The Treasury Secretary is coming for left-wing nonprofits.
According to the New York Post, Treasury Secretary Scott Bessent and the IRS are preparing to review the tax-exempt status of several prominent progressive organizations, including George Soros’ Open Society Foundations, the Council on American-Islamic Relations (CAIR), and the Southern Poverty Law Center (SPLC). The reviews could lead to the revocation of their 501(c)(3) status and face substantial back-tax payments, civil penalties, and potentially the standard 21 percent federal corporate tax rate moving forward.
🚨 HOLY CRAP! Treasury Sec. Scott Bessent is reportedly gearing up to REVOKE the tax-exempt status of nonprofits including George Soros' Open Society Foundation, CAIR (Council on American-Islamic Relations) and the SPLC — NYP
— Eric Daugherty (@EricLDaugh) August 28, 2026
The operation might result in CIVIL PENALTIES too… pic.twitter.com/Q1zOVJqUbm
The foundation for the investigation rests in part on an executive order signed by President Trump last year targeting nonprofits engaged in a “substantial illegal purpose.” The order identified conduct including aiding violations of immigration law, supporting terrorism, engaging in political violence, facilitating discrimination, or repeatedly violating state laws on trespassing, disorderly conduct, vandalism, public nuisance, or highway obstruction.
The Treasury Department, however, now appears prepared to use that framework to potentially revoke the tax-exempt status of nonprofits found to be engaged in that kind of conduct.
As for the three major nonprofits reportedly in Treasury’s sights, Open Society Foundations has faced allegations that its money has reached groups tied to violent protests and Antifa-aligned activism. CAIR has long faced more serious questions as the FBI suspended formal outreach to the organization after citing evidence of a relationship with Hamas, while critics have accused the group of operating as a terrorist-aligned organization. The SPLC, meanwhile, was federally indicted just months ago on allegations that it secretly funneled more than $3 million in donor money to people associated with the KKK, neo-Nazi organizations, and other violent extremist groups. Prosecutors say some of that money ultimately supported criminal conduct.
Whether any of that will meet the legal threshold for revocation is ultimately for the IRS to determine. But the Treasury appears ready to find out whether these organizations are charitable institutions or simply left-wing political machines.
"Treasury is expanding its efforts to identify organizations that abuse charitable and non-profit structures as vehicles for illicit finance," Secretary Bessent said at a press conference last month. "We are examining where tax-exempt status has been exploited, where charitable entities have become financial conduits for foreign influence activity, and how those entrusted with stewardship of these organizations have instead enabled violence."
"Where the evidence leads, we will not hesitate to follow," he added. "And of course, we will hold these organizations, officers, directors, accountable. And just as financial institutions must know their clients, they must know their grantees. That work is well underway."
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