Avenue Foundation faces IRS complaint over race-based grants

The American Alliance for Equal Rights has filed a complaint with the IRS against the Avenue Foundation, a Portland, Oregon-based nonprofit. The foundation’s ‘Avenues of Impact’ grant program provides $1,000 grants, marketing consulting, and coaching to small businesses, but requires applicants to be at least 50% owned by Black, Indigenous, or people of color (BIPOC).

According to the foundation’s own application and 2024 Form 990, the program excludes white business owners from applying regardless of merit or need. The foundation distributed $111,658 in grants under these criteria during its first year of operation.

Critics argue that the foundation’s race-based criteria violate public policy. Legal arguments cite the 1983 Supreme Court precedent in Bob Jones University v. United States, which held that organizations violating fundamental public policy against racial discrimination cannot maintain tax-exempt status.