The conservative nonprofit, which raised more than $40 million in 2012, has brought in less than $10 million this year, according to the sources. And former employees say the group’s rank-and-file have grown increasingly frustrated with what they view as management’s exorbitant expenditures, including a pricey craft beer bar and fancy Las Vegas hotel rooms that rack up thousands of dollars a night in charges.

FreedomWorks spokesperson Jackie Bodnar did not deny the spending or the debt, but she broadly dismissed the claims as accusations from disgruntled former employees.

“Someone has clearly contacted you with the rumors being spread about FreedomWorks, and they are part of a series of baseless attacks from salty former employees who have decided to spend their days spreading lies rather than working to advance the movement,” Bodnar said. “It’s really unfortunate to watch the malice unfold from these nameless accusers who lurk in the shadows of ‘deep background’ interviews.”

But six independent sources familiar with FreedomWorks described the organization as one with deeply mismanaged finances, an unclear mission, and what one former employee called a “toxic” work environment that has contributed to low morale and a general rush for the exits.