Tuesday, July 18, 2023




Documents Provide Rare Glimpse Into How Arabella Advisors Exerts Centralized Control Over a Vast Left-Wing Advocacy Network

The Student Experience Research Network sounds innocuous enough. The organization says it exists to "advance the research, relationships, and capacity necessary to build an education system in which every student experiences respect as a valued person and thinker."

In reality, the group funds research with the goal of promoting DEI practices in education and partners with other left-wing organizations to promote "inclusive mathematics environments" and push universities to abandon standardized tests. Earlier this month, the Student Experience Research Network took a victory lap after the University of California system said it would toss out the SAT in its admissions process.

The Student Experience Research Network and hundreds of other left-wing activist groups like it are controlled from the top down by Arabella Advisors, a for-profit consultancy that plays an integral role in Democratic causes, fueled by donations from billionaires including George Soros and Pierre Omidyar. The company, which distributes billions to Democratic pet projects, has established five tax-exempt nonprofit groups that pay Arabella a hefty fee—ostensibly for back-office work—and in turn operate a vast array of left-wing advocacy groups including the Student Experience Research Network.

In fact, the Student Experience Research Network’s ostensible employees don’t even work there. They are employees of an Arabella offshoot, the New Venture Fund. The average citizen would have no idea who’s pulling the strings.

This is the first of two reports based on internal Arabella documents obtained by the Washington Free Beacon. They provide a rare window into the inner workings of the Left’s dark-money network, revealing just how centrally controlled a vast swath of activist organizations are by a central clearinghouse based in the nation’s capital—as well as the lengths to which Arabella’s leaders go to disguise that control and create the illusion of grassroots political activism.

This is hardly the sort of relationship that Arabella and two of its offshoots, New Venture Fund and the Sixteen Thirty Fund, described to the IRS when seeking tax-exempt status.

The agency challenged New Venture Fund when it first applied for that status in 2006, over its obvious conflicts of interest with Arabella. At the time, Arabella founder and sole owner Eric Kessler served as both New Venture Fund’s chairman and president, and the New Venture Fund proposed paying Arabella a 5 percent overhead fee to handle administrative tasks. Arabella’s current ownership is unclear: It is owned by a Delaware business called Arabella Acquisition, LLC, which doesn’t disclose its ownership.

The IRS had concerns that New Venture Fund didn’t seek competing bids for the contract and that Kessler would reap illegal profits from his own charity. But the feds ultimately relented, granting the fund nonprofit status after Kessler claimed New Venture Fund’s contract with Arabella would last only a year, or until New Venture Fund could run its own human resources department.

"The Advisors are providing management and administrative support services until such time as the Organization has sufficient financial resources to make the operation of its own back office cost-efficient," New Venture Fund told the IRS. "Further, the Agreement is anticipated to be temporary and, indeed, only has a one-year term. As soon after this period as the Organization has adequate funding, it would no longer require the services of the Advisors."

Suffice it to say, the services are still flowing. What is true for the Student Experience Research Network is also true for hundreds of other activist groups, including Stop Deficit Squawks, Americans for Tax Fairness, the Institute for Responsive Government, Defend American Democracy, Fix our Senate, the Voter Engagement Fund, the Scholarly Publishing and Academic Resources Coalition, and hundreds of other groups—they are controlled by the Democratic elites who staff Arabella Advisors.

"If the New Venture Fund anticipated their agreement with Arabella Advisors to only be temporary when seeking a tax exemption, why has this arrangement continued for nearly two decades?" said Americans for Public Trust executive director Caitlin Sutherland. "For Arabella to collect over $200 million in fees for a ‘temporary’ agreement warrants a second look from the IRS."

Arabella’s five funds serve as fiscal sponsors of the network’s pop-up groups, organizations that exist for a brief period and then disband, often rallying support for or opposition to a particular political objective. Fiscal sponsorship is a unique arrangement that allows the initiatives to operate as nonprofit entities without disclosing their board members and obfuscates the sources of their revenue, expenses, or to whom they distribute grants. From protest movements to lobbying, if there is a new liberal pet cause, there is usually an Arabella group to advocate on its behalf.

