NC Nonprofit Under Investigation for Ethics & Lobbying Violations

North Carolina state investigators are examining potential violations of ethics and lobbying laws linked to a policy-focused nonprofit, Greater Carolina. The inquiry, requested by Wake County District Attorney Lorrin Freeman in September 2025, centers on trips to Kentucky bourbon distilleries in 2022 and 2024 attended by North Carolina lawmakers and lobbyists.

Investigation Triggered by Transparency Concerns

The probe follows a complaint filed in August 2024 by Carolina Forward, a progressive advocacy group, alleging that Greater Carolina misused its nonprofit status and circumvented state regulations regarding gifts to public officials. Carolina Forward’s executive director, Blair Reeves, claims the organization facilitated “covert and unreported lobbying” through luxury events.

Did You Know? Greater Carolina is organized as a 501c4 social welfare organization, meaning its primary objective, under federal tax law, must be the promotion of civic good.

Focus on “Dark Money” and Lobbying Activities

Reeves’ complaint highlights concerns about “dark money” groups – organizations exempt from certain donor disclosure requirements but still subject to some reporting rules. He alleges Greater Carolina failed to meet these obligations. The organization’s stated mission, according to tax documents, is “to ensure North Carolina embraces the policies necessary to maintain and support our status as one of the best states in the nation for business and free enterprise.”

However, Reeves alleges that Greater Carolina functioned as a conduit for unlimited contributions from alcohol and gambling interests to influence a powerful lawmaker, former state Rep. Jason Saine, R-Lincoln County, who resigned in 2024. The complaint alleges Greater Carolina raised and spent $1.5 million without a clear accounting of its use.

Allegations of Undisclosed Funding

The investigation includes scrutiny of a Kentucky event allegedly funded by Diageo, a multinational alcoholic beverage company with registered lobbyists in North Carolina. Previous reports indicated the 2024 trip drew attention due to allegations of inappropriate behavior by attendees, which the group dismissed as an overreaction, characterizing the trip as a fundraising event with donor access to lawmakers.

Expert Insight: The allegations center on the potential for undisclosed financial influence in the legislative process. 501c4 organizations operate in a complex regulatory environment, and the line between legitimate advocacy and improper lobbying can be difficult to define, particularly when donor information remains private.

Reeves expressed cautious optimism about the investigation, noting the length of time it took for the District Attorney to request the SBI’s involvement. Representatives of Greater Carolina have not yet responded to requests for comment.

Frequently Asked Questions

What prompted the investigation?

The investigation was prompted by a complaint filed by Carolina Forward in August 2024, alleging violations of state ethics and lobbying laws by Greater Carolina related to trips to Kentucky bourbon distilleries.

What are the specific allegations against Greater Carolina?

Carolina Forward alleges that Greater Carolina improperly used its nonprofit tax status, evaded the state’s ban on gifts to public officials, and facilitated “covert and unreported lobbying” through luxury events.

Who is Jason Saine and what is his connection to the investigation?

Jason Saine was a state Representative for Lincoln County and a lead budget writer. Carolina Forward alleges Greater Carolina improperly used its nonprofit status to financially support Saine, who resigned from the legislature in 2024.

What impact this investigation will have on North Carolina’s political landscape remains to be seen, but it could lead to increased scrutiny of “dark money” groups and lobbying practices. It’s possible the SBI’s investigation could result in further inquiries into campaign finance and ethics compliance, or it may find no evidence of wrongdoing.