Watchdog Group Questions Nonprofit’s Tax-Exempt Status Linked to Chinese Government
A watchdog organization is raising concerns about the tax-exempt status of certain nonprofits that appear to be receiving funding from entities associated with the Chinese government.
The Center for Advances in America (CASA) filed a complaint with the Internal Revenue Service (IRS) on Monday regarding the Chinese American Planning Council (CPC). This complaint is significant, especially after recent undercover video surfaced showing a CPC seminar allegedly instructing attendees on methods to evade deportation.
“We have serious doubts about CPC’s compliance with federal laws governing tax-exempt status under section 501(c)(3),” CASA’s director mentioned. “It’s troubling that CPC might be utilizing funds from sources tied to the Chinese government to support potentially unlawful activities.” The organization emphasized that these concerns warrant a comprehensive investigation into the nonprofit’s funding and operations.
The CPC has not provided any responses to inquiries from the media.
Established in 1965, the CPC aims to support Chinese-Americans, immigrants, and low-income communities throughout New York City. The organization describes itself as the largest Asian American social services provider in the U.S., managing over 50 programs in locations across Queens, Brooklyn, and Manhattan.
An IRS spokesperson stated that federal employees are legally prohibited from disclosing any tax return information, which includes confirming if they are reviewing a particular organization.
The troubles for CPC began after a surveillance operation linked to a research agency previously affiliated with the Heritage Foundation released footage in April, indicating CPC staff were coaching participants on strategies to avoid Immigration and Customs Enforcement (ICE) agents.
Following this footage, the House Homeland Security Committee initiated an inquiry into CPC. They sought relevant documents and communications tied to the immigration seminar, emphasizing the need to understand how taxpayer funds—amounting to around $1 million—were utilized in recent years.
The surveillance project reportedly featured Carlin Cohen, CPC’s top policy and public relations officer, advising the audience on evading immigration officers. Additionally, Janis Northia, representing the New York Immigration Union, was also filmed discussing ways to limit encounters with ICE agents.
According to information from the House Homeland Security Committee, about 55% of CPC’s total revenue is derived from federal and state grants. Since 2022, the organization has received upwards of $1.4 million in federal funding from the Department of Health and Human Services, which could be further boosted by additional state resources.
While local entities are legally allowed to assist individuals avoiding ICE, overt obstructions to federal immigration initiatives are against the law. Border Enforcement leader Tom Homan has expressed intent to hold accountable those who break such laws. Attorney General Pam Bondy has called for deeper investigations into groups aiding undocumented immigrants.
“It’s already a problem to help those who violate our laws evade law enforcement, but if taxpayer dollars are involved, that’s even worse,” Bondy stated, emphasizing the financial burden taxpayers face due to ongoing border challenges.
A subsequent investigation revealed that CPC has been receiving funds from organizations linked to the Chinese government. Financial records assessed by CASA indicated that since 2018, NYC nonprofits have acquired as much as $445,969 from these sources. This includes relationships with state-owned enterprises such as the China Industrial and Commercial Bank (ICBC) and the Bank of China.
CASA pointed to the CPC’s anti-ICE seminars, alongside cash tied to the Chinese government, as justifications for the IRS to assess the organization’s tax-exempt status.
“While foreign donations to 501(c)(3) organizations are usually allowed, we are particularly worried about the implications of potential ties between these foreign donors and the Chinese government and any illegal activities associated with them,” CASA’s director explained, urging for a full investigation into these matters.
