by AZ Free Enterprise Club | Dec 21, 2025 | Opinion
By the Arizona Free Enterprise Club |
When people hear the phrase “left-wing political machine,” they probably think of local activist groups, paid protestors, and maybe even out-of-state wealthy progressive donors writing checks from afar. That mental model would be both outdated, oversimplified, and a major underestimation.
What operates in Arizona today is far more sophisticated and opaque. It’s best understood not as a movement (as the Left likes to brand themselves), but as a syndicate: multiple non-profits leveraging tax-deductible contributions to advance shared political goals through a permanent, year-round infrastructure.
Our newly released report, prepared in conjunction with the Arizona Liberty Network, examined the financial transactions between a consortium of non-governmental organizations (NGOs) operating in the Grand Canyon State, and illuminates just how far-reaching this system is…in Arizona, this liberal syndicate has its fingerprints on almost every lever of government.
A National Pipeline, Not a Local Movement
When examining the financing of the liberal syndicate, it’s important to note that virtually all of their funding comes from out of state sources. National, and in some cases multinational, donors and foundations are the primary sources of money. The NGO network also utilizes direct taxpayer subsidies through grants at the federal level.
Most of the individual donors and foundations bankrolling the syndicate provide their giving through a financial instrument known as a donor-advised fund (DAFs). A DAF lets wealthy progressives make tax-deductible contributions to a private fund, which then routs their donations to ideological nonprofits.
The other major trough of funding for the network comes from taxpayers in the form of government grants. The most notable federal agency providing these funds was USAID, which contributed over $50 million last cycle to progressive “philanthropic” organizations that then participate in political advocacy in Arizona.
From there, the money gets funneled through a web of intermediary organizations. Arabella Advisors (recently defunct and being replaced by Sunflower Services), Tides, and their affiliated funds dominate this space. These groups aggregate all that tax-advantaged and taxpayer-backed dollars, then redeploy them nationwide. Arizona is one of their preferred destinations.
Our report tracked more than 180 financial transactions, primarily from 2023 and 2024 alone. Altogether, the upstream sources pushed over $1.8 billion into the liberal NGO network, with nearly $200M ending up with organizations operating in Arizona.
So, this is no organic grassroots “movement.” It is a sophisticated syndicate: part tax-subsidized, part tax-advantaged, and built to operate year-round…
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by Staff Reporter | Dec 17, 2025 | News
By Staff Reporter |
Wealthy leftists outside the state are paying big money to deepen the blue in Arizona.
An investigative report by the Arizona Free Enterprise Club (AFEC) and AZ Liberty Network (AZLN) documented the way national organizations are funding to strengthen Democratic politics in Arizona: Donor Advised Funds, dark-money intermediaries, and teachers’ unions.
AFEC and AZLN found the flow of funds totaled over $1 billion, at least.
Per the report, these tax-advantaged funds don’t arrive in Arizona directly. The millions change hands between different organizations before coming into the state, sometimes multiple times, effectively turning the money dark.
“Money enters the system tax-free, travels invisibly, and reemerges as ‘local’ influence with national fingerprints erased,” reads the report. “The result is a tax-advantaged, publicly underwritten, and union-fueled political machine that dwarfs traditional party structures, and it has reshaped Arizona’s civic landscape. It is not organic, spontaneous, or homegrown—it is manufactured, calculated, and imported, creating an institutionalized system of progressive infrastructure.”
The money flow begins with what the report calls “Upstream Sources.” Two cost-saving vehicles make the funding flows a reality: tax-advantaged Donor Advised Funds (DAFs) and direct taxpayer subsidization available through federal grantmaking. The former includes funds like Fidelity Charitable, Silicon Valley Community Foundation, and Rockefeller Advisors. The latter vehicle largely operates through USAID. This agency gave the Tides Center $25 million to combat “misinformation.”
In 2024, the report found the Upstream Sources spent over $33 million in Arizona in non-federal races — a key year for determining which party would control the state legislature.
Altogether, Upstream Sources sent over $1 billion to organizations that acted as intermediaries — “Intermediary Organizations” — such as Sunflower Services (until recently, Arabella Advisors), Tides Nexus, and networks backed by billionaires George Soros or Hansjörg Wyss. Soros and Wyss also act as Upstream Sources.
From there, these funds finally make their way into Arizona. Top recipients that received millions include One Arizona, LUCHA, ACE, Chispa, Arizona Mirror, and the Copper Courier: the “Arizona Groups,” per the report.
The report alleged that the last two nonprofits listed, Arizona Mirror and Copper Courier, are news sites run by “Democratic operatives.”
Arizona Groups spent over $7 million to support down-ticket legislative Democrats, and nearly $5 million against the Republicans.
Further on the report mapped out how teachers’ unions fund local political action committees to influence Arizona races.
“These taxpayer-funded transfers, ostensibly for professional development or services, ultimately help free funds to support the same partisan infrastructure advancing the Left’s political objectives across Arizona,” stated the report.
Additionally, the report noted that the Arizona Education Association shares its headquarters building with other progressive organizations, such as One Arizona.
AFEC’s press release on the report interpreted the flow of funds as national influencing of local issues.
“This isn’t activism, it’s a professional, tax-advantaged political operation designed to look local but controlled from afar,” stated AFEC. “Arizona isn’t changing — it’s being engineered. Conservatives need a clear roadmap, strong counter-infrastructure, and strategic engagement to protect the state’s future and preserve local control.”
AFEC President Scot Mussi told “Winn Tucson” that the report was inspired by the USAID scandal around the time of President Donald Trump’s inauguration. That prompted curiosity about the origins of funding for Arizona’s major progressive political organizations.
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