Charities would report more details on money handled for other groups, face taxes for misuse.
This bill would require certain charitable organizations to provide more information to the IRS about how they manage money for other groups. It would also create new taxes for charities and their leaders if they knowingly use these arrangements improperly. Donors would no longer be able to deduct contributions made through these improper arrangements.
Today, charities are not explicitly required to report detailed information about fiscal sponsorship arrangements, and there are no specific taxes for improper use of these arrangements. Also, contributions to such arrangements may still be tax-deductible. If this bill passes, certain charities would have to report specific details about these arrangements to the IRS, and both organizations and their managers would face new taxes (20% or 5% initially, up to 100% or 50% additionally) for knowingly participating in improper arrangements. Donors would also lose the ability to deduct contributions made through these improper setups.
S 5083 · 119th Congress · July 22, 2026 · AI Summary by gemini-2.5-flash · 9/10
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