A progressive nonprofit that has received millions in federal grants is now under legal scrutiny for allegedly violating anti-discrimination laws and executive orders through its race-based internship program.
The Croatan Institute, a North Carolina-based organization committed to promoting “diversity, equity, and inclusion” in finance, may face the loss of both its federal funding and nonprofit status due to its discriminatory internship practices—specifically giving preference to applicants based on race.
The institute’s BLAISE internship program—short for BIPOC Leaders Advancing an Inclusive and Sustainable Economy—explicitly states that “priority [is] given to students of color or first-generation students from underserved communities.” In its 2022 pilot year, the program went even further, requiring applicants to “identify as black, Indigenous, Latinx, or person of color.” This violates federal anti-discrimination laws and President Donald Trump’s executive order banning DEI-based discrimination by federal grant recipients.
Legal experts say the group’s practices clearly run afoul of Title VI of the Civil Rights Act, which prohibits discrimination based on race, color, or national origin in any program receiving federal financial assistance.
“Giving priority to certain races, as the BIPOC internship does, is textbook discrimination,” said GianCarlo Canaparo, Senior Legal Fellow at the Heritage Foundation, in comments to The Daily Wire. “If Croatan continues to receive federal funds, those funds are absolutely in jeopardy.”
Canaparo further warned that the group could face False Claims Act liability if it fails to disclose the discriminatory nature of its programming while receiving taxpayer dollars. More broadly, the Croatan Institute could also lose its tax-exempt status, as the IRS has the authority to revoke nonprofit classification from organizations that violate anti-discrimination rules.
The Croatan Institute has raked in over $4 million in federal grants since 2022, including a $1.9 million grant from the Department of Agriculture (USDA) for fiscal year 2025. Nearly $470,000 of that grant has already been paid out. The group was also scheduled to receive $40,000 from the USDA to host financial workshops targeted specifically at “BIPOC farmers and landowners.”
Another $731,000 USDA grant helped fund the institute’s Financial Health Investment Project, to “promote financial resilience” among black and minority landowners.
Critics say the racial exclusivity of these programs runs directly counter to the spirit and letter of federal civil rights laws, especially under the current Trump administration, which has moved aggressively to rein in discriminatory DEI programs.
The Croatan Institute is not alone. A similar case involving a music ensemble funded by the National Endowment for the Arts came under fire after The Daily Wire uncovered that it had run a “BIPOC-only” internship that explicitly barred white applicants. Following the investigation, the group suspended the internship program.
Both cases reflect a pattern of federally funded nonprofits pursuing overtly race-based initiatives under the umbrella of DEI, despite increasing legal and political pressure to end such practices.
“The government should not be subsidizing discrimination, no matter how it’s branded,” Canaparo said. “This kind of racial sorting is not only unlawful—it’s morally wrong and fundamentally un-American.”
The Croatan Institute has not responded to requests for comment on the allegations or the future of its federal funding.
As the Trump administration continues its crackdown within taxpayer-funded institutions, more organizations could soon find themselves in legal crosshairs—especially if they prioritize political ideology over compliance with civil rights law.
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BANKRUPT THEM.
Special benefits based on race are just wrong. That isn’t equal opportunity, it is unfair advantage.
SHUT OFF any PERKS – FUNDS – like YESTERDAY – they want to FLY SOLO? let them take to the wind without a sail
👍