The military-industrial complex functions through a revolving door system, enabling retired military officials to transition seamlessly into high-paying positions with defense contractors. This pattern is also prevalent in NGOs and nonprofits, where government bureaucrats move into lucrative roles. These individuals exploit their insider knowledge and extensive connections to secure grants and push for policies that benefit them and the blob. This corrupt system creates conflicts of interest in policy-making, resulting in the excessive spending of taxpayer dollars and fostering an environment ripe for waste, fraud, and abuse.

Consider, for instance, Family Endeavors (EIN: 23-7223078), a non-governmental organization (NGO). Endeavors originated as the San Antonio Urban Council. Initially, it was a small, non-profit faith-based organization established in 1971 offering social services to low-income and disabled residents, established by local Presbyterian churches in San Antonio. Over time, it evolved into a federally funded NGO that provides services to veterans and their families.

During the Biden administration, the organization deviated from its original charitable mission as outlined in its Articles of Incorporation. It expanded its operations to manage unaccompanied alien minors and respond to COVID-19 emergencies. Like many nonprofits, Endeavor took advantage of the $500 billion in COVID-19 health and vaccination emergency response contracts, which were awarded without a competitive bidding process. This strategic shift resulted in federal grants and contract awards to Endeavor totaling $2.9 billion for the period from 2021 to 2023. Additionally, the organization received a $5 million Paycheck Protection Program (PPP) loan, which was later forgiven, raising questions about its necessity.

Between 2020 and 2023, Endeavor’s net assets skyrocketed from $15 million to an impressive $584 million. The organization oversees five subsidiary nonprofits, which have raised concerns about potential “structured finance abuse.” In 2021, Endeavor launched Reach Resilience (EIN: 87-1424761) to manage and invest its significant operating surpluses. Over three years, this initiative accumulated $355 million, with the stated goal of “enabling change and elevating humanity through efforts that restore dignity, nurture confidence, and empower perseverance.”

However, Reach Resilience’s ambiguous mission statement, combined with its considerable cash and investment holdings, raises concerns that these funds could be misused as slush funds.

Chip Fulghum, the former Deputy Under Secretary for Management at the Department of Homeland Security (DHS), joined Endeavors in 2019 and had a salary of $185,000 while at DHS. President Biden honored Fulghum with the prestigious Presidential Rank Award upon his departure. By 2023, Fulghum advanced to the role of CEO at Endeavors, where he earned an impressive compensation of $638,472, marking a 350% increase from his previous salary at DHS. Fulghum exemplifies a “policy entrepreneur,” utilizing his insider knowledge and connections to secure favorable treatment for Endeavors in obtaining grants and contracts making it a significant player among NGOs.

Andrew Lorenzen-Strait is a co-conspirator of Fulghum. He joined the NGO in 2021 as the Senior Director for Migrant Services and Federal Affairs, following his tenure as a senior official on Biden’s Presidential Transition Team. Lorenzen-Strait is a seasoned professional with eleven years of experience at U.S. Immigration and Customs Enforcement (ICE), where he served as the Deputy Assistant Director. While on the transition team, he operated Lorenzen-Strait Consulting Services, which had Endeavors as a key lobbying client.

As a former employee of ICE, he was prohibited from engaging with external organizations regarding ICE matters due to post-employment restrictions (5 CFR 2641.201). He resigned from Endeavors during a congressional investigation into his involvement in negotiating contracts with HHS for the organization. The Office of Inspector General (OIG) investigating Endeavors' $87 million no-bid contract and Lorenzen-Strait found:

ICE records indicated that Endeavors lacked experience in providing the services covered by the sole-source contract, including hotel accommodations and all-inclusive emergency family residential services.

Endeavor generates a significant operating surplus due to its windfall no-bid contracts. This surplus should be returned to the U.S. Treasury to promote accountability and fairness and guarantee that taxpayer funds are used appropriately. Many organizations like Endeavors operate without strict adherence to IRS regulations and maintain large operating surpluses. Only .1% of nonprofits face an audit by the IRS, and the agency has only twelve whistleblower case managers to investigate reports of misconduct.

DOGE should proactively establish a DOJ and IRS joint task force, leveraging the expertise of forensic accountants and cutting-edge AI technology, to reclaim excessive federal grants misappropriated by NGOs and nonprofits. This initiative is also crucial to uncovering fraud and enforcing the False Claims Act, which would hold nonprofits accountable through civil and criminal penalties. President Trump can swiftly launch this task force with an executive order, ensuring accountability and integrity and recovering hundreds of billions for the U.S. Treasury.

Bob Bishop is a resident of San Antonio and a forensic investigator and retired CPA.

Image: Free image, Pixabay license.