Federal investigators are scrutinizing the nonprofit network established by Jennifer Siebel Newsom, California's First Partner, with legal experts raising concerns about compliance with tax-exempt charity laws, the handling of finances, and the promotion of political activism through educational materials.
Siebel Newsom leads two organizations: The Representation Project, which produces documentary films and educational content, and the California Partners Project, focused on gender equity. Federal investigators in Sacramento are examining these nonprofits, their tax matters, and other undisclosed activities. California Governor Gavin Newsom has previously suggested these investigations are retaliation for his political stances.
Concerns have been raised regarding the content of educational materials distributed by The Representation Project. Documentaries featuring the governor, such as "The Great American Lie," include political commentary. Accompanying classroom materials encourage civic and political engagement, including voter registration tied to specific policy views and support for candidates aligned with a particular political philosophy. Legal experts suggest that if 501(c)(3) funds were used to develop or distribute such materials, it could violate IRS rules governing charitable organizations, particularly concerning partisan voter registration and the endorsement of candidates based on policy positions.
"Any reasonable reader will understand candidates who support those policies means Democrats," said Derek Ross, a California political law attorney, referring to the curriculum's promotion of policies like progressive taxation and universal healthcare. Ross added that conditioning voter registration outreach on a registrant's policy views is also problematic under IRS regulations.
Federal investigators are examining Siebel Newsom’s nonprofits, tax matters and other undisclosed activities. Getty Images
Chuck Walker, a retired IRS agent specializing in tax-exempt organizations, noted that while he could not comment on specific cases, any charity encouraging support for candidates with a particular political philosophy risks violating IRS rules. He explained that a statewide elected official appearing prominently in a spouse's nonprofit-funded productions, coupled with financial transactions between nonprofit and for-profit entities, could attract IRS scrutiny. Walker cited the 1989 American Campaign Academy case, where tax-exempt status was denied for an organization deemed to primarily benefit one political party.
The financial structure of Siebel Newsom's organizations also presents questions. Her for-profit company, Girls Club Entertainment, produces documentaries that are then licensed to the nonprofit Representation Project, where Siebel Newsom serves as paid CEO. The Representation Project subsequently sells educational screening packages to schools. IRS filings indicate that Girls Club Entertainment received approximately $3.7 million from The Representation Project between 2012 and 2023. Additionally, The Representation Project received at least $360,000 from PG&E, a utility company that later received a board seat and producer credit on one of its films.
The California Partners Project has received at least $4.3 million in behested payments, which are charitable donations solicited in the name of a public official. While such payments are legally required to be disclosed in California, critics view the practice as a form of legalized pay-to-play. The nonprofit's board includes individuals with close ties to Governor Newsom, such as a partner at his regular law firm and individuals he has appointed to state boards. Newsom's spokeswoman, Tara Gallegos, defended behested payments as a longstanding, legal, and transparent practice used by officials across parties.
The network of Siebel Newsom's organizations also overlaps with many of Governor Newsom's political and financial allies, including contributions from members of the Pritzker family and ties to the Getty family, who have supported Newsom's business and political ventures. Prominent figures like Reese Witherspoon, Melinda French Gates, Hillary Clinton, and Nancy Pelosi have also supported The Representation Project.
While there is nothing inherently improper about a governor's spouse operating nonprofit organizations or the practice of behested payments, critics argue that the interconnectedness of the boards, donors, curriculum, contracts, and financial relationships suggests the organizations may function more as extensions of a political operation rather than independent charities. Federal investigators will ultimately determine if any activities have crossed legal lines.