Acting Attorney General Todd Blanche authorized the Justice Department to investigate the financial workings of a network of nonprofits funded by tech financier Neville Roy Singham, according to sources familiar with the matter. U.S. Attorney for the Southern District of New York Jay Clayton is leading the probe into what critics describe as a system of fiscal sponsorships designed to obscure funding flows from law enforcement and tax authorities.
Sen. Ted Cruz, R-Texas, has introduced legislation called the Stop Proxy Organizations Nurturing Subversive Operations and Riots Act (SPONSOR Act) that would strip tax-exempt status from individuals and organizations funneling funds to nonprofits engaged in political violence. The bill would amend the Internal Revenue Code to expand criminal and civil liability for 501(c)(3) nonprofits regarding violations by their sponsored entities.
According to a Fox News Digital investigation, Singham has routed $278 million into the network of nonprofits since 2017, including $22.44 million through Goldman Sachs Donor Advised Philanthropy Fund For Wealth Management Inc. The funds reached organizations including The People's Forum Inc., a Manhattan-based 501(c)(3) nonprofit hub for progressive political activity.
What the Right Is Saying
Cruz has argued that loopholes in the Internal Revenue Code allow radical groups to use tax-exempt funds to bankroll violent and anti-American activity opaquely and with impunity, citing demonstrations on college campuses and in American cities. The senator contends his bill would give law enforcement tools to follow money flows and enforce accountability.
"The DOJ is absolutely right to investigate Neville Roy Singham's funding network, which has been critical in bankrolling those efforts," Cruz told Fox News Digital. "I've long said that Democrat billionaires are funding left-wing political violence to push anti-American and foreign-aligned interests through tax-exempt entities."
Sen. Jim Banks, R-Indiana, called Singham a "traitor" and argued his nonprofit network poses a national security threat due to alleged ties to the Chinese Communist Party. Rep. Nathaniel Moran, R-Texas, who introduced the House version of the SPONSOR Act, said Congress has a duty to safeguard nonprofit system integrity and ensure tax laws are not exploited by extremist groups operating in shadows.
The legislation is co-sponsored by Sen. Ted Budd, R-North Carolina. Cruz chairs the Senate Judiciary Subcommittee on Federal Courts, Oversight, Agency Action and Federal Rights, which oversees grants to the Justice Department and regularly holds hearings with DOJ officials.
What the Left Is Saying
Civil liberties advocates and some Democratic lawmakers have raised concerns about the scope of Cruz's legislation, arguing it could be used to target legitimate advocacy groups protected under the First Amendment. Critics contend that expanding liability for fiscal sponsorships could chill constitutionally protected speech and association rights for organizations across the political spectrum.
Progressive organizations targeted in federal investigations have historically argued that their activities—including protests against immigration enforcement and demonstrations in support of Palestinian rights—represent lawful exercises of constitutional rights rather than criminal conduct. Defense attorneys and civil liberties groups note that nonprofit status is determined by tax authorities based on specific legal criteria, not political ideology.
Some Democratic critics suggest the timing of the DOJ investigation aligns with broader Republican efforts to scrutinize left-leaning organizations, raising questions about selective enforcement priorities. The Congressional Progressive Caucus has previously defended nonprofit advocacy as protected activity when conducted within legal boundaries.
What the Numbers Show
$278 million: Total amount Singham has funneled into his nonprofit network since 2017, according to Fox News Digital investigation findings.
$22.44 million: Amount routed through Goldman Sachs Donor Advised Philanthropy Fund For Wealth Management Inc. to The People's Forum Inc., a Manhattan-based 501(c)(3) organization that serves as a fiscal sponsor for multiple proxy organizations.
The Singham network includes organizations such as CodePink, Venceremos Brigade (which has worked with Cuban government officials for decades), and ICE Out of New York, which coordinates protests against immigration enforcement operations. Singham's wife Jodie Evans co-founded CodePink, according to the investigation.
The SPONSOR Act would create new civil and criminal liability standards for 501(c)(3) organizations that fund entities engaged in what federal law defines as political violence or subversive activities. Current IRS regulations focus on the primary activities and stated missions of nonprofit organizations rather than their downstream funding relationships.
The Bottom Line
The convergence of DOJ investigation authority and legislative action represents an escalation in Republican efforts to scrutinize funding flows to progressive advocacy organizations. Singham, who lives in Shanghai and holds U.S. citizenship, has not responded to repeated requests for comment from Fox News Digital over several months.
If enacted, the SPONSOR Act would fundamentally alter how fiscal sponsorship arrangements work within the nonprofit sector, potentially requiring 501(c)(3) organizations to monitor and verify legal compliance throughout their funding chains. The legislation faces an uncertain path in Congress, where similar bills targeting nonprofit accountability have previously stalled.
Legal experts note that any expansion of nonprofit liability would likely face constitutional challenges centered on First Amendment protections for speech and association. Courts have historically scrutinized IRS enforcement actions against politically active organizations, requiring specific evidentiary standards to demonstrate violations warranting tax-exempt status revocation.