FRONT Act

Increased Transparency for Nonprofits: Under Section 2(b), certain tax-exempt organizations receiving funding from "foreign countries of concern" would be required to provide statements, copies of written agreements, and the terms of oral agreements. This could help the public understand the influence of foreign funding on domestic organizations.

Detailed Disclosure of Activities: Section 2(b)(1)(B) requires these organizations to provide a full statement of existing or proposed activities resulting from receiving value from a foreign principal. This includes a detailed statement of any political activity, which may provide clarity on the nature of the organization's work.

Humanitarian Exception: Section 2(a)(2)(B) provides a waiver for organizations that solicit and collect funds outside of the United States for the purpose of providing humanitarian assistance, ensuring these specific activities are not treated under the same restrictions.

Increased Administrative Burdens for Tax-Exempt Groups: Under Section 2(b), organizations described as receiving income from foreign principals of countries of concern must submit detailed documentation, such as copies of written agreements and terms of oral agreements, or full statements of proposed activities if no contract exists.

Broad Definitions of Foreign Entities: Section 2(c)(2)(E) defines a foreign principal to include organizations in other countries that receive more than half of their funding from a foreign country of concern. This expands the scope of who must be reported and could affect a wider range of organizations and individuals.

Removal of Certain Filing Waivers: Section 2(a)(2)(A) specifies that the nonapplication of the waiver for entities filing reports under the Lobbying Disclosure Act of 1995 shall apply to the described organizations, which could limit certain existing exemptions.