Bill · S. 5083· Senate(119-S-5083)
Fiscal Sponsorship Transparency Act of 2026
- Introduced
- 7/22/2026
- Last activity
- 7/22/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Tom Cotton
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Fiscal Sponsorship Transparency Act of 2026 aims to amend the Internal Revenue Code regarding fiscal sponsorship arrangements. It requires certain charitable organizations to report specific details about these arrangements, including the names of parties involved, amounts transferred, and descriptions of activities. The bill defines a fiscal sponsorship arrangement and establishes rules for "applicable organizations." Additionally, it prohibits deductions for contributions made under "improper conduit arrangements." Finally, it imposes various taxes on organizations and managers involved in such improper arrangements.
Yes· 3 of 5
Does this make what the government does easier for the public to see?+6
The bill requires specific reporting of parties, amounts, and activities involved in fiscal sponsorship arrangements.
Does this raise the taxes companies pay?+5
The bill imposes a 20 percent tax on specified tax-exempt organizations that knowingly transfer funds via improper conduit arrangements.
Does this make the government pay for what it commits to?+2
The bill introduces penalties and taxes to ensure charitable organizations maintain control over funds, aiming for more disciplined financial management.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Transparency: The bill requires organizations to report the name of each party in a fiscal sponsorship arrangement, the amounts transferred, a description of the activities, the name of a principal officer, and the start and end dates of the arrangement (Section 2(a)(1)).
-
Accountability for Fund Management: By requiring the reporting of aggregate amounts and descriptions of activities (Section 2(a)(1)), the bill seeks to track how funds are used within these arrangements.
-
Prevention of Improper Transfers: The bill defines "improper conduit arrangements" as those where an organization fails to exercise discretion and control over the use of funds (Section 2(c)(1)(d)(2)), providing a framework to prevent such arrangements.
Potential Negative Impacts for People
-
Financial Penalties for Organizations: A 20 percent tax is imposed on a specified tax-exempt organization that knowingly transfers amounts pursuant to an improper conduit arrangement (Section 2(c)(1)(a)(1)).
-
Heavy Penalties for Uncorrected Transfers: If a transfer under an improper conduit arrangement is not corrected within the taxable period, a tax equal to 100 percent of the amount of the transfer is imposed on the organization (Section 2(c)(1)(a)(2)).
-
Financial Burdens on Management: Organization managers may be taxed 5 percent of the amount transferred if they agree to the transfer knowing it is an improper conduit arrangement (Section 2(c)(1)(a)(2)). Additionally, managers who refuse to agree to a correction can be taxed 50 percent of the amount of the transfer (Section 2(c)(1)(a)(2)).
-
Loss of Tax Deductions: The bill specifies that the term "charitable contribution" shall not include any contribution or gift made under an improper conduit arrangement (Section 2(b)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Increases Corporate Taxes+5Improves Fiscal Responsibility+2
- Governance And Ideology
- Improves Government Transparency+6
- Demographic And Interest Groups
- Good For Low Income Households+1
- Social Issues And Justice
- Improves Poverty Reduction+1
- 7/22/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
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.