H.R. 9721 · In committee · Taxation

Fiscal Sponsorship Transparency Act of 2026

What it does

Require charitable organizations filing Form 990 to report details of fiscal sponsorship arrangements to the IRS, including names of non-individual parties, aggregate amounts transferred, and responsible officers.
Impose excise taxes on charitable organizations and managers that fail to exercise discretion and control over contributions in fiscal sponsorship arrangements.
Disallow federal tax deductions for contributions made through improper conduit arrangements that lack proper organizational oversight and control.

Official 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…

Latest action

Jul 22, 2026: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 23 - 15.

Committee: House Ways and Means