Senate Judiciary Committee Chairman Charles E. Grassley is calling on three major tax-exempt groups to respond to reports as to whether their money has been funneled to the Chinese Communist Party.
Mr. Grassley is probing 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 CCP and its allies.
Mr. Grassley, Iowa Republican, sent a letter to each organization’s CEO outlining how much money it has been reported that the organization has sent to the Chinese Communist Party.
The Bill and Melinda Gates Foundation in 2023 reportedly directed about $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 more than 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 either 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, a global economic development strategy launched by Beijing in 2013.
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.
“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. 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),” Mr. Grassley wrote.
“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.’”
The Washington Times reached out to the Bill and Melinda Gates Foundation and the Rockefeller Brothers Fund for comment.
In a statement to The Times, the Ford Foundation said it “carries out its philanthropic activities with independence and integrity and in full compliance with all applicable laws.”
“Our grants in China are intended to reduce poverty and injustice, strengthen democratic values, promote international cooperation, and advance human achievement—these are fundamental American values and priorities,” the foundation said. “It is of utmost importance to us that our funds are used for charitable purposes in alignment with our mission and values, and we have robust controls in place to ensure that each grant is expended only for its intended objective.”
Mr. Grassley asked each organization’s head to confirm the accuracy of the reports of their financial transactions to the Chinese Communist Party.
Additionally, he asked how many foreign projects each organization has engaged in, and their criteria.
He also asked about foreign organizations that have been awarded grants, and to provide an IRS determination letter that it is a “recognized exempt organization.”
