A major civil rights group has asked the IRS to investigate three prominent nonprofits—including the Gates Foundation—for alleged racial discrimination that could jeopardize their tax-exempt status.
Key Facts:
- The American Alliance for Equal Rights (AAER) filed complaints with the IRS against the Gates Foundation, the Lagrant Foundation, and Creative Capital.
- AAER alleges these nonprofits exclude white applicants from scholarships and professional opportunities.
- Edward Blum, AAER’s president, says these practices violate federal law and disqualify the groups from tax-exempt benefits.
- The Gates Scholarship only accepts minority students from specified racial and ethnic backgrounds.
- Lagrant and Creative Capital also restrict eligibility based on race, partnering with major corporations and left-leaning funders.
The Rest of The Story:
The AAER’s complaint centers on how these nonprofits use public subsidies—via their tax-exempt status—while allegedly engaging in race-based exclusions.
The Gates Foundation, for example, provides full college scholarships to minority students but explicitly bars white students from applying.
Similarly, the Lagrant Foundation limits its career programs in marketing and advertising to select racial groups and lists partnerships with household-name corporations.
Creative Capital, in partnership with the Skoll Foundation and Kickstarter, launched a $500,000 fund that excluded white artists.
AAER argues these policies contradict public policy and federal law, stating that public subsidies should not support discrimination of any kind.
Blum emphasized that “benevolent intentions” don’t excuse what he describes as racially discriminatory practices.
Bill Gates Foundation, Other Nonprofits Could Lose Tax-Exempt Status Over Anti-White Discrimination | Spencer Lindquist, The Daily Wire
The American Alliance for Equal Rights reported the groups to the IRS over their discriminatory scholarships and programs.
The Bill and… pic.twitter.com/2JLGuxEpkx
— Owen Gregorian (@OwenGregorian) April 3, 2025
Commentary:
No nonprofit should be allowed to pick and choose who benefits from public tax breaks based on race.
If a church or charity were excluding Black, Hispanic, or Asian Americans, it would be front-page news—and rightly so.
Equal treatment under the law should apply to everyone, regardless of skin color.
The IRS has a responsibility to enforce existing laws fairly.
Organizations found discriminating—even in the name of “diversity”—should be stripped of their nonprofit status until they comply with anti-discrimination laws.
This is not a minor paperwork issue; it’s a fundamental question about whether our tax system should subsidize unequal treatment.
Programs that target “minorities only” leave out white Americans who may also face real hardship.
A poor, rural white student in Kentucky or West Virginia deserves the same shot at college funding as anyone else.
If they’re being excluded solely because of race, that’s wrong—period.
Too many elite foundations and corporations are hiding behind trendy language like “DEI” to justify policies that would never pass legal muster if the racial roles were reversed.
Whether it’s a scholarship, an internship, or an artist grant, any race-based restriction undermines the American promise of equal opportunity.
The truth is, race discrimination doesn’t become acceptable just because it targets a different group.
Allowing it to happen, especially with taxpayer subsidies, opens the door to a dangerous precedent.
Discrimination is discrimination—no matter who it’s against.
If the IRS fails to act, it sends a message that some groups can break the rules with impunity, while others are held to the letter of the law.
That kind of double standard is toxic for the country.
The Bottom Line:
The IRS is now being pressured to determine whether three major nonprofits, including the Gates Foundation, have violated anti-discrimination laws.
If the AAER’s claims are accurate, these groups may be abusing their tax-exempt status.
No organization should receive taxpayer-funded benefits while excluding people based on race.
If proven, such policies must be stopped—and consequences enforced—to preserve fairness and equal protection under the law.
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