The House Committee on Ways and Means approved four bills concerning tax-exempt organizations on July 22, 2026. The descriptions of the bills were released by the staff of the Joint Committee on Taxation.
Foreign Funding Transparency Act (H.R. 9772)
The Foreign Funding Transparency Act (H.R. 9772) would require disclosure by certain tax-exempt organizations of information relating to foreign contributions to such organizations. The bill would require Section 501(c) tax-exempt organizations that file Form 990 to disclose the total contributions they receive from foreign nationals. They would also separately report amounts associated with each designated “foreign country of concern.” Treasury could require these organizations to collect donor nationality information, although organizations could generally rely on donors’ representations unless they know or should know they are false. The requirements would apply to returns for taxable years beginning more than one year after enactment.
Stopping Foreign Influence in Elections Act of 2026 (H.R. 9771)
The Stopping Foreign Influence in Elections Act of 2026 (H.R. 9771) would penalize a Section 501(c) tax-exempt organization that makes contributions to a political entity after receiving a contribution from a foreign national during the preceding two years. The first violation would generally trigger a tax equal to 100% of the political contribution, rising to 200% for later violations; a third violation could also cause the organization to lose its federal income-tax exemption for two years. Larger tax-exempt organizations would face an additional penalty. The rules would apply to contributions made more than one year after enactment.
Fiscal Sponsorship Transparency Act of 2026 (H.R. 9721)
The Fiscal Sponsorship Transparency Act of 2026 (H.R. 9721) would require most Form 990-filing 501(c)(3) organizations to disclose key details about each fiscal sponsorship arrangement, including the parties, amounts transferred, activities, responsible officer, and arrangement dates. It would also target arrangements where a charity merely passes donations to a named nonexempt recipient without maintaining discretion and control: donor deductions would be denied, and the charity and responsible managers could face excise taxes, including higher penalties if the transfer is not corrected. This proposal comes as a follow up to the April 23, 2026 Treasury announcement of the plans to revise Form 990 to provide clearer reporting on certain activities of tax-exempt organizations, including fiscal sponsorship arrangements. The proposal would generally apply to taxable years beginning after December 31, 2027.
Fair Treatment of Religious Organizations Act of 2026 (H.R. 9722)
The Fair Treatment of Religious Organizations Act of 2026 (H.R. 9722) would provide that religious belief or practice concerning marriage, sexuality, or gender identity is not treated as inconsistent with law or public policy for purposes of determining whether an organization is organized or operated for tax-exempt purposes. Under the common law public policy doctrine, an organization is not organized or operated for exempt purposes if an activity of the organization is against public policy or is illegal. The proposal would be effective for taxable years beginning after December 31, 2025.
What Happens Next
The proposed bills still have to go through the House and Senate before they would make it to the President’s desk for signature and be signed into law. Schneider Downs will continue to monitor the developments and report on any progress.
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