Some of the left’s biggest nonprofit institutions could be about to lose one of their most valuable assets: Their tax-exempt status.
Treasury Secretary Scott Bessent and the IRS are preparing a broad review of nonprofits suspected of abusing the tax code, with George Soros’ Open Society Foundations, the Southern Poverty Law Center and the Council on American-Islamic Relations among the groups being scrutinized, according to three sources briefed on the internal deliberations.
The effort is part of a broader Trump Administration crackdown on what officials have described as “bogus” charities.
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Bessent’s team is drafting a framework that could strip non-compliant organizations of their 501(c)(3) status, according to two people familiar with the plans.
That could mean back taxes.
And potentially major civil penalties.
The administration is leaning in part on a 2025 executive order from President Donald Trump targeting nonprofits deemed to operate with a “substantial illegal purpose,” including organizations allegedly connected to political violence, unrest or other unlawful activity.
Other groups reportedly under scrutiny include the Private Equity Stakeholder Project, Athena Coalition, MediaJustice and the Strategic Organizing Center, along with its parent union, the Service Employees International Union.
One source described Treasury officials as “like a dog with a bone.”
“There’s a lot of internal pressure to get it done,” the source said, adding that some at the IRS were still moving too slowly.
“That is expected to change very soon.”
The legal fight has already started.
Protect Democracy sued Treasury and the IRS earlier this year, accusing the administration of weaponizing the tax code against political opponents and violating the First Amendment rights of progressive organizations.
The administration’s case will ultimately come down to something much less political: Whether these groups are actually operating within the rules required to keep their tax exemption.
If not, the tax breaks could disappear.
Full report over at The New York Post:
Trump admin set to target George Soros nonprofit, Southern Poverty Law Center and CAIR in major tax crackdown: sources https://t.co/IRJIsV7y98 pic.twitter.com/mu0T4A0dbk
— New York Post (@nypost) August 27, 2026