Some of Arabella’s more prominent pop-up groups, such as Demand Justice, end up breaking away from the network and establish themselves as independent nonprofits. Others, such as Kansans for Secure Elections, SoCal Healthcare Coalition, and Justice March exist for a brief period and then disband.

Arabella’s former CEO, Sampriti Ganguli, has described the company as a humble business that provides human resources, accounting, and legal guidance to clients. However, the New Venture Fund’s employee handbook, obtained by the Free Beacon, paints a different picture of centralized control.

It reveals that Arabella controls New Venture Fund and its various pop-up groups with management teams of Arabella employees.

"NVF’s board of directors has hired Arabella Advisors, to provide staffing and management services," the handbook states. "Arabella Advisors provides support to NVF projects via dedicated oversight by a managing director (MD), an account manager (AM), accounting and financial services, and human resources support."

The account manager serves as the "first point of contact at NVF for all transactions and inquiries related to the project," according to the handbook. In some cases the manager has a team of Arabella employees assisting in the operations of a pop-up group.

Those teams, including the manager, are considered contractors. Therefore they are hidden from IRS disclosure forms and not listed as staff members of New Venture Fund or its pop-up groups.

New Venture Fund’s pop-up groups do not operate within typical nonprofit parameters outlined by federal law. They are effectively departments of the New Venture Fund and each of their employees are on the fund’s payroll. That means a group like the Student Experience Research Network or the Institute for Responsive Government doesn’t have its own employees, but rather, New Venture Fund employees under the guise of the Institute for Responsive Government. The same goes for the Compassion Project, the Alaska Venture Fund, the Healthy Voting Project, and countless other New Venture Fund "pop-up" groups.

IRS does not require New Venture Fund to report how many pop-up groups operate under its wings, let alone the names of the groups or how many of its employees work at each initiative. The fund employed 986 people in 2021, according to its tax return that year.

And the staff of New Venture Fund’s pop-up groups are prohibited from discussing their ties to the broader network, according to the fund’s employee handbook, which, according to the document’s metadata, was prepared in April 2019 by Arabella senior director Gideon Steinberg.

"In general, only staff with designated authority may represent NVF or its projects externally," the handbook states. "NVF staff should always clearly state the project they are representing and not imply that they are representing all of NVF unless explicitly authorized to do so."

New Venture Fund does not hide the ball from its employees. The handbook refers to itself as well as the network’s other funds—the Sixteen Thirty Fund, the Hopewell Fund, and the Windward Fund—as "managed organizations," each of which is overseen by a team of Arabella staffers.

The benefits of Arabella’s centralized control over the network are made clear to New Venture Fund employees. With Arabella in control, it can "coordinate collaborative initiatives between donors" and gain access to "expert philanthropic strategy development, execution, and evaluation support services."

In practice, this means Arabella can shuffle around big money between its funds, and it does: The network’s five funds passed a combined $189 million between themselves those two years, according to their tax returns.

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Acquitted Yale student can sue rape accuser for defamation: court

A former Yale University student who beat back rape accusations can sue his accuser for defamation, the State of Connecticut Supreme Court ruled recently.

Saifullah Khan’s lawsuit can proceed after the court ruled on June 27 that the former Yalie, who was expelled, can sue his accuser because the university’s sexual assault proceedings did not resemble actual judicial procedures.

The ruling comes after the 2nd U.S. Circuit Court of Appeals asked the Connecticut judiciary to weigh in on Khan’s claims and the applicability of the state’s “absolute immunity doctrine,” which generally protects witnesses and accusers from civil action for statements made during judicial proceedings.

Khan defeated the criminal charges. At the time, juror Diane Urbano told The New York Times that there was “sufficient doubt on every charge,” therefore, “we came to the verdict we did,” as The College Fix previously reported.

