Embroiled in controversy, DeSantis’ Hope Florida Foundation could lose tax status, legislator warns

A top Florida Republican warned Thursday that the Hope Florida Foundation could lose its tax exempt status if two $5 million payments the foundation made to other nonprofit groups wound up with a political committee opposing legalization of marijuana.

Rep. Alex Andrade made the remarks to board members during a virtual meeting Thursday. He also said he was glad the foundation board was addressing its delinquent paperwork, including making its IRS form 990 available for the public to review.

“But going forward right now, the circumstances, 80% of all the funds you’ve received, more than that, that you’ve dispensed, were used for political purposes, and I believe that will jeopardize your 501C3 status if you as the board do not take the proper steps to recoup those funds,” the Pensacola legislator said.

Andrade’s warning came during a rancorous public comment portion of the meeting in which people on the chat broadcast Nazi symbols, racial slurs and pornography. Unable to control the flow of images or sounds being shared, the foundation board agreed to recess. The board was scheduled to reconvene late Thursday.

The board posted a link on its website apologizing for the disruption and said the Department of Children and Families was “actively working with law enforcement on the incident.”

Following the abbreviated meeting, Florida Democratic Party Chair Nikki Fried called on the Department of Justice to investigate. She also urged Jack Campbell, the state attorney for the Tallahassee area, who is a Democrat, to do the same.

“I do think that it’s appropriate for Jack Campbell to start looking into some of these actions,” Fried said in a virtual press conference with reporters, adding that she had not personally spoken to him about it.

Hope Florida is an initiative launched by First Lady Casey DeSantis to help steer people off public assistance programs using state agency staff. Hope Florida Foundation is a not-for-profit direct support organization for the Department of Children and Families, which helps to administer the Hope Florida program.

Hope Florida Foundation’s finances have come under scrutiny following a Miami Herald/Tampa Bay Times report that it paid $5 million apiece to two organizations that then contributed to Keep Florida Clean, a political committee that worked to defeat a proposed constitutional amendment to legalize marijuana.

The $10 million payment to the two groups mirrors the amount the Hope Florida Foundation received from health care giant Centene as part of a settlement regarding overpayment of Medicaid pharmacy benefits and services.

Gov. Ron DeSantis has cried foul, accusing the House of working with the liberal media to smear the first lady’s reputation as she potentially prepares for a gubernatorial run to replace her husband, who is being forced out of office due to term limits.

Leading the financial review in the House is Andrade, who has held two meetings over the last two weeks with high ranking Hope Florida officials and agency heads.

More Hope Florida resignations

Hope Florida Foundation president Joshua Hay kicked off Thursday’s meeting by announcing that Jake Farmer, a registered lobbyist for Walgreens Co., had resigned from the board of directors.

Hay did not disclose when Farmer resigned and the Department of Children and Families didn’t immediately respond to Florida Phoenix’s request for his resignation letter. Farmer did not return Florida Phoenix’s phone call asking about his resignation.

Hay announced that Wendy Nissan had been appointed to the board of directors.

The meeting was interrupted before the board could publicly discuss its IRS 990.

The form shows that two state-contracted Medicaid managed care plans that were vying for lucrative new contracts made contributions to the Hope Florida Foundation. The contracts are the largest of their kind for the state and, according to the House of Representatives, the managed care plans will be paid $143 billion over the next six years to provide health care to the state’s poor, elderly, and disabled who rely on Medicaid for their health care.

The tax form shows that the Hope Florida Foundation received contributions from Simply Healthcare Plans and Centene of $98,408 and $95,223, respectively.

The state Agency for Health Care Administration has announced plans to award new contracts in April and a second round of announcements in July. The decisions expanded statewide Simply Healthcare’s footprint in the Medicaid managed care marketplace. The new contracts contain a requirement for the plans to work with the Hope Florida program and report information about their members to Hope Florida.

The IRS 990 form doesn’t list the dates contributions were made, only the time frame.

Headline-grabbing week

The board meeting capped a week of headlines for the foundation, a direct service organization for the Department of Children and Families as well as the Hope Florida program.

Hope Florida executive director Erik Dellenback is stepping down from his post as well as his position as chair of the Florida Faith and Community Advisory Council. Dellenback’s resignation was submitted in March and takes effect in May.

Dellenback, though, did not mention his resignation during a lengthy House budget committee meeting in which he testified along with Hay and Department of Children and Families Secretary Taylor Hatch. The resignation was first reported following the meeting.

Hay was accompanied by his own attorney at the House meeting. During his sworn testimony, Hay acknowledged that the Hope Florida Foundation had made mistakes by not filing its required paperwork. He also testified that he’s been working with Tallahassee attorney Mohammad Jazil on completing the paperwork.

Jazil, who frequently represents state agencies and advises Keep Florida Clean, was recommended to him by attorney Jeff Aaron, Hay told the House committee. Aaron is a Republican attorney who successfully defended the governor in the lawsuit filed by suspended Hillsborough County State Attorney Andrew Warren.

“Jeff Aaron connected you with Mohammad Jazil, the attorney for Keep Florida Clean, to help Hope Florida’s foundation in complying with the paperwork, to retroactively justify this payment. Is that what I am hearing right now? Members, I am sorry, I am a little flabbergasted at this revelation,” Andrade said at the meeting.

Florida Phoenix is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Florida Phoenix maintains editorial independence. Contact Editor Michael Moline for questions: info@floridaphoenix.com.

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This article appears in Apr 17-23, 2025.