General's Office confirms it has not received the required asset accounting. |
Key Details
Legal representation for Arc of Justice maintained that the Florida corporate entity functioned merely as a placeholder while leaders contemplated shifting operational bases out of California. Counsel asserted that the move was never finalized, no assets were transferred, and the original California corporation still legally controls the endowment.
Financial documentation provided by the foundation's attorney verified that the multi-million-dollar portfolio remains intact within its long-standing accounts. However, tax-exempt sector experts emphasize that navigating interstate transfers requires strict compliance and prior clearance from regulatory bodies.
Impact
The compliance breakdown has highlighted vulnerabilities in tracking high-net-worth private foundations that drift out of state oversight. Nonprofit watchdog representatives have expressed concern that an entity possessing tens of millions of dollars in assets failed to fulfill fundamental reporting duties.
Furthermore, regulatory bodies in Florida confirmed that the newly established local corporation lacks authorization to solicit charitable contributions within the state. State agricultural and consumer services departments reported receiving no formal notices regarding asset transfers or operational registrations from the newly formed entity.
What Happens Next
Legal counsel for Arc of Justice indicated that the board of directors is actively evaluating options to bring the original corporation back into good standing while potentially establishing separate structural vehicles for future philanthropic activities. Meanwhile, state regulators continue to review submitted reinstatement documentation and pending financial disclosures.
