The House Ways and Means Committee has opened an investigation to find out why the U.S. Chamber of Commerce Foundation has received millions in donations from an organization whose objectives appear hostile to American businesses.
The Chamber of Commerce, a 501(c)(6) tax-exempt entity, is the world’s largest business organization and claims to “advocate, connect, inform, and fight for business growth and America’s success.” The Chamber foundation is a 501(c)(3) nonprofit and is also tax exempt.
The Tides Foundation, also known simply as Tides, is a 501(c)(3) nonprofit funded by George Soros that collaborates “with like-minded funders” to “shift resources to communities historically denied power,” according to its website.
Questioning Tax-Exempt Status
Mr. Smith’s letter points to the partnership between Tides and “anti-business organizations” such as the International Corporate Accountability Roundtable (ICAR).
Tides also supports initiatives such as the “Immigrants Belong Fund,” which aims to overcome public perception that an expanded immigrant labor market would pose a danger to America’s “economy and way of life,” and the “Frontline Justice Fund,” which provides grants to support environmental litigation.
In an emailed statement to The Epoch Times, a Tides spokesperson said the organization is “aware of and monitoring” the committee’s request to the Chamber regarding the contributions it accepted from Tides.
The spokesperson said the $12 million given to the Chamber foundation was used for the “Hiring Our Heroes” program, which connects the military community with American businesses to create economic opportunity and a strong and “diversified workforce.”
“It is our view that the request for comment is a politically motivated PR tactic during an election year, driven by actors who disagree with the social justice work of Tides and our partner organizations,” the Tides spokesperson said. “Tides is proud to partner with a broad range of organizations, including 60+ corporate partners, to support social impact and grantmaking programs.”
In the letter, Mr. Smith said the Chamber of Commerce and the Chamber of Commerce Foundation have until 5 p.m. on May 20 to respond to the committee’s questions.
Corporations and Nonprofits
Bill Flaig is the co-founder and CEO of the American Conservative Values Fund, an investment alternative for politically conservative investors that prioritizes shareholder returns and divesting from companies they believe are hostile to conservative values.The fund is an exchange-traded fund (ETF), which is a collection of securities that can be purchased or sold through a brokerage firm on a stock exchange.
Mr. Flaig told The Epoch Times that the push to prioritize diversity, equity, and inclusion (DEI) and environmental and social governance (ESG) policies in the nonprofit world is analogous to the same push in the corporate world.
Just as the focus of a corporation is supposed to be enhancing shareholder value, the priority of the Chamber should be promoting policies that benefit American businesses, Mr. Flaig said.
He also said there is no need for nonprofits such as the Chamber or Tides to push DEI and ESG programs into the business community because most of them already have those policies.
“We see a lot of this, particularly in the technology and financial services sector,” he said.
Anything that isn’t focused on stakeholder value is a misuse of shareholders’ money, he said, and DEI is one of the biggest abuses. The American Conservative Values Fund operates under the premise that the best thing for shareholders is to have the best person in each position, not people who satisfy a checklist of diversity, he said.
“To me, the Chamber of Commerce has become a reflection of corporate America, as sad as that is,” he said.
He said the Chamber’s partnership with organizations such as Tides, which advocate for DEI and ESG policies in the business community, may reflect the beliefs of the Chamber’s leadership.
“This is what we see in corporate America,” Mr. Flaig said. “The CEO or management buy into DEI and social justice and push it onto the company. We could have that happening at the Chamber. They may be under a lot of political pressure from the left, so they may have fallen victim to that. It’s a bad trend.”
