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H.R. 9721119th CongressIn markupLatest action Jul 22, 2026Decoded by AI · checked against the record
Official title: Fiscal Sponsorship Transparency Act of 2026
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
Charities sponsoring other groups would face new IRS reporting rules and penalties starting in tax year 2028.
45-second read · 5 questions answered below
The bill requires charities in "fiscal sponsorship" arrangements to report yearly details to the IRS, including partners, money transferred, its use, and the responsible overseer. It also penalizes "improper conduit arrangements" where a charity passes along donations without real control over their use, making such donations non-deductible.
This affects nonprofits that sponsor other groups or projects, including small nonprofits, community organizations, and startup charities, as well as donors who give to these arrangements.
The rules would add compliance and recordkeeping burdens for charities, and donors could lose tax deductions if an arrangement is found improper.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 23 - 15.