“Khan asserts that, if absolute immunity is afforded to testimony provided in proceedings such as that conducted by the UWC, individuals who are falsely accused will be left with no recourse or protection against malicious and defamatory allegations,” the court wrote of the accusations Khan faced in 2018, following “consensual sexual intercourse” in 2016.

As The Fix previously reported:

On Halloween 2015, Khan met up with a female student who had been drinking. The two made their way back to her room, where she testified she passed out, only to allegedly find Khan having intercourse with her when she awoke. Arguing she was too drunk to consent, she said she was surprised to wake up in the morning naked with used condoms on the floor.

Khan said that the woman had taken her own clothes off and initiated sexual activity. In court, his attorneys provided a security camera video of the two walking to the room together, arm-in-arm, which one juror said convinced him that the accuser may not have been as drunk as she later claimed.

The court wrote in its opinion:

Those accused of sexual assault in the higher education context often face life altering and stigmatizing consequences, including suspension or expulsion, criminal referrals, lack or revocation of employment offers, loss of future academic opportunity, and deportation. In the face of these consequences, we must acknowledge that the accused’s right to fundamental fairness is no less important than the right of the accuser or the larger community to achieve justice.

The University-Wide Committee on Sexual Misconduct “did not meet the conditions necessary to be considered quasi-judicial. Consequently, Doe is not entitled to absolute immunity.”

Khan also won on his argument that his accuser is not entitled to “qualified privilege.”

The court opinion stated:

In this case, Khan alleged in his complaint that Doe made false accusations for the sake of trying to expel Khan as part of a larger political movement and personal vendetta. Khan asserts that Doe made romantic advances toward him. He further alleges that, at first, she told a campus health care worker that she had engaged in consensual unprotected sex. Khan contends that Doe reported rape to her friends and, ultimately, to the Title IX coordinator only because she was ashamed of her sexual advances and encouraged by the larger political movement waged against Khan. Specifically, Khan cites in his complaint how, despite a jury’s dismissing Doe’s allegation and finding Khan not guilty of criminal sexual assault charges, more than 77,000 people signed a petition protesting Khan’s readmission to Yale.

“On the basis of these assertions, which must be accepted as true for the purpose of reviewing Doe’s motion to dismiss, a reasonable inference could be drawn that Doe knowingly fabricated claims of sexual assault,” the justices wrote.

“Khan has alleged sufficient facts in his complaint to defeat Doe’s qualified privilege at the motion to dismiss stage,” the justices concluded.

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Australian universities are failing: James Allan, in conversation with Will Kingston

James Allan is an academic unicorn – an openly conservative professor at a prestigious Australian university. In this wide-ranging conversation, James paints a picture of a tertiary sector that simply isn’t making the grade.

Will Kingston: James, imagine a bright kid has just finished high school and comes to you for advice. He doesn’t want to do anything that legally requires him to get a university degree. Would you nonetheless recommend that he goes to university?

James Allan: It’s a hard question. We live in a world of credentials and Australia is about the worst of the ‘credentialed places’ so, in a sense, going to university is providing you with a credential that opens doors. But I do think people who went to university 20 years ago have no clue what they are like today. Whilst it’s very difficult to get to the top of any career without going to university (entrepreneurs being a notable exception), you must go in with your eyes open.

WK: What exactly should that student have his or her eyes open for?

JA: Viewpoint diversity, or the number of conservative academics in universities, is collapsing. We know this from looking at the donations to political parties – it’s public information in the US. Just look at places like Yale Law School or Harvard, and the numbers are getting more and more skewed. Outside of the Ivy League it’s even worse.

And it’s just as bad in Australia. There are whole departments [that are exclusively left-leaning]! Do you think there are many supporters of Tony Abbott or Peter Dutton or the Coalition more generally in a Women’s Studies department, or an Aboriginal Studies department, or a Sociology department? Even Law is massively skewed. You’ll find the odd tax lawyer who sits in the closet and votes Coalition, and that’s largely it. Heck, you can count the number of law professors in this country who teach constitutional law and are against the Voice on one machine operator’s hand. And we have over three dozen universities.

