Referred to the House Committee on Ways and Means.
The bill requires 501(c)(3) organizations (except private foundations and donor-advised funds) to report details about fiscal sponsorship arrangements, including parties, amounts, project descriptions, responsible officer, and dates. It defines fiscal sponsorships and creates a new prohibition denying charitable deductions for contributions made under an "improper conduit arrangement." The bill imposes excise taxes on organizations and managers for transfers under improper conduit arrangements, with initial and escalated penalties and manager caps, and tasks Treasury with regulatory definitions.
Transparency valued by left and center; conservatives emphasize federal overreach.
Relative to its intended legislative type, this bill is a detailed statutory package that creates new reporting obligations and tax penalties aimed at fiscal sponsorship and improper conduit arrangements, with precise statutory text and definitions but limited fiscal and administrative implementation detail.
The bill requires 501(c)(3) organizations (except private foundations and donor-advised funds) to report details about fiscal sponsorship arrangements, including parties, amounts, project descriptions, responsible officer, and dates.
It defines fiscal sponsorships and creates a new prohibition denying charitable deductions for contributions made under an "improper conduit arrangement." The bill imposes excise taxes on organizations and managers for transfers under improper conduit arrangements, with initial and escalated penalties and manager caps, and tasks Treasury with regulatory definitions.
The amendments apply to taxable years beginning after December 31, 2027.
A targeted but substantial tax-and-reporting proposal that will attract sector lobbying and require significant technical changes and bipartisan compromise to clear both chambers.
Relative to its intended legislative type, this bill is a detailed statutory package that creates new reporting obligations and tax penalties aimed at fiscal sponsorship and improper conduit arrangements, with precise statutory text and definitions but limited fiscal and administrative implementation detail.
Transparency valued by left and center; conservatives emphasize federal overreach.
These are examples from the analysis, not a ranked list of the most-affected groups.
Transparency valued by left and center; conservatives emphasize federal overreach.
Generally supportive of increased transparency and accountability for charities to prevent diversion of donor funds.
Sees the reporting and taxes as tools to protect charitable dollars and public trust, while worrying about administrative burdens on small community groups.
Would favor safeguards and capacity-building for under-resourced nonprofits.
Views the bill as a reasonable transparency measure but is cautious about compliance costs and unintended consequences.
Supports the goal of preventing improper conduits while seeking clearer definitions, thresholds, and a phased implementation.
Wants Treasury to issue narrow, administrable regulations and prefers targeted penalties with due process.
Skeptical of new federal reporting mandates and heavy tax penalties on charities and managers.
Views the bill as expanding IRS oversight into routine charitable arrangements, increasing regulatory burden and potential politicized enforcement.
Prefers narrower, less prescriptive rules and stronger due-process protections before imposing excise taxes.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
A targeted but substantial tax-and-reporting proposal that will attract sector lobbying and require significant technical changes and bipartisan compromise to clear both chambers.
The bill has not accumulated any surfaced votes yet.
Transparency valued by left and center; conservatives emphasize federal overreach.
A targeted but substantial tax-and-reporting proposal that will attract sector lobbying and require significant technical changes and bipar…
Relative to its intended legislative type, this bill is a detailed statutory package that creates new reporting obligations and tax penalties aimed at fiscal sponsorship and improper conduit arrangements, with precise s…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.