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.
Grassley continued:
Section 501(c)(3) of the Internal Revenue Code (IRC) provides tax-exempt status for entities that are organized and operated exclusively for a charitable purpose.5 A 501(c)(3) organization may lose its tax-exempt status for failing to pursue the exempt purpose it described in its application to the Internal Revenue Service (IRS). 6 With regard to activity in foreign countries, IRS guidance states that "direct grants to foreign governments do not serve IRC 501(c)(3) purposes." 7 Thus, in order 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.8 Further, according to IRS guidance, private foundations "can distribute funds to foreign organizations to conduct activities outside of the United States, but must follow special rules when dealing with foreign organizations to avoid the excise taxes under Section 4942 and Section 4945.
Grassley asked Gates Foundation CEO Mark Suzman to provide detailed documentation about these questionable grants :
Are the reports that the Gates Foundation funded Chinese government projects and initiatives, including potentially Belt and Road Initiative (BRI) projects, accurate? Please explain.
How many foreign projects has the Gates Foundation funded in the last five years? Did any of these projects provide direct or indirect funding to foreign governments? Provide a list of projects and provide all records
When determining whether or not to fund projects and initiatives in a foreign country, what criteria does the Gates Foundation use to make that decision? Provide all records.
Did the foreign organizations the Gates Foundation has awarded grants to provide an IRS determination letter that it is a "recognized exempt organization" or did the Gates Foundation obtain an equivalency determination from a qualified tax practitioner? If so, provide the IRS determination letter or equivalency determination for each organization. If neither an IRS determination letter nor equivalency determination was provided, what procedures has the Gates Foundation put in place to exercise expenditure responsibility consistent with IRC 4945(h)? Provide all records.
Have any of the expenditures the Gates Foundation made to foreign organizations resulted in a tax under IRC 4945 or IRC 4942? Provide all records
Via Judicial Watch in a 2021 X post:
Commenting on Grassley's letter, civil terrorism expert Jason Curtis Anderson of One City Rising,
While I fully support this effort and am encouraged to see the Senate calling out the Bill & Melinda Gates Foundation for funneling funds into the Chinese Communist Party (CCP), and I'm glad to see the Senate taking seriously the role of nonprofits in safeguarding national security and tax-compliance, this acknowledgement in the letter from the Judiciary Committee is only the beginning of the process. The next phase must be significantly more aggressive: the Executive Branch needs to take the baton and escalate into the enforcement stage — scrutinizing grants, auditing tax-exempt status, applying relevant sanctions, and ensuring full transparency around foreign funding flows. Without concrete administrative follow-through and regulatory action, this letter risks ending as a warning rather than a real deterrent.
Beyond the Gates Foundation, it's likely that Senator Grassley's office is also scrutinizing CCP-linked billionaire Neville Roy Singham and his dark-money network, which has allegedly funded color-revolution-style operations against President Trump.
Meanwhile, the broader far-left NGO ecosystem remains a lawless environment - one that is orchestrating regime-change against Trump and MAGA, aiming to seize power in a Marxist takeover.
The pattern is becoming impossible to ignore: these dark-money NGOs are the ones pulling the strings of the deep state, hence the White House's declaration of war against them.
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Grassley's full letter:
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