Bill · H.R. 9721· House(119-HR-9721)
Fiscal Sponsorship Transparency Act of 2026
- Introduced
- 7/16/2026
- Last activity
- 7/22/2026 — Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 23 - 15.
- Sponsored by
- Lloyd Smucker
- Cosponsors
- None
- Introduced
What this bill would do
This bill, known as the Fiscal Sponsorship Transparency Act of 2026, amends the Internal Revenue Code of 1986 to require specific reporting by certain charitable organizations regarding fiscal sponsorship arrangements. It sets rules for how tax-exempt organizations must report arrangements where they receive and administer funds on behalf of non-exempt persons or projects. The legislation denies tax deductions for contributions made under improper conduit arrangements. Additionally, the bill imposes initial and additional taxes on organizations and their managers for improper conduit arrangements where the organization fails to exercise proper discretion and control over funds. The new reporting and tax requirements apply to taxable years beginning after December 31, 2027.
Yes
Does this make what the government does easier for the public to see?+5
The bill enhances public oversight by mandating new disclosure requirements for fiscal sponsorship activities.
The opposite
Would high-income households be better off under this?-3
The bill may reduce tax deductions for individuals making contributions via improper conduit arrangements.
Does this raise the taxes companies pay?-3
The bill imposes new excise taxes on tax-exempt organizations that engage in improper conduit arrangements.
Would business owners be better off under this?-2
Organization managers face personal financial liability and taxes for participating in improper arrangements.
Who it would affect, and how
Potential Positive Impacts for People
- Increased Transparency: Under Section 2(a), applicable organizations are required to report specific details regarding each fiscal sponsorship arrangement, including the names of the parties involved, aggregate amounts made available or transferred, descriptions of activities, the name of the principal managing officer, and the start and end dates of the arrangement. This provision helps hold organizations accountable by making the details of these financial arrangements part of the public record.
Potential Negative Impacts for People
-
Taxes on Organizations: Under Section 2(c), a tax equal to 20 percent of the transferred amount is imposed on specified tax-exempt organizations for any amount transferred pursuant to an improper conduit arrangement, with an additional 100 percent tax if the transfer is not corrected within the taxable period. This could place a heavy financial burden on the organization if mistakes or improper transfers occur.
-
Penalties for Managers: Under Section 2(c), organization managers who knowingly agree to a transfer under an improper conduit arrangement face a 5 percent tax (up to $10,000), and an additional 50 percent tax (up to $20,000) if they refuse to agree to part or all of the correction. This creates personal financial liability for the officials managing these entities.
-
Loss of Tax Deductions for Donors: Under Section 2(b), contributions or gifts made under an improper conduit arrangement are excluded from the definition of a charitable contribution. This means individuals who donate under such arrangements will lose their tax deductions for those contributions.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For High Income Households-3Good For Business Owners-2
- Governance And Ideology
- Improves Government Transparency+5
- Economy And Finance
- Increases Corporate Taxes-3
- 7/22/2026
- Committee Consideration and Mark-up Session Held
- Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 23 - 15.
- 7/16/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.