House Panel Approves Measure to Require Nonprofits Disclose Foreign Donations

The House Ways and Means Committee advanced legislation Wednesday that would mandate tax-exempt organizations disclose donations received from foreign nationals to the Internal Revenue Service. The Foreign Funding Transparency Act passed 23-18 and represents an effort to prevent foreign money from flowing into American political operations through nonprofit channels. Committee Chairman Jason Smith, R-Mo., characterized the measure as a necessary step to combat what he views as systematic foreign interference in U.S. affairs.

Smith argued in a statement that foreign donations undermine American democracy by funding what he described as coordinated campaigns designed to manipulate public opinion and spread propaganda. The chairman contended that many demonstrations appearing spontaneous are actually orchestrated by interconnected groups receiving substantial foreign financial backing. He warned that networks of well-funded nonprofits have benefited from tax-exempt status while simultaneously accepting direction and resources from international sources.

The bill’s advancement follows remarks by Secretary of State Marco Rubio, who convened representatives from more than 60 nations earlier this month to discuss combating international funding of extremist movements. Rubio identified what he termed far-left political terrorism as requiring coordinated global response, noting that hostile foreign states have worked with certain organizations to finance unrest through encrypted communications and cross-border training networks.

The committee specifically referenced Neville Roy Singham, a 72-year-old American entrepreneur based in Shanghai, in connection with the legislation’s passage. Singham sold his technology company for $785 million in 2017 and has directed $278 million toward a network of nonprofits since then, according to reporting by Fox News Digital. The businessman, who has funded pro-Chinese Communist Party organizations operating domestically, did not respond to requests for comment regarding the committee’s actions.