Microsoft co-founder Bill Gates' non-profit organisation is facing racial discrimination allegations. The Bill and Melinda Gates Foundation along with two other organisations are facing allegations of running scholarship and career advancement programs that discriminate against white Americans. The American Alliance for Equal Rights (AAER) has accused the Gates Foundation , the Lagrant Foundation , and the Creative Capital Foundation of “intentionally” excluding white people, a claim detailed in letters sent to the IRS. The AAER argues that these alleged discriminatory practices may violate federal law and provide sufficient grounds for the IRS to revoke the organisations’ tax-exempt status .
What AAER said about Gates Foundation and other non-profits
In three separate letters sent to Robert Malone of the IRS's Exempt Organizations and Government Entities division, AAER said that these non-profits have engaged in practices that categorically exclude white Americans from benefits and opportunities based solely on race.
AAER alleges that the Lagrant Foundation offers scholarships, mentorships, and career development only to applicants from minority groups, violating Supreme Court precedent set in Bob Jones University v. United States.
The complaint also claims that the Gates Foundation’s Gates Scholarship is open exclusively to racial or ethnic minorities, and the Creative Capital Foundation’s "Creative Capital Forward Fund" provides grants only to non-white creators.
AAER asserts these race-based exclusions conflict with longstanding public policy, IRS guidelines, and recent court rulings, and cites multiple legal references—including executive orders—to support its claim that such practices risk revoking the organizations’ tax-exempt status.
In a statement, Edward Blum, president of AAER said: “These organizations are free to operate as they wish—but not with the public subsidy that tax-exempt status provides. Racial discrimination—whether in scholarships, professional development, or artistic grants—violates public policy and must not be underwritten by American taxpayers. Organizations that discriminate based on race—whether their intentions are benevolent or not—are not eligible for public subsidies through the tax code. The IRS must act to uphold the law.”
What AAER said about Gates Foundation and other non-profits
In three separate letters sent to Robert Malone of the IRS's Exempt Organizations and Government Entities division, AAER said that these non-profits have engaged in practices that categorically exclude white Americans from benefits and opportunities based solely on race.
AAER alleges that the Lagrant Foundation offers scholarships, mentorships, and career development only to applicants from minority groups, violating Supreme Court precedent set in Bob Jones University v. United States.
The complaint also claims that the Gates Foundation’s Gates Scholarship is open exclusively to racial or ethnic minorities, and the Creative Capital Foundation’s "Creative Capital Forward Fund" provides grants only to non-white creators.
AAER asserts these race-based exclusions conflict with longstanding public policy, IRS guidelines, and recent court rulings, and cites multiple legal references—including executive orders—to support its claim that such practices risk revoking the organizations’ tax-exempt status.
In a statement, Edward Blum, president of AAER said: “These organizations are free to operate as they wish—but not with the public subsidy that tax-exempt status provides. Racial discrimination—whether in scholarships, professional development, or artistic grants—violates public policy and must not be underwritten by American taxpayers. Organizations that discriminate based on race—whether their intentions are benevolent or not—are not eligible for public subsidies through the tax code. The IRS must act to uphold the law.”
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