The National Diversity Council (NDC)—once a high-profile nonprofit championing corporate “diversity, equity, and inclusion” (DEI)—has filed for bankruptcy, accusing its top leadership of stealing millions in donor funds and transferring the organization’s assets for personal gain.
In a stunning lawsuit filed by the board, the group’s founder, R. Dennis Kennedy, along with CEO Ángeles Valenciano and CFO Jason deGroot, are alleged to have used the nonprofit as a personal cash machine, enriching themselves while leaving the organization in financial ruin.
Lavish Payouts, Fake Back Pay, and Donor Abuse
According to the lawsuit, Kennedy paid himself an outsized salary, once collecting $450,000 for working just 10 hours a week, all while running his for-profit company, Diversity & Leadership Inc., through the nonprofit’s infrastructure.
Things escalated in 2022, when the DEI industry exploded with corporate cash. That’s when Kennedy and his inner circle reportedly claimed $3 million in “back pay”—and paid themselves over $1 million from donor funds without board approval.
Stealing the Brand, Hiding the Cash
When the board started asking questions, Kennedy allegedly transferred the nonprofit’s trademarks and web domains into his own name, creating a parallel entity and redirecting partnerships, resources, and branding to his private firm—all while leaving the original NDC to collapse.
The board claims these actions were intentional, designed to dismantle the nonprofit, eliminate oversight, and continue pocketing money under the guise of diversity work.
Criminal Charges on the Table
The lawsuit says the conduct may amount to felony-level criminal fraud, noting that the self-enrichment and asset transfers “give rise to criminal liability… at a minimum, a third-degree felony.”
This scandal is sending shockwaves through the nonprofit world and exposing what many conservatives have long argued: that the DEI industry is often more about power, profit, and political gamesmanship than real service or accountability.
Fake Conferences Still Being Promoted
Adding insult to injury, a suspicious website still marketing itself as the National Diversity Council is promoting a high-profile DEI conference in Los Angeles this April, boasting appearances by Bill Clinton and Oprah Winfrey. The board warns this is part of the same scheme, organized by Kennedy’s for-profit company, not the original nonprofit.
Bottom Line
The collapse of the National Diversity Council is a textbook case of what happens when ideology meets unchecked greed. A nonprofit that sold itself as a moral authority on fairness and inclusion now stands exposed as a hollow shell, plundered from within by the very people entrusted to lead it.
As investigations continue, the scandal may prove to be the clearest example yet of the DEI industry’s corruption, hypocrisy, and moral bankruptcy.