SPONSOR Act

This bill would change federal tax law so that a 501(c)(3) charity that acts as a fiscal sponsor would be legally responsible for how sponsored funds are used. A fiscal sponsorship is when a charity receives and manages money for a project or group that is not tax-exempt. If donors get or are told they can get a tax deduction for gifts tied to that sponsorship, the charity would bear any criminal liability arising from it. The charity would also bear civil liability for certain activities, including aiding designated foreign terrorist groups, using force or threats to interfere with people exercising constitutional rights, and using force or blocking to stop the lawful movement of commerce. Charities would be presumed responsible for making sure sponsored funds follow the law, but could defend themselves by showing due diligence and reasonable oversight.

Full text and official record on Congress.gov

Sponsors

• Ted Cruz Republican sponsor
• 1 cosponsors