While there is plenty of news in media of investors for the
GOP, there is little covered in how the Democrat Party raises money for their
campaigns. Recent hearings in the House Committee on Ways and Means shows how
their campaigns have money from foreign sources, using IRS exemptions that are
supposed to meant for charitable organizations. The Democrat Party has truly
found a way to use the tax code to their advantage, with this just being the
last way that government agency has become essential in Democrat plans.
Letter to IRS
Here, via the Ways and Means blog, is part of the letter to
the IRS Commissioner Daniel Werfel asking about CCP trying to sway American
opinion.
Recent reports shed light on the Energy Foundation’s significant ties to the CCP. Although the organization claims to be headquartered in California, filed tax forms show the group refers to itself as “Energy Foundation China,” and reports suggest that the majority of its operations are conducted in China with a staff that has substantial connections to the CCP – including its CEO and President who previously served as the deputy director general of China’s National Center for Climate Change Strategy. Even more concerning is the fact that this group contributed $3.8 million to promote “green” energy policies that would increase our country’s dependence on Chinese minerals and materials. Not only do these activities raise serious national security concerns, but they also raise questions about whether organizations like this receive foreign funding from America’s adversaries and whether the Internal Revenue Service (“IRS”) is conducting oversight of entities like these.
The Energy Foundation is far from alone. Look no further than the activities of tech mogul Roy Singham who owns and operates a complex network of American-based, tax-exempt nonprofits that, according to The New York Times, “defends China and pushes its propaganda.” Mr. Singham works in Shanghai and shares office space with Maku Group, a Chinese media company which “says its goal is to ‘tell China’s story well,’ a term commonly used for foreign propaganda.” One of Mr. Singham’s nonprofits has sent nearly $1.8 million to the Maku Group. Mr. Singham is actively fueling CCP propaganda and financing indoctrination efforts abroad by providing hundreds of millions of dollars to groups that mix progressive advocacy with CCP talking points.
Despite this foreign activity and engagement with CCP-tied organizations across the world, Mr. Singham’s American-based nonprofit organizations continue to do business as usual, supporting political activity and pro-CCP propaganda. These political activities include those believed or intended to influence Americans about the political or public interests, policies, or relations of a foreign government.
Given the reporting from The New York Times which says that Mr. Singham works closely “with the Chinese government media machine and is financing its propaganda worldwide” and that he even attended a CCP propaganda forum in July 2023, it is unclear how Mr. Singham, his entities, and the U.S.-based individuals associated with his entities are being funded.
Scheme Workings
Here, via the hearings site, is how the financing scheme works.
Rep. Fischbach: “If a foreign national from a country that is an adversary of the United States wanted to donate millions of dollars to a 501(c)(3), is there any reporting requirement that would let Americans know that American adversaries are funding a nonprofit?”
Philip Hackney, nonprofit tax law professor: “The government itself would get names and addresses on the Schedule B because the names and addresses have not yet been removed…But right now, the government has that information, but the public does not. So the public does not have that information.”
Fischbach: “Could this nonprofit then spend millions of dollars on issue advocacy campaigns to support policies that reduce, let’s say American energy independence, or any other issue they may come up with?”
Hackney: “…You would not be able to see it.”
Fischbach: “Could that same nonprofit funded by American adversaries use the funds to conduct get-out-the-vote activities in targeted or not-targeted places that may support a certain candidate?”
Hackney: “A charitable organization is able to carry out get-out-the-vote efforts, and there is nothing that stops that from taking place.”
Fischbach: “Then could that same nonprofit also send money to a 501(c)(4) organization that’s able to donate to a Super PAC, which can run television?”
Hackney: “The Supreme Court itself…found that the limitation on lobbying for charities satisfied the First Amendment challenge because the 501(c)(3) can give money to a 501(c)(4) and in turn give it to a PAC. Under First Amendment principles, we have long accepted this as an aspect, but yes, you’re correct that they can do that.”
501(c)(3)
Here, via the IRS website, is what a 501(c)(3) is.
The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.
501(c)(4)
Here, via the IRS website, is what a 501(c)(4) is.
To be tax-exempt as a social welfare organization described in Internal Revenue Code (IRC) section 501(c)(4), an organization must not be organized for profit and must be operated exclusively to promote social welfare. The earnings of a section 501(c)(4) organization may not inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any managers agreeing to the transaction.
There does not seem to
be any of these organizations pushing even a GOP agenda, let alone a
conservative one. The organizations mentioned here are most likely not the only
ones and most likely helping the Democrat Party in many areas. There are other foreign
nationals doing the same, which means that foreign folks have an easy way to
have their voices heard, while the party benefitting from this keeps the door
open via hiding it. People keep saying they want proof of what the Democrats
do, well here it is.
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