Source: United States House of Representatives – Representative Mike Kelly (R-PA)
WASHINGTON, D.C. — During a Ways & Means Committee hearing on Tuesday which addressed the foreign influence in American non-profits, U.S. Rep. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, called out foreign billionaires and other foreign entities for exploiting American tax-exempt and nonprofit laws. Kelly also expressed concerns about foreign entities funding protests and protests throughout the U.S., such as recent protests in Minneapolis.
Prominent examples include the People’s Forum, a 501(c)(3) organization that supports disorderly conduct resulting in arrests, which received over $20 million from Neville Roy Singham, a U.S. tech-mogul who resides in Shanghai with close ties to the Chinese Communist Party. Recently, the People’s Forum has joined calls for a national day of protest against ICE and has played an active role in organizing anti ICE protests in Minneapolis, MN and across the country.
Kelly also highlighted how the tax-exempt nonprofit economy now comprises 15% of GDP, spans more than 1.8 million organizations, and manages over $8 trillion in assets.
“The American people are starting to look at foreign influence like this and say, ‘what’s the return on my investment as a taxpayer?'” Rep. Kelly said. “From a national security concern, we should be incredibly concerned. Somebody is picking up the tab, and it’s becoming clear foreign groups are cheating American taxpayers.”
BACKGROUND
The Committee has called on both the Biden IRS and Trump IRS to investigate potential revocation of nearly a dozen nonprofits with links to foreign terrorist groups, as well as organizations linked to violence and unrest in the United States. Groups include Americans for Justice in Palestine Education Foundation, American Muslims for Palestine, WESPAC Foundation, Alliance for Global Justice, and The People’s Forum.
Kelly and Ways & Means Republicans also called for greater transparency, accountability, and oversight of foreign money flowing through U.S. nonprofits to ensure the American tax-exempt privilege is protected.
Further, foreign actors also use complex systems of multiple tax-exempt organizations to cloud transparency and skirt IRS requirements while trying to influence American elections. For example, Hansjorg Wyss, a Swiss billionaire, used his 501(c)(3) Foundation and the closely tied 501(c)(4) Action Fund to influence American elections, donating $208 million to help “Democrats…win the White House and control of Congress.”
You can watch the full hearing here.