AAER Calls for IRS Investigation of Discriminatory Practices

Request for IRS Examination of Tax-Exempt Foundations
Today, the American Alliance for Equal Rights (AAER) took a significant step by formally requesting the Internal Revenue Service (IRS) to open investigations into the alleged racially discriminatory practices of three well-known tax-exempt organizations: the Lagrant Foundation, the Gates Foundation, and the Creative Capital Foundation.
Evidence of Discrimination Presented
In a series of letters directed to Mr. Robert Malone of the IRS's Exempt Organizations and Government Entities division, AAER presented compelling evidence suggesting that these organizations may have engaged in practices that explicitly exclude white Americans from benefits and opportunities based solely on their race. AAER contends that these practices contradict longstanding public policy and the precedent set by the Supreme Court regarding tax-exempt status under 26 U.S.C. §501(c)(3).
Targeting Specific Demographics
According to the correspondence from AAER, the Lagrant Foundation provides scholarships, mentorships, and career development opportunities exclusively for individuals classified as African American/Black, Alaska Native/Native American, Asian American/Pacific Islander, or Hispanic/Latino. This selective aid, they argue, fundamentally violates the principles laid out by the Supreme Court's decision in Bob Jones University v. United States, which determined that racial discrimination negates the eligibility for tax-exempt status.
Gates Foundation's Programs Under Scrutiny
Moreover, AAER raised concerns regarding the Gates Foundation's educational funding initiative known as the Gates Scholarship. This program offers comprehensive funding, including tuition, mentoring, and leadership development, but restricts eligibility solely to individuals identifying as racial or ethnic minorities. The letter to the IRS highlights that such programs clash with both IRS guidelines and recent Supreme Court rulings, specifically referencing Students for Fair Admissions v. Harvard, reaffirming the court's stance on racial discrimination.
Creative Capital Foundation's Exclusions
AAER further argues that the Creative Capital Foundation's program, titled the "Creative Capital Forward Fund," has allocated grants totaling up to $700,000 while providing extensive career support exclusively to creators who identify as Asian, Black, Indigenous, or Latinx. The exclusion of white artists raises significant concerns regarding compliance with IRS regulations as well as federal civil-rights legislation.
Citing Established Case Law
Throughout these letters, AAER references Bob Jones University v. United States, the IRS's Exempt Organizations Technical Guide, and various executive orders recently issued. These executive orders, particularly Executive Order 14173, call for the eradication of private-sector programs that favor race- or sex-based preferences, further solidifying AAER's position.
AAER's Mission and Statements
This initiative by AAER aligns with its broader mission to advocate for the removal of racial and ethnic classifications from American public policy and law. Edward Blum, the president of AAER, stated emphatically, "These organizations are free to operate as they wish—but not with the public subsidy provided by tax-exempt status. Racial discrimination in any form—from scholarships to professional development or artistic grants—contradicts public policy and should not be funded by American taxpayers."
Blum continued, "Organizations that engage in racial discrimination, regardless of their intentions, are ineligible for public subsidies through the tax code. The IRS has a duty to enforce the law concerning these practices. We urge them to act on this matter promptly."
The detailed letters submitted to the IRS are available for review, showcasing the depth and seriousness of AAER's claims.
Frequently Asked Questions
What is the American Alliance for Equal Rights (AAER)?
AAER is an organization dedicated to promoting equal rights by eliminating racial and ethnic distinctions in American law and public policy.
What prompted AAER's request for IRS investigations?
AAER seeks investigations due to evidence suggesting that specified organizations are discriminating based on race within their tax-exempt programs.
Which foundations are under investigation?
The foundations being scrutinized are the Lagrant Foundation, the Gates Foundation, and the Creative Capital Foundation.
What kind of practices is AAER claiming these foundations are involved in?
AAER claims that the foundations exclude white Americans from benefits, violating public policy and IRS regulations.
What is the broader mission of AAER?
AAER aims to eliminate racial and ethnic distinctions from American governance and ensure equality under the law.
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