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Nonprofit Coalition Requests Attorney General Action to Protect OpenAI’s Charitable Assets

The coalition’s letter to Attorney General Bonta outlines detailed concerns regarding OpenAI’s compliance with laws governing nonprofit assets and urges the Attorney General to initiate a robust investigation into OpenAI’s past and planned operations. The coalition argues that allowing OpenAI to proceed with its restructuring without appropriate safeguards would result in significant private gain at the public’s expense.

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Fred Blackwell is the president and CEO of the San Francisco Foundation and a member of the coalition calling for controls over OpenAI’s transition to a for-profit entity. Courtesy photo.
Fred Blackwell is the president and CEO of the San Francisco Foundation and a member of the coalition calling for controls over OpenAI’s transition to a for-profit entity. Courtesy photo.

Special to The Post

The San Francisco Foundation and Latino Prosperity, along with a coalition of California-based foundations and nonprofit organizations, formally requested Attorney General Rob Bonta take immediate legal action to protect OpenAI’s nonprofit charitable assets.

This request, submitted on Wednesday, is in response to OpenAI’s recently announced plan to restructure its operations into a for-profit entity, which could jeopardize its nonprofit assets — with value estimates at as much as $157 billion — that are intended for public benefit.

According to Wikipedia, “OpenAI is an American artificial intelligence (AI) research organization founded in December 2015 and headquartered in San Francisco, California. Its stated mission is to develop ‘safe and beneficial’ artificial general intelligence (AGI), which it defines as ‘highly autonomous systems that outperform humans at most economically valuable work.’”

Fred Blackwell, coalition member and CEO of San Francisco Foundation, emphasized the importance of maintaining the integrity of charitable assets: “OpenAI’s proposed conversion to a for-profit entity undermines the very foundation of what those assets were intended to support. It is imperative that we ensure these resources remain dedicated to the public good, especially in communities most vulnerable to the systemic inequities and harms associated with AI.”

“Failure to hold OpenAI accountable risks setting a harmful precedent that could jeopardize the integrity and stability of nonprofits, along with the foundational principles that protect charitable assets and their intended purposes,” said Orson Aguilar, CEO of LatinoProsperity and a member of the coalition. “We believe the Attorney General has a responsibility to uphold California’s charitable trust laws and ensure OpenAI follows the law.”

The coalition’s letter to Attorney General Bonta outlines detailed concerns regarding OpenAI’s compliance with laws governing nonprofit assets and urges the Attorney General to initiate a robust investigation into OpenAI’s past and planned operations. The coalition argues that allowing OpenAI to proceed with its restructuring without appropriate safeguards would result in significant private gain at the public’s expense.

Precedent exists for maintaining the public benefit of nonprofit assets through a for-profit conversion.

In the 1990s, California oversaw multiple successful nonprofit-to-for-profit conversions in the healthcare industry. Of note, Blue Cross of California transferred most of its managed care business to its for-profit subsidiary, WellPoint, in 1993.

Under regulatory pressure, Blue Cross agreed to fund two independent foundations, The California Endowment and The California Healthcare Foundation, with cash and stock valued at over $3 billion. Similarly, when Health Net, one of California’s largest health care and insurance providers, converted from nonprofit to for-profit status, it established the California Wellness Foundation to ensure continued public benefit with $300 million in cash and 80% of the stock of the new for-profit company.

These foundations continue to serve the public good with the assets of the original healthcare nonprofits.

Given the critical legal, ethical, and policy issues at stake with OpenAI’s proposed restructuring, the coalition calls on Bonta to initiate a robust investigation and promptly take all appropriate legal action.

The coalition demands that the Attorney General ensure that OpenAI’s conversion to for-profit operations does not move forward unless all its charitable assets are valued appropriately and reserved for public benefit, as has been the case with past nonprofit conversions in the state.

The coalition is committed to ensuring that technological advancements like artificial intelligence benefit all Californians and that strong oversight of nonprofit organizations is essential to maintain public trust and promote responsible innovation.

About Latino Prosperity

LatinoProsperity is a national nonprofit organization dedicated to closing the Latino wealth gap through national, state, and local advocacy. Our mission is to champion equitable economic policies that create opportunities and economically resilient Latinx communities. Our policy recommendations are based on research informed by experienced academic, community, government, and business leaders, and we are committed to advocating for their adoption and implementation. For more information, please visitwww.latinoprosperity.org 

About San Francisco Foundation

The San Francisco Foundation is committed to a Bay Area where everyone can get a good job, live in a safe and affordable home, and exercise their political voice. The foundation advances its work through grantmaking, partnerships with donors, policy advocacy, and impact investing.  

