Fiscal Sponsorship Transparency Act of 2026

This bill changes federal tax law for charities that act as fiscal sponsors, meaning they receive and manage money on behalf of people or groups that are not tax-exempt. Covered charities would have to report each sponsorship arrangement on their annual IRS return, including the parties involved, the amounts provided, the related activities, a managing officer, and start and end dates. The bill creates a tax on charities that knowingly pass donations through to a specific non-exempt person without keeping discretion and control over the funds, along with taxes on managers who approve such transfers. Donations made under these arrangements would not count as tax-deductible charitable contributions. The changes would apply to tax years beginning after December 31, 2027.

Full text and official record on Congress.gov

Sponsors

• Tom Cotton Republican sponsor
• 0 cosponsors