Investigative Report Uncovers Troubling Financial Practices and Lack of Programmatic Evidence at Prominent Civics Nonprofit

Washington, D.C. – On September 17, in a ceremony held within the historic confines of the National Archives building in Washington, D.C., Defense Secretary Pete Hegseth lauded the Foundation for Liberty and American Greatness (FLAG) for what he described as a monumental achievement in American education. The occasion marked FLAG’s announcement that it had reached 2 million children with civics education since its inception in 2016, a milestone praised by Hegseth, who underscored the critical importance of such efforts for the nation’s future. "I hope you understand how important this is," Hegseth stated, adding, "What we pour into the next generation will determine whether we keep our republic or not."

However, an extensive review of FLAG’s financial records, donor operations, and online donation network paints a starkly different and less laudatory picture than the celebratory event suggested. The investigation reveals a notable scarcity of evidence corroborating the nonprofit’s claims of widespread civics education provision. Furthermore, FLAG and its founder, Nick Adams, appear to have engaged in a series of questionable financial arrangements, including substantial payments to Adams and his mother that collectively accounted for more than half of the organization’s recent annual revenue. Compounding these concerns, a significant portion of FLAG’s fundraising has been generated through sweepstakes operations promising donors a chance to win $1,000,000, a prize for which FLAG’s internal records show no verifiable evidence of ever being awarded.

The Public Celebration and Official Endorsement

The National Archives event served as a high-profile platform for FLAG, highlighting its perceived impact within conservative circles and garnering significant political endorsement. Defense Secretary Hegseth, a former Fox News host and an initial member of FLAG’s advisory council, delivered a speech that was subsequently published on the Department of War’s official news portal, further solidifying the organization’s perceived credibility. This public commendation from a high-ranking government official provided a powerful validation for FLAG’s mission and operations.

FLAG’s founder, Nick Adams, an Australian-born conservative commentator and influential figure within the "Make America Great Again" (MAGA) movement, has meticulously cultivated political support for nearly a decade. His efforts culminated not only in the recent celebration but also in repeated public endorsements from former President Donald Trump. In March, Trump appointed Adams as the special presidential envoy for American tourism, exceptionalism, and values—a position reportedly created specifically for him after his nomination as ambassador to Malaysia encountered obstacles the preceding year. Trump has previously hailed Adams as one of his favorite authors, even penning a foreword for Adams’ 2024 book, "Alpha Kings," where he praised Adams’ "work ethic" and "moral responsibility." In a video message for FLAG’s 2023 annual gala, Trump further commended the nonprofit, asserting that "tens of thousands of teachers are being trained and hundreds of thousands of parents and grandparents are now standing up for our kids." He famously added, "It takes Nick from Australia to come and teach us about American greatness and to help us fight for our country. He’s an American now, and we’re very lucky to have him." These endorsements have significantly elevated FLAG’s profile and fundraising potential within the conservative ecosystem.

The Founder: Nick Adams’ Profile and Influence

Nick Adams, born Nicholas Adamopoulos, relocated to the United States from Australia in 2012. Since his arrival, he has emerged as a vocal advocate for the American political and economic system, carving out a niche as a conservative commentator and self-proclaimed "alpha male" influencer. Now 41, Adams has amassed a considerable following, boasting approximately 2.1 million followers on Facebook and 640,000 on X (formerly Twitter) across his personal pages. His media appearances are frequent, and he has authored several books, including "Retaking America: Crushing Political Correctness" and "Trump and Churchill: Defenders of Western Civilization," works that resonate strongly with his conservative base.

In 2016, Adams formally established FLAG, registering it as a nonprofit with the explicit mission of delivering high-quality civics education to K-12 students nationwide. The organization has produced various civics materials, such as "The Student’s Constitution," "The Student’s Declaration of Independence," and "The Student’s Federalist Papers," which are presented as "kid-friendly" adaptations of America’s foundational documents. By 2023, FLAG reported an annual revenue nearing $1.5 million, derived primarily from donations and merchandise sales. The organization’s website proudly declares, "Thanks to the support of 40,000+ grassroots patriots, over 1 million FLAG resources have been distributed in classrooms all across America."