The letter was signed by: Fred Blackwell, president and CEO, San Francisco Foundation; Orson Aguilar, president and CEO, LatinoProsperity; Aarti Kohli, executive director, Asian Law Caucus; Mark Philpart, president and CEO, California Black Freedom Fund; Sabrina Smith, CEO, California Calls; Adam Briones, CEO, California Community Builders; Miguel Santana, president and CEO, California Community Foundation; Richard Tate, President and CEO, the California Wellness Foundation; John Kim, President and CEO, Catalyst California; Alex Tom, executive director, Center for Empowered Politics; Natalie Foster, president and founder, Economic Security Project; Cathy Cha, president and CEO, Evelyn and Walter Haas, Jr. Fund; Michelle Vilchez, CEO, Innovate Public Schools; Allison Scott, Ph.D, CEO, Kapor Foundation; Sonja Diaz, co-founder, Latina Futures 2050 Lab; Julián Castro, CEO, Latino Community Foundation; Shane Goldsmith, president and CEO, Liberty Hill Foundation; Mike Kubzansky, CEO, Omidyar Network LLC; Joseph Tomás McKellar, executive director, PICO California; Guillermo Mayer, president and CEO, Public Advocates; Paulina Gonzalez-Britto, CEO, Rise Economy; Cynthia Strathmann, Ph.D., Executive Director, Strategic Actions for a Just Economy; Catherine Bracy, Founder and CEO, TechEquity; Brenda Solorzano, President and CEO, The California Endowment; Don Howard, President and CEO, The James Irvine Foundation; Fred Sotelo, Chairman, Urban Leadership Development Institute; Joanna S. Jackson, President and CEO, Weingart Foundation

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Activism

Marin City Public Housing Residents Demand a Voice in County’s Renovation Plans

Representation has been a continuous struggle for the Residents Council, she said in an interview with the Post News Group.  In 2014, the tenants took the county to federal court over this issue, and prevailed, resulting in an MOU that was in effect from 2014 to 2024, said McLemore. “Now, they are not responding to our rightful requests to participate.  They are not giving us a legal justification for their position.”

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The largest housing complex in Marin County, Golden Gate Village residents are for predominantly Black and low-income. Courtesy image.
The largest housing complex in Marin County, Golden Gate Village residents are for predominantly Black and low-income. Courtesy image.

Tenants say the County of Marin is ignoring federal law requiring resident council participation

By Ken Epstein

Marin City public housing residents say the County is illegally depriving them of their rights to participate in renovation decisions that affect the future of their housing, raising deep concerns over whether the county ultimately will find a way to displace them.

According to regulations established by the U.S. Department of Housing and Urban Development (HUD), Marin City public housing residents have the right to organize, elect resident councils, and hold public housing agencies accountable for involving them in management decisions.

Without resident participation, the Board of Housing Commissioners, made up of the five Marin County Board of Supervisors and two resident comissioners, has approved a $226 million project.  The plan calls for renovation of the 296 units in Golden Gate Village (GGV) and focuses on interior improvements. The project is scheduled to start in July.

Residents’ concerns have a long history, said Royce McLemore, president of the Golden Gate Village Residents Council and a 50-year resident of Marin City,

Representation has been a continuous struggle for the Residents Council, she said in an interview with the Post News Group.  In 2014, the tenants took the county to federal court over this issue, and prevailed, resulting in an MOU that was in effect from 2014 to 2024, said McLemore. “Now, they are not responding to our rightful requests to participate.  They are not giving us a legal justification for their position.”

With no current MOU mandating training and participation of residents, the legal basis for all the redevelopment decisions made by the county since 2024 is questionable, said Terrie Green, executive director of Marin City Climate Resilience. “We are experiencing voicelessness. If residents had a voice, we wouldn’t be where we are today,” she said.

County decisions include a plan, in line with federal regulations, to convert GGV from public housing to a public-private enterprise that allows for private investment. The Marin Housing Authority has created a limited partnership that includes Burbank Housing – which will renovate the units and manage the property – and Wells Fargo Bank, the investor.

