Wallace's Family Foundation Gave Away Millions, But Not One Penny for His Own District

Scott Wallace's family foundation steered millions to anti-Israel, environmental, left-wing groups

Scott Wallace
Scott Wallace / Facebook
July 9, 2018

A wealthy Democratic congressional candidate's family foundation that was criticized for giving hundreds of thousands of dollars to anti-Israel groups has not given money to any organizations or charities located in the district he's seeking to represent, according to a review of his fund's tax forms.

Scott Wallace is running against Republican incumbent Rep. Brian Fitzpatrick in Pennsylvania's first congressional district. Wallace is the grandson of former vice president Henry Wallace and inherited a fortune after his grandfather's company sold for billions in the 1990s.

Members of the Wallace family established the Wallace Global Fund, a progressive foundation, as a means to "promote an informed and engaged citizenry, to fight injustice, and to protect the natural systems upon which all life demands." The fund hands out millions in grants each year and reported nearly $150 million in assets on its most recent tax forms. Wallace led the group along with his wife from the early 2000s until shortly before announcing his candidacy.

The Forward reported in May that the Wallace Global Fund had given $300,000 to a number of groups that promote the boycott, divestment and sanctions (BDS) campaigns against Israel, which may cause some awkwardness for his campaign as he is seeking to capture a seat in one of the most Jewish districts in the United States. The Republican Jewish Coalition poured $530,000 in an ad campaign to hit Wallace over the donations to the groups.

Wallace has maintained that the grants to the anti-Israel groups were made by another member of the fund and that he is "unequivocally pro-Israel, pro-peace, and pro-democracy." However, the fund had no more than five officers, directors, trustees, and foundation managers during the time the money was disbursed to the groups, with most of those individuals being Wallace and his family members, according to the fund's Form 990s.

Despite the Wallace Global Fund handing out millions in grants overall and disbursing hundreds of thousands to anti-Israel groups, it has given no money to organizations or charities located in the district Wallace is seeking to capture a seat, according to a review of the fund's tax forms going back eight years. Wallace, who was born in Bucks County, Pa., lived in Maryland and South Africa while running the fund before moving back to Pennsylvania to run for Congress.

The nearest place the fund disbursed money is the Community Environmental Legal Defense Fund, a far-left environmental group. At one point the group listed its address as a P.O. Box in Chambersburg, Pa. and then at a P.O. Box in Mercersburg, Pa., both hours outside the district.

The Wallace Global Fund has provided millions in donations to far-left groups such as environmental groups 350 org, Greenpeace, and ClientEarth. In addition to progressive organizations, the fund has also gives money to groups that work on issues such as ending female genital mutilation.

The fund also reports contributions to liberal "fiscal sponsor" organizations such as the Tides Foundation and New Venture Fund, entities where hundreds of millions of dollars in "dark money" flow through them before being passed to other liberal groups.

Wallace's campaign did not return a request for comment by press time.

Published under: 2018 Election