To enhance FLAG’s standing and garner trust within conservative circles, Adams initially assembled an advisory council comprising prominent movement leaders. This council included Hegseth, then a Fox News personality; the late Charlie Kirk, founder of Turning Point USA; the late Edwin J. Feulner, founder of the Heritage Foundation; and Dennis Prager, the conservative radio host and co-founder of PragerU, another nonprofit dedicated to producing conservative educational content. This council has since been replaced by a board of directors, though the composition and independence of this new board remain subjects of scrutiny.

FLAG’s Stated Mission Versus Operational Reality

Despite FLAG’s grand claims of reaching millions of children and distributing over a million resources, the investigation found minimal concrete evidence to support these assertions, particularly in recent years. FLAG’s website invites teachers to request free classroom presentations from "certified FLAG Ambassadors," including Adams himself, alongside other guest speakers described as entrepreneurs, business leaders, and immigrants. While early records from 2016 and early 2017 show FLAG regularly posting photographs documenting visits to schools, a subsequent search revealed a significant decline in such documentation after that period.

Since its founding, FLAG’s annual revenues have grown substantially, from $68,000 in its initial year to $1.1 million in 2024. However, a detailed examination of the organization’s annual federal tax filings (Form 990s) reveals an alarming lack of expenditure directly attributable to its stated educational mission. With the exception of two line items in a 2017 filing—$26,925 for "Student’s Constitutions, Printing" and $5,670 for "Book Donations, Shipping & Supplies"—there is virtually no indication in the tax records of money being spent on schools, teachers, or educational distributors. Over the past six years under Adams’ leadership, the only documented activity that clearly aligns with an "educational" purpose is a 2020 video depicting Adams speaking at what was described as a teachers’ conference. This raises serious questions about the actual deployment of funds towards its primary charitable objective.

Financial Scrutiny: Compensation and Self-Dealing Concerns

While programmatic spending appears scarce, FLAG has proven to be notably lucrative for the Adams family. In 2024, Nick Adams (born Nicholas Adamopoulos) and his mother, Angelika Adamopoulos, collectively received $587,279 in compensation and benefits from FLAG. This figure represents a staggering 53% of the organization’s total revenue for that year, according to its federal filing. Angelika Adamopoulos received $201,861, including benefits, for her role as FLAG’s secretary. Alarmingly, in the same federal filing, FLAG responded "no" when the IRS inquired whether any officer or director shared a family relationship with another director or officer, a misrepresentation that could have legal ramifications. Angelika Adamopoulos did not respond to requests for comment.

Nonprofit law experts expressed significant concern regarding the disproportionate allocation of funds to Adams and his mother. Lloyd Mayer, a nonprofit law professor at Notre Dame Law School and a leading authority on tax-exempt organizations, commented, "The amount being paid, both in absolute dollar terms and as a percentage of the organization’s revenues and expenses, is very high." Mayer noted that Adams’ salary increases, though substantial, might not be a "clear violation" but rather a "yellow flag." Adams initially received no salary for FLAG’s first three years. His compensation began in 2019 at a modest $20,400, then steadily escalated to $411,209 in 2023, accounting for approximately 30% of the group’s total revenue that year. Angelika Adamopoulos became the first employee outside of Adams to receive a significant salary in 2024. According to federal filings obtained via ProPublica’s Nonprofit Explorer, no other employee received more than $5,000 from 2016 to 2024.

Mayer explained that the legal permissibility of such compensation hinges on whether FLAG’s board explicitly documented that the payments were intended to compensate Adams for his uncompensated or under-compensated service in earlier years. "Were they explicit in saying, ‘We’re not just paying you for this year; we’re paying you for your past service, which you were not fairly compensated for’?" he queried.

