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Scrutiny of the nonprofit world is increasing by the week. Regarding the Gates Foundation, rumblings surfaced in late August when the foundation abruptly severed ties with the Arabella network. This is the same network that bankrolls color-revolution-style operations run by No Kings partners, also known as the permanent protest-industrial complex.
Now, congressional pressure is mounting on the Bill & Melinda Gates Foundation as U.S. Senate Judiciary Committee Chairman Chuck Grassley of Iowa launched an investigation into the foundation's alleged funneling of tens of millions of dollars in grants to entities tied to the Chinese Communist Party (CCP), raising serious concerns over potential violations of U.S. tax laws governing 501(c)(3) world.
"According to recent reports, the Gates Foundation, through grants and direct payments, have funded the Chinese Communist Party (CCP) and its allies. I am writing today to ask you whether these reports are true or not and, if true, how your organization's conduct comports with 501(c)(3) requirements," Grassley wrote in the letter.
Grassley cited several media reports that suggested in 2023 the Gates Foundation directed:
$11.7 million to various arms of China's government,
$2 million to a corporation linked by the U.S. Department of Defense to the Chinese military,
and $6.7 million to state-run universities that support Xi Jinping's regime
Grassley noted the foundation's 2022 tax filings that showed, according to the senator, "the nonprofit provided approximately $23 million in funding to over 20 different Chinese entities, some of which were labeled as "foreign governments."
These payments were reportedly categorized as public health or research initiatives. However, IRS regulations prohibit 501(c)(3) charities from directly supporting foreign governments. This means the foundation would have to obtain IRS determination letters or equivalency determinations to ensure that foreign grants serve charitable purposes and do not violate Sections 4942 or 4945 of the IRS Code.