Grassley Probes Gates Foundation and Others for 501(c)(3) Compliance

Grassley Probes Gates Foundation and Others for 501(c)(3) Compliance

WASHINGTON - Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) is scrutinizing the Bill and Melinda Gates Foundation, the Rockefeller Brothers Fund and the Ford Foundation to determine how the organizations are complying with applicable tax laws given their reported funding of the Chinese Communist Party (CCP) and its allies.

"According to recent reports, [your organizations], through grants and direct payments, have funded the Chinese Communist Party (CCP) and its allies," Grassley wrote. "To maintain tax exempt status, an organization's activities must be charitable in nature and may not directly support or promote the interests of a foreign government."

"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 continued.

Read Grassley's letter to the Bill and Melinda Gates Foundation HERE.
Read Grassley's letter to the Rockefeller Brothers Fund HERE.
Read Grassley's letter to the Ford Foundation HERE.

Background:

Section 501(c)(3) of the Internal Revenue Code provides tax-exempt status for entities that are charitable in nature and do not directly support or promote the interests of a foreign government. While private foundations are allowed to provide funds to foreign organizations, they must follow specific rules to ensure funds are used for a qualifying charitable purpose and avoid excise taxes.

The Bill and Melinda Gates Foundation in 2023 reportedly directed approximately $11.7 million to various arms of the CCP, as well as $2 million to a corporation working with the Chinese military and $6.7 million to state-run Chinese universities. In fiscal year 2022, the nonprofit organization reportedly provided roughly $23 million to over 20 different Chinese entities, some of which were labeled "foreign governments."

The Rockefeller Brothers Fund, from April 2020 to August 2024, reportedly donated $7.4 million to organizations that were part of the CCP, led by members of the CCP or engaged in partnerships with China. Specifically, the nonprofit partnered with the "Society of Entrepreneurs of Ecology Foundation," which partnered with the CCP to assist the Belt and Road Initiative.

The Ford Foundation, from January 2020 to December 2024, reportedly provided nearly $10 million to the Chinese government to further the Belt and Road Initiative. Most of the Ford Foundation's Chinese grant funding was reportedly given to state-run, or CCP-run, universities with strong ties to the People's Liberation Army.

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