In order to crack down on fake charitable organisations, the US Treasury Department and tax authorities are planning to revoke the tax-exempt status of organisations such as George Soros’ Open Society Foundations, the Southern Poverty Law Center (SPLC) and the Council on American-Islamic Relations (CAIR) – according to three sources said to have knowledge of the matter, speaking exclusively to the New York Post.
This is part of a Trump-backed crackdown on “fake” charitable organisations, and Treasury Department officials are drawing up a sweeping review of organisations deemed to be exploiting and abusing US tax laws, according to the three people, who have been briefed on the Treasury Department’s internal policy discussions.
Trump has already paved the way for these ambitions:
The initiative is based in part on a 2025 executive order signed by President Donald Trump targeting non-profit organisations operating with a “substantial illegal purpose”, paving the way for the tax authorities (IRS) to issue fines or even strip charitable organisations allegedly linked to political violence, protests or radical ideologies of their tax-exempt status.
One of the sources expects rapid developments in the matter, perhaps before the midterm elections:
“There is a lot of internal pressure to get this done, but some people at the IRS are still moving too slowly,” the source said. “That is expected to change very soon.”
The left is already accusing the Trump administration of politically abusing the tax laws, and initiatives that have already been put forward are being challenged in the courts, the New York Post reports.
US Treasury Secretary Scott Bessent had already announced last autumn that the Trump administration would turn its attention to “non-profit” organisations. It is also part of the story that Bessent himself was Soros’ investment manager until 2015.
Open Society Foundations supports, among others, Black Lives Matter, the US Campaign for Palestinian Rights and United We Dream Action, a group that actively works to prevent the deportation of illegal immigrants.