Furthermore, the IRS specifically asks nonprofits whether executive compensation was reviewed by independent individuals and if comparisons to similar organizations were used—standard safeguards against self-dealing and excessive private benefit. In all filings from 2017 to 2024, FLAG answered "no" to both questions. Philip Hackney, a nonprofit law professor at the University of Pittsburgh and a former IRS official, highlighted that the absence of such independent review itself could lead to legal exposure. "Technically, that can be an excess benefit transaction on its own," Hackney stated, referring to the IRS category that can trigger taxes on compensation paid to nonprofit insiders that exceeds fair market value.

FLAG’s separate financial report filed with the Florida Department of Agriculture and Consumer Services, where the organization is based, claims that 66% of its revenue is directed toward program service expenses. However, a closer examination reveals that the salaries of Adams and his mother, along with social media spending and travel expenses, collectively total $755,541. This amount constitutes 86% of the $878,208 allocated to "program services." While Mayer conceded that classifying such expenditures as programmatic is not automatically improper under federal law, noting that "education as a charitable purpose is a very broad category," he emphasized that the IRS primarily scrutinizes for "disguised personal spending," rather than merely "inflated spending."

This is not the first time Adams has faced scrutiny over personal expenses. In 2006, at the age of 22, while serving as a councillor in Ashfield, Australia, Adams was formally reprimanded by his fellow councillors for accumulating thousands of dollars in phone calls and taxi charges for personal use, which he claimed as council expenses. He subsequently repaid these charges following a formal investigation, as reported by the Inner-West Weekly, an Australian newspaper.

Blurred Lines: Personal Branding and Nonprofit Resources

The intermingling of Adams’ personal commercial interests with FLAG’s charitable mission presents another area of concern. FLAG’s online store features Adams’ personal books, including "Alpha Kings" and "From Mar-a-Lago to Mars," some marketed as signed copies for up to $40, alongside the organization’s purported educational materials. Notably, Adams’ book "Trump and Churchill" is prominently displayed on the front page of FLAG’s Shopify store, accompanied by language stating, "Proceeds from all sales go directly to promoting our mission and providing students and teachers with high-quality educational resources." This specific disclaimer is absent for his other personal book sales on the site, suggesting an inconsistent application of profit allocation.

Further blurring the lines, a photo posted by FLAG in September from a conservative women’s convention depicted Adams standing behind a table laden with copies of his personal books, displayed alongside FLAG-branded resources, with the organization’s banner prominently featured in the background. Adams’ books have also been advertised for sale on FLAG’s Facebook page, with links directing potential buyers to Adams’ personal website rather than FLAG’s e-commerce platform. Mayer cautioned against such practices, stating, "He’s free to market his books, but if he has a charity do it, that means it’s not really a charity anymore, in that respect. It’s not about public benefit—the private benefit to him overrides the public benefit." This commingling of personal business and charitable activity raises questions about the ethical use of nonprofit resources for private gain.

The Sweepstakes Controversy: Unpaid Prizes and Allegations of Fraud

Beyond the financial and programmatic ambiguities, FLAG appears to have operated a direct-mail sweepstakes program with significant irregularities. The vast majority of FLAG’s revenue originates from individual donors, much of which is generated through these sweepstakes, which have offered prizes as substantial as $1,000,000.

For years, FLAG has managed direct-mail sweepstakes campaigns under various names, including "Payout Decision" and "Winner Search Swps." Sweepstakes operations are primarily regulated at the state level, often requiring organizations to register and submit detailed reports to state officials. While not all states mandate this, Florida, where FLAG is registered as a charity, does. However, FLAG does not disclose any sweepstakes program in its federal tax filings, and an exhaustive search could not locate any official sweepstakes registration for the organization in any state.

Crucially, an examination of nine years of FLAG’s federal filings reveals no transaction consistent with a $1,000,000 prize payout. Philip Hackney emphasized that such a significant payment would be expected to appear on the organization’s public tax returns (Form 990s). "It should be an amount paid out at some point, and that would show up in a 990," he stated. Compounding this, at its financial peak in 2023, FLAG’s total assets amounted to approximately $512,000—roughly half the value of the million-dollar prize it had offered to donors.