WK: Is this really a problem? What’s the ‘first principles’ argument ideological diversity amongst academics?

JA: The old-fashioned idea was, you go to university and you get exposed to ideas that you don’t agree with and that you’ve never encountered before. This is the John Stuart Mill view of free speech – you get closer to the truth via a cauldron of competing ideas. Today, many people on the left just do not accept that. They think some views have to be ruled out because people are weak and stupid, and if they hear those ideas they’ll inevitably be seduced by them. Mill thought that through hearing views you don’t agree with, you will strengthen your own arguments even when you conclude you were correct all along.

The other reason is that the so-called ‘expert-class’ has shown itself to be completely useless of late. They’re getting everything wrong. I was a huge ‘lockdown-skeptic’, and the results coming out of Sweden have demonstrated that the expert doctors were to a large extent useless. But even worse, whilst they were being useless, they were simultaneously trying to shut down the views of genuinely credible people like Sunetra Gupta or Jay Bhattacharya. Just look at Sweden’s cumulative excess death tally since the start of the pandemic till now. Better than ours and the gap is widening by the day. And Sweden did not close any small businesses or schools or weaponise the police or censor unfashionable sceptical views.

WK: Does the grants process exacerbate this problem?

JA: Absolutely. You have this big machinery in universities. If you’re a historian or if you’re a political scientist, you are judged by grants. Now think about how crazy this is! You wouldn’t buy a car based on which car manufacturer got the most government money. You would think, ‘My God this car manufacturer needs huge dollops of taxpayer aid!’

And the only people who get promoted are people who are good at getting grants. So if you want to write in favour of traditional marriage, say, or in any sort of conservatively leaning way, you have virtually zero chance of getting a grant. This allows universities to say to a conservative that they’re not promoting you because you aren’t being awarded grants, not because you are conservative. The roadblock is indirect, not direct. One of the things we need to do outside of the ‘hard sciences’ is just end all grants. They are inefficient, deliver near-worthless results and hurt only one side of the political divide. You could save a fortune and it wouldn’t affect the quality of universities at all.

WK: A further problem appears to be that most universities aren’t just ambivalent towards hiring lecturers who have had ‘real world experience’, they are actively hostile to the practice. Fair?

JA: In law, I’ve always thought you want some people with ‘practitioner experience’ and that’s what law schools used to be like. They’re still like that in a lot of the top US and Canadian schools. The problem here is the ‘one-size-fits-all’ on steroids approach. Australia is terrible in this regard. Everything has to run on the ‘science model’, and in the science model, all the people who are at the top have doctorates. It doesn’t matter to university administrators that law is different and that you have the smartest law students going off to clerk at the High Court or become top barristers or win Rhodes Scholarships. If any of these people want to come back and teach law they still have to get a doctorate. Not true in North America. True here. This is credentialism gone mad. Australia is crazy in this way in how they expect a law school to run the way a physics department does.

WK: This ‘one-size-fits-all’ approach is driven by administrators, so let’s examine them. You once said that a moderately numerate Year 11 student could do the job almost as well as most of Australia’s Vice-Chancellors. Expand.

JA: I stand by that! Australia has the highest-paid university Vice-Chancellors in the world. VCs at the top-eight Australian Unis are making upwards of $1.4 or $1.5 million. The army of DVCs make over half of that again. Don’t you think it’s weird that our VCs are making double or triple what the President of Harvard is making? We have these enormous bureaucracies that are incredibly highly paid and they enforce this rigid bureaucratic and for that matter political orthodoxy. For example, I think ‘welcome to and acknowledgement of country’ rituals are patronising, condescending virtue-signalling. Full stop! No one ever says, ‘I stole your land so come and take my house!’ But, you simply couldn’t get a uni administration job unless you’re prepared to mouth those words on a daily basis. But hey, if you don’t stand up for the national anthem, you’ll probably be applauded for taking a stand… Well not literally. You get my point!