This change in federal policy regarding public housing, which includes a shift to a Section-8 voucher system, has resulted in gentrification across the country, particularly affecting African Americans in cities such as San Francisco.

Shifts in criteria of what is considered affordable could also end up pricing residents out of their living units. At present, low income in Marin County is officially considered $156,000. But the median household income in Marin City is significantly lower at $68,846

Damian Morgan, a community advocate with Marin City Climate Resilience, questioned why the county is renovating apartments without fixing toxic infrastructure that is impacting the lives of people in GGV.

Morgan said tenants have filed a class action lawsuit because of unsafe conditions at Golden Gate Village.

Residents are also concerned that the County still does not have an adequate family plan for temporary displacement while their apartments are being renovated.  Although the County has suggested other community apartments as alternatives, nothing concrete has developed except vacant public housing units that have the same toxic conditions, such as mold and mildew.

Green said it doesn’t make sense. “…Why are we moving people around into temporary housing that’s uninhabitable, when you should be dealing first with the infrastructure, the foundational work, replacing old and rusted water pipes and new sewers.”

Morgan questions the County’s motivation for neglecting infrastructure repairs. “They’re remodeling the units but leaving the decayed infrastructure in place. I feel like they’re just setting this up for it to fail.”

“What slowed it down a little is that GGV is a historic preservation district, but I think what they’re striving for is demolition by neglect,” he said. “The neglect has always been on their part.”

Architect Ora Hatheway said her concern is about cutting corners. “You have to deal with the land issues. You have to deal with grading and drainage, and that’s being brushed under the rug.”

In an interview with KGO TV, Marin County Supervisor Stephanie Moulton-Peters responded to some of these concerns.  She said residents are guaranteed the right to return to their homes.

“This is a concern that we take seriously,” she said. “Every resident will move back into their own unit, and we’ve given this to them in writing. Before they leave their unit, we will sign a document together that guarantees their right to return.”

In response to residents who feel left out of the planning process, she said community input has focused on those affected by the first phase of the project. “So other residents may not have heard quite as much or felt like they had as much contact. But if there are residents who have concerns, we’re happy to hear from them. You can contact my office or the housing authority directly,” she said.

While County leaders may be giving some updates to some tenants, they are not sitting at the table with the Residents Council nor giving residents a voice in decision-making, said McLemore.

Without a voice in decisions, tenants are worried that Black people may be forced out of public housing, resulting in gentrification, she said in an interview with ABC 7.  It’s still paternalistic, she said.  “It’s still that ‘We know what’s best for you.’’’

Several years ago, the Residents Council proposed a land trust plan that would give tenants homeownership rights.  Though the plan had broad support throughout the county, it was rejected by the Board of Supervisors

In the final analysis, Green said, for Marin City tenants the fight is not just for decent housing but to maintain their community with dignity under conditions of mutual respect.

“We’re talking about people who came here to work in the shipyards during World War II to bring about peace and safety to this country,” she said. “Look at the discrimination we’ve faced down through the years. Look at the life-span issue of Marin City folks – almost 20 years less than the rest of the County.”

“We want educational equity so our children will have decent schools. We need a land trust, property ownership, so we can have wealth creation. Marin City needs the same quality of life as other communities in Marin County.”

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Activism

Oakland Post: Week of May 6 – 12, 2026

The printed Weekly Edition of the Oakland Post: Week of may 6 – 12, 2026

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Activism

On the Frontlines of Hate: NAACP Links Victims to Critical Support

The NAACP CA/HI has a long and well-established record of supporting victims of discrimination and hate crimes — providing critical referrals and, when necessary, direct assistance through legal advocacy and other forms of support. Beyond responding to incidents, the organization continues to advocate on broader civil rights issues, including voting rights and legal protections. It has also worked to counter efforts at the state and federal levels that could weaken the voting power of communities of color.

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NAACP members at a recent advocacy day in Sacramento urging lawmakers to protect voting rights. Photo courtesy of California Black Media.
NAACP members at a recent advocacy day in Sacramento urging lawmakers to protect voting rights. Photo courtesy of California Black Media.