Mayer warned that the absence of a documented prize payment carries severe legal implications. "If the promise is that someone will win $1,000,000 and no one ever does, that’s fraud," he asserted. "That’s lying to induce people to support you." Internal records from a mailing list exchange database, which track how organizations utilize donor mailing lists, indicate a strategic shift within FLAG. Notes in FLAG’s record as of July 2020 explicitly state that the organization was "not mailing much" through conventional fundraising channels and was "focusing on the sweeps side."

The sweepstakes operations have drawn formal complaints. In April 2024, a complaint was filed with the Better Business Bureau (BBB) against FLAG, alleging that its sweepstakes drawing deadlines had been repeatedly postponed. The complainant, a "retired senior citizen who happened to love this country," cited FLAG’s shifting timeline for a drawing originally scheduled from January 2022 through December 2024, which had, by then, been pushed to run from December 2023 through January 2025. This individual expressed a desire to be reimbursed for their "hard earned money." FLAG informed the BBB on May 6, 2024, that it had responded to the complainant, but the nature of that response remains undisclosed.

Broader Context: The Conservative Civics Movement

FLAG’s activities are set against the backdrop of a broader conservative movement championing civics education, particularly within the MAGA ideology, which advocates for a return to a specific interpretation of the country’s founding principles. Organizations like PragerU have seen their curriculum approved in at least eight states, while Turning Point USA has established Turning Point Academy, a network of private schools. FLAG, alongside these groups, is now part of the America 250 Civics Education Coalition, a partnership initiated by the U.S. Department of Education involving over 40 conservative organizations. This demonstrates the significant political capital and influence that such groups, including FLAG, wield within the current educational landscape.

Responses and Lack Thereof

Multiple attempts were made to obtain comments from Nick Adams regarding FLAG’s financial practices, sweepstakes operation, and educational programming; however, he did not respond to a detailed list of questions. A Pentagon spokesperson declined to comment on the allegations but reiterated Defense Secretary Hegseth’s continued support for FLAG. The White House press office also declined to comment on President Trump’s endorsements or Adams’ appointment. Angelika Adamopoulos did not respond to requests for comment. Cooper Rodenburg, the new CEO of FLAG, requested questions via email but subsequently did not provide any responses.

Recent Developments and Future Outlook

FLAG is preparing to mark its 10th anniversary with a gala event, offering tickets at $1,000, $5,000, and $10,000. Although Adams remains listed as FLAG’s founder on its website, he stepped down as CEO in March, around the time he accepted his State Department role to promote U.S. tourism. His successor, Cooper Rodenburg, is a recent graduate of Stetson University.

Since assuming the CEO role, Rodenburg has reportedly increased FLAG’s public activity, launching a TikTok account and a Substack newsletter, engaging with educational representatives, and speaking to groups such as the Shelby County Republican Women’s Club in Tennessee. A Substack post in April described FLAG, represented by Rodenburg and Adamopoulos, delivering founding documents to schools in Mississippi—one of the few specific programmatic activities documented by the organization in recent years, signaling a potential shift in operational strategy under new leadership.

Implications and Public Trust

The findings of this investigation raise critical questions about the transparency, accountability, and integrity of the Foundation for Liberty and American Greatness. The apparent discrepancies between its stated mission and documented expenditures, the substantial compensation paid to family members without independent oversight, and the lack of evidence for a high-value sweepstakes prize threaten to erode public trust in charitable organizations, particularly those operating within politically charged spheres. The implications extend beyond FLAG itself, potentially casting a shadow over the broader conservative civics education movement and the government partnerships it has cultivated. Donors, particularly the "grassroots patriots" and "retired senior citizens" who contribute their "hard earned money," rely on the assurance that their contributions are being used effectively and ethically for the stated charitable purpose. The allegations against FLAG suggest a significant breach of that trust.