Charities would face new reporting rules and taxes for certain funding partnerships.
This bill would make charities share more details about how they work with other groups to raise money. It would also create new taxes for charities and their leaders if they don't properly control funds in these partnerships. Donors would lose tax breaks for giving to such arrangements.
Today, charitable organizations are not explicitly required to report detailed information about fiscal sponsorship arrangements, and there are no specific excise taxes on organizations or their managers for "improper conduit arrangements." After this bill, certain charities would have to report specific details about these arrangements. Charities would face an initial 20 percent tax (and up to 100 percent if uncorrected) on funds transferred through improper conduit arrangements, and their managers could face personal taxes (up to $10,000 initially, up to $20,000 if uncorrected). Donors would also lose their charitable deduction for contributions made through such improper arrangements.
HR 9721 · 119th Congress · July 16, 2026 · AI Summary by gemini-2.5-flash · 9/10
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