Senate Judiciary Committee Chairman Chuck Grassley has launched an inquiry into the Bill and Melinda Gates Foundation, the Rockefeller Brothers Fund, and the Ford Foundation regarding their compliance with tax laws for 501(c)(3) organizations. The investigation comes after reports that these foundations have provided funding to the Chinese Communist Party (CCP) and its affiliates.
Grassley wrote to each organization, stating, “According to recent reports, [your organizations], through grants and direct payments, have funded the Chinese Communist Party (CCP) and its allies,” adding, “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.”
He continued: “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.”
Section 501(c)(3) of the Internal Revenue Code allows for tax-exempt status for entities whose activities are charitable in nature and do not directly support or promote foreign governments. Private foundations can provide funds to foreign organizations but must follow specific rules ensuring those funds serve a qualifying charitable purpose and avoid excise taxes.
Recent reporting indicates that in 2023, the Bill and Melinda Gates Foundation directed about $11.7 million to CCP entities, $2 million to a corporation associated with the Chinese military, and $6.7 million to state-run Chinese universities. In fiscal year 2022 alone, it reportedly distributed approximately $23 million to more than 20 different Chinese entities identified as “foreign governments.”
Between April 2020 and August 2024, the Rockefeller Brothers Fund is reported to have donated $7.4 million to groups affiliated with or led by CCP members or engaged in partnerships with China. This included collaboration with the Society of Entrepreneurs of Ecology Foundation—a group working alongside the CCP on China’s Belt and Road Initiative.
The Ford Foundation reportedly gave nearly $10 million from January 2020 through December 2024 directly to the Chinese government in support of Belt and Road projects. Most grants were said to go toward state-run or CCP-run universities closely linked with China’s People’s Liberation Army.
Grassley’s letters request clarification from each foundation regarding these allegations and seek information on how their activities align with federal requirements for tax-exempt status.
