To amend the Internal Revenue Code of 1986 to provide that 501(c)(3) organizations are liable for the use of funding provided as a fiscal sponsor.

House Bill

H.R. 7799

119th Congress

To amend the Internal Revenue Code of 1986 to provide that 501(c)(3) organizations are liable for the use of funding provided as a fiscal sponsor.

In Committee

Introduced:Mar 4, 2026

Primary Sponsor

Nathaniel Moran

R - TX

Cosponsors

0

Quick Stats

Summary

This bill would make tax-exempt charitable organizations legally responsible for how the groups they sponsor use donated money. When established nonprofits act as 'fiscal sponsors' for newer or smaller projects that don't have their own tax-exempt status, they would now be held liable if those funds are misused or spent improperly.

Latest Action

Referred to the House Committee on Ways and Means.

Introduced3/4/2026

StatusReferred to the House Committee on Ways and Means.

ChamberHouse

Data from Congress.gov

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Vote Prediction

To amend the Internal Revenue Code of 1986 to provide that 501(c)(3) organizations are liable for the use of funding provided as a fiscal sponsor.

This bill would make tax-exempt charitable organizations legally responsible for how the groups they sponsor use donated money. When established nonprofits act as 'fiscal sponsors' for newer or smaller projects that don't have their own tax-exempt status, they

Community Breakdown

Pass

0%

Fail

0%

0 predictions

This bill would make tax-exempt charitable organizations legally responsible for how the groups they sponsor use donated money. When established nonprofits act as 'fiscal sponsors' for newer or smaller projects that don't have their own tax-exempt status, they would now be held liable if those funds are misused or spent improperly.

Bill Number: 7799
Introduced: 3/4/2026
Status: Referred to the House Committee on Ways and Means.

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: To amend the Internal Revenue Code of 1986 to provide that 501(c)(3) organizations are liable for the use of funding provided as a fiscal sponsor.
Bill Number: 7799
Sponsor: No sponsor
Status: Referred to the House Committee on Ways and Means.
Introduced: 3/4/2026
Summary: This bill would make tax-exempt charitable organizations legally responsible for how the groups they sponsor use donated money. When established nonprofits act as 'fiscal sponsors' for newer or smaller projects that don't have their own tax-exempt status, they would now be held liable if those funds

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

This bill would make tax-exempt charitable organizations legally responsible for how the groups they sponsor use donated money. When established nonprofits act as 'fiscal sponsors' for newer or smaller projects that don't have their own tax-exempt status, they would now be held liable if those funds are misused or spent improperly.

Last updated: 3/5/2026

Key Points

Main provisions of the bill

Increases accountability for 501(c)(3) charitable organizations that serve as fiscal sponsors for other projects or groups
Makes sponsor organizations legally liable if the projects they support misuse funds or violate tax-exempt rules
Could impact how established nonprofits support grassroots initiatives, community projects, and startup organizations that rely on fiscal sponsorship to receive tax-deductible donations
Aims to prevent potential abuse of the charitable tax system by ensuring nonprofits vet and monitor the groups they sponsor more carefully

How This Impacts Americans

Potential effects on citizens and communities

This bill would primarily affect charitable organizations that provide fiscal sponsorship services, potentially making them more cautious about which projects they support. Grassroots groups, community initiatives, and newer organizations that depend on fiscal sponsors to receive donations could face more scrutiny or find it harder to secure sponsorship. Donors may benefit from increased oversight, though some worthy smaller projects might struggle to find established nonprofits willing to take on the added legal risk.

Policy Areas

No policy areas assigned yet.

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

7799, 119th Congress (2026). "To amend the Internal Revenue Code of 1986 to provide that 501(c)(3) organizations are liable for the use of funding provided as a fiscal sponsor.". Source: Voter's Right Platform. https://votersright.org/bills/119-hr-7799

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