A foreign group’s creation of a US ‘shell’ charity to gather US funds and funnel them abroad is the most obvious of ‘foreign conduits’ in IRS parlance,  #1 on its list of no-no’s. IRS revocation of 501(c)(3) status not only eliminates tax breaks for ordinary donors, but eliminates entirely crucial major gifts from private foundations like the Randolph Foundation, Ewing Marion Kauffman Foundation and the Paul E. Singer Foundation CC seems to break many rules. Foreign citizen Lomborg is simultaneously CCC founder, president, and highest-paid employee. Most people are a little more subtle when trying to create conduits, as in this example, where the IRS determined someone was not eligible for 501(c)(3) status, despite various stratagems to obscure the relationships.