Senator Ted Cruz, a Republican from Texas, is re-emphasizing his legislative proposal aimed at removing the tax-exempt status from individuals and groups that direct money toward nonprofits implicated in political violence. This renewed push comes as the Department of Justice actively scrutinizes the financial dealings of prominent far-left financier Neville Roy Singham.
Introduced in March, Cruz’s legislation, titled the Stop Proxy Organizations Nurturing Subversive Operations and Riots (SPONSOR) Act, seeks to modify the Internal Revenue Code. The proposed amendments would broaden the accountability of 501(c)(3) nonprofit organizations for the entities they finance or support.
Under the provisions of the SPONSOR Act, such nonprofits would face both criminal and civil liability for any legal infractions committed by the organizations they sponsor. Critics have asserted that nonprofits within Singham's network utilize fiscal sponsorships to allegedly evade detection by law enforcement agencies and tax authorities.
Senator Cruz stated that his motivation for introducing the SPONSOR Act was to “give law enforcement the tools they need to follow the money, close these loopholes and enforce accountability.”
Scrutiny of the Singham Network
Neville Singham reportedly channeled his financial contributions through the Goldman Sachs Donor Advised Philanthropy Fund For Wealth Management Inc., a donor-advised fund. This included a significant sum of $22.44 million directed to The People's Forum Inc., a 501(c)(3) nonprofit operating in Manhattan, identified as a central hub for far-left activities.
The People’s Forum maintains connections with several associated organizations. Among these is the Venceremos Brigade, a controversial group that has collaborated with Cuban government officials for decades, facilitating trips for American activists to Cuba for political and labor solidarity initiatives. The donation information for the Venceremos Brigade explicitly identifies it as a fiscally-sponsored project under The People’s Forum.
Another entity, ICE Out of New York, known for mobilizing activists to protest Immigration and Customs Enforcement (ICE) operations, also utilizes The People’s Forum for hosting events and has participated in numerous demonstrations alongside coordinators from The People’s Forum.
Legislative Intent and Broader Concerns
Upon the bill's initial introduction, Senator Cruz issued a statement highlighting his concerns:
“Loopholes in the Internal Revenue Code allow radical groups to use tax-exempt funds to bankroll violent, anti-American activity opaquely and therefore with impunity.” He further elaborated, “The violence that has spread in recent years in our cities and on our college campuses is not organic. It is enabled by funding from well-resourced organizations that exploit such loopholes, including and especially through fiscal sponsorships.”
The SPONSOR Act has garnered support from other Republican lawmakers, including Senator Ted Budd of North Carolina, who co-sponsors the bill. In the House of Representatives, an equivalent version of the legislation was introduced by Representative Nathaniel Moran of Texas. Representative Moran emphasized,
“Congress has a duty to safeguard the integrity of our nonprofit system and ensure our tax laws are not exploited by extremist or radical groups operating in the shadows.”
Senator Cruz chairs the Senate Judiciary Subcommittee on Federal Courts, Oversight, Agency Action and Federal Rights. This subcommittee holds oversight responsibilities for grants allocated to the Justice Department and is involved in the regulation of the judicial system. It regularly conducts hearings that include officials from the Justice Department.
Senator Cruz is not alone among GOP legislators in criticizing Singham's alleged pro-Chinese Communist Party (CCP) influence within the United States. Senator Jim Banks, an Indiana Republican, went as far as to label Singham a “traitor.”
Senator Banks elaborated on his strong remarks, stating:
“Neville Singham is a traitor to our country. He has ties to the CCP. He is an American citizen, but all of his loyalties lie with the Chinese Communist Party. And when you begin to untangle the web of his massive fortune and his philanthropic activities, the money that he sends to left-wing groups in America, and not just groups that espouse ideologies, but espouse violence.”
