YourVoice.Now Summary
Transparency & AccountabilityYour MoneyCorporate BenefitsCharities that raise money for outside projects would report each deal — and could be taxed for just passing donations along.
Transparency & Accountability
A charity that collects and holds money for an outside project would name the project, the amounts, the dates, and the person in charge on its yearly IRS filing. Those filings are generally open to the public.
A charity that collects gifts for a named person or group, and does not keep real control of the money, would owe 20 percent of the amount. If it does not get the money back, it would owe another 100 percent.
An officer, director, or trustee who agrees to such a transfer knowing what it is would owe 5 percent of the amount, up to $10,000. Refusing to help get the money back would cost 50 percent, up to $20,000.
Your Money
If you give to a charity that is only moving your gift on to a named person or group, the gift would no longer count as a charitable donation on your taxes. It would not matter that the charity is tax-exempt.
Corporate Benefits
The new reporting rule would skip private foundations and donor-advised funds, which are charity accounts a donor sets up and later directs. Other public charities would have to file the new details.
More about this bill
Most people would see no change in daily life. The bill would affect charities that take in and hold money for outside projects. That setup is called fiscal sponsorship. A local arts group with no tax-exempt status of its own can raise money through a larger charity that holds the funds. Those charities would have to list each deal on their yearly IRS filing. The list would name the other party, how much money moved, and what it paid for. It would also name who ran the deal and give its start and end dates. Most charities' yearly filings are open to the public. The bill would also tax a charity that simply passes donations to a named person or group without keeping real control of the money. That tax would be 20 percent of the amount, plus 100 percent more if the charity does not get the money back. Officers who knowingly sign off could owe money out of their own pockets. Donors would lose the tax write-off for gifts made through those pass-through deals. The rules would start with tax years that begin after December 31, 2027.
Congressional Summary
Fiscal Sponsorship Transparency Act of 2026 This bill requires certain charitable organizations to report to the Internal Revenue Service (IRS) information related to fiscal sponsorship arrangements. The bill also imposes excise taxes on improper conduit arrangements and disallows a federal tax deduction for contributions under such arrangements. The bill defines a fiscal sponsorship arrangement as an arrangement between a charitable organization required to file an annual information return with the IRS (Form 990) and a person that is not tax-exempt under which the organization (1) agrees (for consideration) to receive and administer contributions on behalf of the person, or (2) publicly solicits and agrees to receive and administer contributions for a specific project that furthers the organization’s tax-exempt purpose. The organization must retain discretion and control over the contributions, and the arrangement must be terminable by either party. The bill requires tax-exempt charitable organizations to report information related to fiscal sponsorship arrangements, including the names of the parties (other than individuals) to such arrangement, aggregate amounts transferred or made available for a specific project, and principal officer within the organization managing the arrangement. The bill imposes excise taxes on the organization and certain organization managers for amounts transferred under a similar arrangement if the organization fails to exercise discretion and control over the use of such funds. The bill defines this as an improper conduit arrangement. Finally, the bill disallows a tax deduction for contributions or gifts made under an improper conduit arrangement.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2026-07-16
- Date Added
- 2026-09-22
- Source
- Congress.gov →
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