SPONSOR Act

This bill would change the federal tax code so that a 501(c)(3) tax-exempt charity acting as a fiscal sponsor would be legally responsible for how sponsored funds are used. A fiscal sponsorship is defined as a charity receiving and managing funds for a project or group that is not tax-exempt, while keeping control over those funds. If donors get, or are told they can get, a tax deduction for giving to the sponsorship, the charity would bear any criminal liability tied to it, plus civil liability for certain activities. Those activities include aiding acts of international terrorism by designated foreign terrorist organizations, using force or threats to interfere with people exercising constitutional rights, and using force or physical blocking to stop the lawful movement of goods in commerce. The charity would be presumed responsible for making sure sponsored funds follow the law, but could defend itself by showing due diligence and reasonable oversight.

Full text and official record on Congress.gov

Sponsors

• Nathaniel Moran Republican sponsor
• 0 cosponsors