NEW: Fundraising Giant ActBlue ‘On Brink Of Implosion’ Amid Investigations, Resignations

ActBlue, the dominant fundraising platform for Democratic candidates, is experiencing unprecedented turbulence as leadership resignations and Republican-led investigations put its future in question. At least seven high-ranking officials abruptly stepped down in recent weeks, triggering deep concerns about the organization’s stability ahead of a crucial election year.

The nonprofit fundraising platform facilitates donations for Democratic candidates, progressive organizations, and left-leaning causes in the United States. It was founded in 2004 and allows individuals to contribute to political campaigns and advocacy groups through its online platform.

The platform has served as a conduit for donations, processing contributions and forwarding them to the designated candidates or organizations. Because of its ease of use and widespread adoption among Democratic campaigns, ActBlue became a powerful tool for grassroots fundraising, helping candidates and causes raise billions of dollars. It operates as a political action committee (PAC) but does not directly donate to candidates—it simply processes and channels funds from individual donors.

However, the departures come at a precarious time for ActBlue, which has been instrumental in raising millions for Democratic campaigns. Now, the organization is not only dealing with internal shake-ups but also heightened scrutiny from congressional Republicans.

Lawmakers have introduced measures aimed at increasing transparency in online political donations—proposals that Democrats warn could severely weaken the fundraising powerhouse.

Adding to the turmoil, reports indicate that at least one remaining legal adviser at ActBlue has alleged internal retaliation, further fueling speculation about internal discord. The sudden leadership exodus and claims of internal conflict have left party insiders questioning how the group will manage its role in the coming election cycle.

Chicago, Illinois, August 19, 2024: President Joe Biden and Vice President Kamala Harris at the Democratic National Convention.

The timing of these exits has caused concern among Democratic circles, with strategists worried about the potential long-term effects. ActBlue has long served as the backbone of digital Democratic fundraising, providing candidates with a crucial financial lifeline. However, with its leadership in flux and external pressure mounting, its ability to maintain that role is now uncertain.

Last week, two unions representing its employees sent a scathing letter to the board of directors, listing the seven officials who had left. The letter pointed to an “alarming pattern” of departures that was “eroding our confidence in the stability of the organization” according to The New York Times.

“Like many organizations, as we undergo some transition heading into this new election cycle, we are focused on ensuring we have a strong team in place,” said Megan Hughes, an ActBlue spokeswoman. “We greatly appreciate the contributions of our incredible team members and remain deeply committed to the success of our organization and our mission to enable grass-roots supporters to make their voices heard.”

A letter from the ActBlue unions, which had not been previously reported, details a wave of senior staff departures that began on Feb. 21. According to the letter, which three individuals confirmed as authentic to The Times, ActBlue’s customer service and partnerships directors—both longtime employees with over a decade at the organization—left the same day.

Alyssa Twomey, vice president of customer service, announced her resignation, saying she needed a reset after 14 years. She was followed by several senior officials, including the associate general counsel, assistant research director, chief revenue officer, and a longtime engineer.

Amid the departures, Zain Ahmad, the last lawyer in ActBlue’s general counsel’s office, had his email access cut off and internal messages deleted. He later warned of retaliation policies, prompting the staff unions to call for an external investigation into CEO Regina Wallace-Jones.

Some Democrats fear this is part of a larger effort to dismantle the party’s fundraising infrastructure, especially as tensions between ActBlue and major campaigns, including former President Joe Biden’s have surfaced in recent years.