Elon Musk Reacts to Carolyn Phippen’s NGO Post: “Biggest Scam Ever”
Tech mogul Elon Musk has branded the U.S. government’s nonprofit funding system the “biggest scam ever.”
The controversy was sparked by a claim from former U.S. Senate candidate Carolyn Phippen, who stated that 7,000 politically connected NGOs (non-governmental organizations) receive 90% of all taxpayer money directed to nonprofits.
That staggering figure accounts for roughly $300 billion annually, funneled from the government into nonprofit organizations, often with zero public transparency.
“So it turns out 7,000 politically connected NGOs are receiving 90% of all taxpayer money going to nonprofits. Roughly $300 billion in government money flows through nonprofits every year with zero transparency with regard to where that money goes,” Phippen said.
She added: “The American people deserve access to the books of any entity that takes government money, and all information about how that money is used and the communications around it need to be considered public record. That’s our money, and these NGOs need to start answering to us.”
Elon Musk echoed Phippen’s concerns on X , bluntly calling the situation the “biggest scam ever.”
Biggest scam ever https://t.co/35tBrS39mE
— gorklon rust (@elonmusk) May 6, 2025
Who Is Carolyn Phippen?
Carolyn Phippen, 55, is a wife, mother of five, and a passionate advocate for conservative values who has spent over three decades living and working in Utah.
Her commitment to public service began early. After studying at Brigham Young University and serving a mission in Czechoslovakia shortly after the fall of the Berlin Wall, she witnessed firsthand the dangers of vast government control.
This experience cemented her belief in limited government and individual liberties. She later completed her bachelor’s degree at the University of Utah while raising her young children.
Determined not to sit on the sidelines, Phippen became deeply involved in Utah’s conservative movement. She worked with influential leaders like Senator Mike Lee and Utah House Speaker Greg Hughes, and later served as Executive Director of Freedom Front, a group committed to fighting federal government overreach and defending the free market.
She also serves on the board of Utah Citizens for the Constitution and is part of the Why I Love America committee, which promotes patriotism throughout Utah and beyond.
Though she didn’t secure the Republican nomination for U.S. Senate in 2023, Phippen continues to champion conservative principles, including:
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Fighting inflation and lowering the national debt.
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Opposing career politicians and government corruption.
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Upholding family values and constitutional rights.
“I’m not a politician,” Phippen has said. “I’m a mom who has fought on the front lines of the conservative movement for years.”
She currently lives in Draper, Utah, with her husband and two of their five sons.
Billions Without Oversight?
Critics like Musk and Phippen argue that the current system allows massive taxpayer-funded grants to flow to politically favored NGOs without proper transparency. Watchdog groups have raised concerns for years that some nonprofits operate as de facto political entities while receiving public funds shielded from scrutiny.
Proposed reforms include:
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Full public access to financial records of any nonprofit receiving government money.
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Disclosure of communications about how funds are allocated and spent.
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Establishing independent oversight bodies to audit nonprofit spending.
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