By Joe Kocurek
California Black Media

The California/Hawaii State Conference of the NAACP (CA/HI NAACP) has expanded its efforts to respond to rising hate incidents and civil rights complaints across California, supported in part by funding from California’s Stop the Hate Program

Through that grant, NAACP CA/HI has strengthened its ability to connect individuals experiencing hate or discrimination with critical resources. This includes referring those who file complaints to the CA vs Hate hotline, a statewide, non-emergency hate crime and incident reporting hotline and online portal created to help counter a more than 50% increase in reported hate crimes in California between 2020 and 2024. The system helps ensure incidents are documented, and victims are guided toward appropriate support.

LaJuana Bivens says the work of NAACP is as urgent as ever. Photo by Regina Wilson, California Black Media.

LaJuana Bivens says the work of NAACP is as urgent as ever. Photo by Regina Wilson, California Black Media.

LaJuana Bivens, who has served in a number of roles within the NAACP, said California has seen an increase in civil rights violations and hate-related incidents.

“We have 52 branches, and they are constantly receiving complaints,” she said. “So, without the Stop the Hate, we would not be able to refer those cases up to attorneys at the state level. A lot of the people would not have had an opportunity to be heard.”

Carmen-Nicole Cox helps survivors of hate with their legal options. Photo courtesy of Carmen-Nicole Cox.

Carmen-Nicole Cox helps survivors of hate with their legal options. Photo courtesy of Carmen-Nicole Cox.

Carmen-Nicole Cox, an attorney who works with NAACP CA/HI – as a part of California’s Stop the Hate Program – provides legal consultation to victims of hate incidents and discrimination through her legal practice, the Cox Firm for Law and Policy.

She said the complaints she receives span a wide range of issues.

“People are having home builders and landlords refusing to provide repairs, a student was denied promotion in an academic program, and targeted scrutiny at work,” she said. “It’s typically employment; it’s housing; it’s education.

“We’ll meet and they’ll share their experiences,” she said. “And then I make assessments about possible legal claims.”

According to the California Civil Rights Department (CRD), nearly 1,200 reports of hate against minority groups were submitted in 2024 through the CA vs Hate hotline and online portal for non-emergency incidents.

While the California/Hawaii State Conference of the NAACP, which has tens of thousands of members, does not directly investigate hate incidents or crimes, it plays a key role in connecting victims to the state’s reporting systems and support services.

The NAACP CA/HI has a long and well-established record of supporting victims of discrimination and hate crimes — providing critical referrals and, when necessary, direct assistance through legal advocacy and other forms of support.

Beyond responding to incidents, the organization continues to advocate on broader civil rights issues, including voting rights and legal protections. It has also worked to counter efforts at the state and federal levels that could weaken the voting power of communities of color.

Bivens recently traveled to Sacramento to speak with state lawmakers about voting rights during an advocacy day event hosted by the organization.

“It’s just so hard for communities of color to be up to date because of all of the confusing information coming from the federal level,” she said. “I love our great state of California because here it is possible to vote by mail and to vote early.

“And I’m seeing that trying to be eroded. So, I’m here to urge continued support for vote by mail and early voting.”

When Texas moved to redraw congressional districts in ways critics said would dilute minority voting strength, NAACP CA/HI supported the passage of Proposition 50 in California. The organization also intervened in United States v. Shirley Weber, where federal officials sought access to unredacted California voter records, including Social Security numbers, raising concerns about misuse and voter intimidation.

Cultivating the advocacy and leaderships of young people is central to NAACP’s mission to fight racism and dismantle inequality. Photo courtesy of California Black Media.

Cultivating the advocacy and leaderships of young people is central to NAACP’s mission to fight racism and dismantle inequality. Photo courtesy of California Black Media.

A federal district court dismissed that case in January 2026.

The organization’s current work builds on a long history of civil rights advocacy. Today, Bivens says, the organization’s mission remains as urgent as ever.

“We are the oldest, boldest, most feared Civil Rights organization,” Bivens said. “What we do every day is fight for better housing, education, economic development and political inclusion. We take it on because there are just so many people who need that support.

“You would be amazed that our phones ring every single day.”

Get Support After Hate:

California vs Hate is a non-emergency, multilingual hotline and online portal offering confidential support for hate crimes and incidents. Victims and witnesses can get help anonymously by calling 833-8-NO-HATE (833-866-4283), Monday to Friday, 9 a.m.–6 p.m. PT, or online at any time. Anonymous. Confidential. No Police. No ICE.

This story was produced in partnership with CA vs Hate. Join them for the first-ever CA Civil Rights Summit on May 11. More information at www.cavshate.org/summit.

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