Exclusive | Scott Bessent eyes top cop for Treasury to crack down on shady nonprofits

Treasury Secretary Scott Bessent is looking to recruit a new “top cop” to police nonprofits that “use and abuse” their charity status to dodge taxes, The Post has learned.Bessent wants to appoint a new senior official at the Treasury Department to scrutinize the finances of charities that engage in excessive political activities, lobbying, or even fraud.The secretary’s recently departed chief of staff, Michael Friedman, was tasked with drumming up some names for possible candidates before he left to join the SEC three weeks ago.It comes after The Post broke the news in December that the Treasury Department was eyeing a crackdown on nonprofit organizations that enjoy cushy tax-free benefits amid fears that some groups have been funneling “dark money” into shady political activities.The official will be “empowered to act as an interagency government task force to tackle ‘abusive’ 501(c)3 organizations,” said a source briefed on the matter, referring to the parts of the IRS code that govern how charities are treated.“That person has to be committed for the next three years and not someone who is going to use it as a stepping stone,” the insider added.A Treasury Department spokeswoman referred The Post back to a Jan.9 statement that said Secretary Bessent “remains committed to preventing fraudulent nonprofits from taking advantage of the American taxpayer.”The search for a charity cop comes after the Minnesota Somali fraud scandal, when it emerged that nonprofits falsely claimed to provide meals to needy children and skimmed off federal funds to spend on luxury travel and real estate.

Morning Report delivers the latest news, videos, photos and more.Please provide a valid email.

By clicking above you agree to the Terms of Use and Privacy Policy.Never miss a story.

During the scandal, a letter signed by Rep.Jason Smith (R-Mo.), the chair of the House of Representatives’ Ways and Means Co...