The similarity between two organizations overseeing America's 250th anniversary celebrations has sown considerable confusion over who controls which events. According to a report released by House Democrats on July 2, 2026, one of those groups — Freedom 250 — allegedly engaged in fraudulent fundraising practices that exploited that very confusion.

The United States has not commemorated a milestone of this scale since the 1976 Bicentennial, making the Semiquincentennial a once-in-a-generation national event. The dual-entity structure — one organization created by Congress, the other by executive order — is itself unusual for a national commemoration and has contributed to donor uncertainty from the outset.

A Freedom 250 spokesperson, Danielle Alvarez, has denied the allegations. The claims, however, raise serious legal questions, according to Sarah Webber, an associate professor of accounting at the University of Dayton who researches charitable fraud.

America250

America250 is a bipartisan initiative established by Congress through the Semiquincentennial Commission Act of 2016 to encourage nationwide participation in 250th anniversary events. As a charitable nonprofit with 501(c)(3) status, the organization is tax-exempt, and its donors may be able to deduct their contributions from taxable income.

America250's stated mission is to "inspire our fellow Americans to reflect on our past, strengthen our love of country, and renew our commitment to the ideals of democracy through programs that educate, engage, and unite us as a nation."

The organization has hosted several major events, including the American Block Party events held July 3–4, 2026, in Los Angeles, New York City, Philadelphia, Boston, and other cities. Its funding comes from money appropriated by Congress as well as donations from corporations and individuals. America250's events are ongoing across the country, in both Democratic- and Republican-leaning states.

Freedom 250

Freedom 250 is a much newer entity. It was founded through an executive order President Donald Trump signed in January 2025 — nearly a decade after Congress had already established America250 to plan the same anniversary. The National Park Foundation oversees and owns Freedom 250 LLC, a limited liability company formed at the request of the National Park Service, and it receives federal funding for use at events approved by the park service.

There is no statement on the tax-deductibility of donations on the Freedom 250 website or on the National Park Foundation site. However, the law firm Skadden released tax guidance stating that Freedom 250 essentially borrows its tax-exempt status from the National Park Foundation, which is a 501(c)(3) organization eligible for tax-deductible donations.

The White House has described Freedom 250's purpose, in part, as to "ignite a spirit of adventure and innovation to help our nation succeed for the next 250 years, and invite Americans to pray for our country and our people and rededicate ourselves as One Nation Under God."

After Congress appropriated US$150 million for 250th anniversary events in the major tax, spending, and immigration bill Trump signed into law on July 4, 2025, much of that money flowed to Freedom 250's coffers. The Trump administration is now asking lawmakers to provide $10 million more in federal funds, citing "elevated security threats against high-profile events in Washington, D.C."

The White House has actively promoted Freedom 250 events, including the Great American State Fair on the National Mall and a UFC fight on the White House grounds. Upcoming events include the 2026 Patriot Games, a national competition for high school athletes scheduled for August 9–11, followed by a Grand Prix on August 22–23 — a 1.66-mile (2.67-kilometer) temporary street circuit around the National Mall where drivers will complete 125 laps.

Trump has played a central role at Freedom 250 events, delivering a keynote speech at the Great American State Fair that emphasized his "Make America Great Again" agenda and giving a lengthy political address before the July 4 fireworks display.

Several performers, including country singer Martina McBride and rock musician Bret Michaels, declined to participate in Freedom 250 events due to their political overtones. They said they opted out after discovering the events would not be the nonpartisan celebrations they had originally been led to expect.

Alleged Wrongdoing

The House Committee on Natural Resources has oversight responsibilities for the National Park Service. House Democrats on the committee began investigating Freedom 250 to understand why it was created after Congress had already established America250.

In their report, those lawmakers said they received incomplete answers from Department of the Interior officials, including Interior Secretary Doug Burgum.

In the 55-page interim report released on July 2, the lawmakers allege that some donors who intended to support America250 were instead given directions to wire funds to Freedom 250's bank account. Additionally, the report states that some corporate sponsors and other donors were targeted for donations, and some sponsors allege they were pressured to support Freedom 250 instead of America250.

Although the report may appear partisan because it was released by a group of Democrats, the allegations of misleading donors and wire fraud could, if substantiated, serve as grounds for legal charges. If proven true, Freedom 250 may have committed charitable solicitation fraud.

Charitable Solicitation Fraud

Charitable solicitation fraud occurs when a charity solicits donations using false or misleading claims about who is asking for a gift, where the money will go, or what the donated funds will be used for.

Both Freedom 250 and America250 operate and are registered in the District of Columbia. As a result, they are subject to D.C. laws governing charitable solicitations, which can be used to stop unlawful fundraising, dissolve nonprofits, or freeze their funds.

The D.C. government can challenge the spending of funds that is not in line with the charitable purpose of nonprofits like these. The D.C. attorney general's office has previously used these laws to stop fraudulent solicitations as well as other kinds of charitable wrongdoing.

Additionally, federal law prohibits deceptive charitable solicitation. The Federal Trade Commission is responsible for investigating consumer claims of fraudulent fundraising. The FTC, for example, shut down a massive fraudulent operation in 2021 that raised more than $110 million from 1.3 billion deceptive fundraising robocalls for a variety of charitable causes, including support for homeless veterans, cancer patients, and children with autism.

The IRS could potentially become involved if there is evidence that Freedom 250, a tax-exempt organization, has violated federal tax laws applicable to nonprofits with that status. If authorities investigate the wire fraud allegations, the Department of Justice, and possibly the FBI, may also join the investigation.

Even if the Democrats' allegations do not lead to lawsuits or official probes by government agencies, Freedom 250 will likely continue to face scrutiny as additional Semiquincentennial events take place throughout the remainder of 2026. With both organizations still actively fundraising and hosting events, donors and corporate sponsors navigating the two entities will need to verify exactly which organization they are supporting before committing funds.

Sarah Webber, Associate Professor of Accounting, University of Dayton. This article is republished from The Conversation under a Creative Commons license.