WK: You’ve been teaching university students since 1989. How have they changed over that time?

JA: I’ve taught all over the world, and something which we often forget is how different university life in Australia is compared to other parts of the Anglosphere. In the US, Britain, Canada, and even New Zealand, the vast majority of people send their kids to a university away from their home. In Canada, if you grow up in Toronto, odds are you go to university somewhere else. In Britain, you leave high school and you move into residence somewhere and receive the benefit of learning what it’s like to be an independent person. In Australia, if you’re from Sydney and you’re a top student, you go to a certain university, and if you’re not quite top you go to another, and then work your way down the hierarchy from there.

So, in addition to not giving students that broader life experience, it means there’s no competition between say, the University of Melbourne and the University of Sydney and the University of Queensland for the best students. That’s a real problem.

However, an indirect benefit of this is that the sort of radicalisation of the student body that has taken place overseas is not nearly as bad in Australia because all the students are living at home and just commuting in and out. They commute in for a couple of hours each day and then go home. It’s just harder to radicalise students who are rarely on campus! But by and large, I think it’s a shame. There is no campus life. If any of my students go on exchange for six months to North America or Britain they come back and say how much fun they had, and how different that it was to Australia. It doesn’t need to be this way.

WK: And I imagine Covid has just made this phenomenon even worse?

JA: Well, yes, the thuggish and illiberal governmental response to Covid made near on everything worse, including life on universities. It’s very clear from studies and surveys that students don’t like online learning and they don’t learn anything. They won’t turn their microphones on half the time. Zoom is a disaster for universities. It’s accelerated grade inflation, cheating, and lot more negative trends. And a separate but related point is students are no longer interested in learning, they are interested in the marks. And in a way, I don’t blame them. We put a lot more pressure on kids regarding jobs, and specifically the need for a job or internship whilst they are still studying.

I speak to kids on their first day of university who are already worried about what internship to get, or what grad role to get. It’s a prerequisite to a lot of the grad schemes now [an internship], but I think it would be better for students if we encouraged them to put less time into outside jobs and work and put more time into their studies. But that’s a hard message to sell when law firms are hiring students in their first year of university. And the funny thing is that a lot of the time these firms are getting students who aren’t terribly well-educated – in Australia (not Canada or Britain or the US) we cover noticeably less content because so many students have near-on full-time jobs on the side and so expectations of what they can read have to go down. And then the law firms complain about the quality of graduates. Look, it’s partly their fault!

WK: How would you fix the tertiary sector in Australia?

JA: Well the first thing I would do is get rid of grants for everything but the hard sciences. Do this and you completely defund research exercises that cost tens and tens of millions of dollars and just produce often meaningless information. A grant is an input. It’s money you get to produce something. What matters is the output! In Australia, we measure the input, not the output. Then I’d eliminate or defund the entire ‘Diversity, Equity and Inclusion’ bureaucracies from universities as some US States now are. These are ‘bullsh*t’ jobs that make universities worse, not better, and that deal in group rights and equality of outcome, not equality of opportunity.

Once I had sorted out that ‘low hanging fruit’, I’d send my entire fictional Liberal party room to Florida and tell them to copy what Ron DeSantis is doing in terms of standing up in the battle of ideas against illiberal Woke types. We need more courageous leaders like that in Australia, both inside and outside of universities.

WK: James, thanks for speaking to The Spectator Australia.

JA: Thanks Will.

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My other blogs: Main ones below

http://dissectleft.blogspot.com (DISSECTING LEFTISM)

http://antigreen.blogspot.com (GREENIE WATCH)

http://pcwatch.blogspot.com (POLITICAL CORRECTNESS WATCH)

http://australian-politics.blogspot.com/ (AUSTRALIAN POLITICS)

http://snorphty.blogspot.com/ (TONGUE-TIED)

http://jonjayray.com/blogall.html More blogs

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