Bill requires nonprofits to report money deals and penalize misuse.
S. 5083 — Fiscal Sponsorship Transparency Act of 2026 · Filed by Tom Cotton (R-AR) · Introduced Jul 22, 2026 · Referred to committee
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What it does
The bill makes tax-exempt nonprofits report details about sponsorship deals. A sponsorship deal is when a nonprofit gets money for another group or project. The bill adds steep extra taxes of 20 to 100 percent. These taxes hit nonprofits and their leaders who knowingly send donations to non-tax-exempt groups. They must show they have real control over the money.
Who it affects
Tax-exempt nonprofits and their leaders face new reporting rules and extra taxes. Donors and the public get more facts about how nonprofit money is used. Smaller nonprofits may face more compliance costs.
One thing to notice
The bill does not define what control means. The Treasury Department will write rules later to explain it.
From the analysis of the bill text, linked under Primary records below.
Where it stands
- Jul 22, 2026 — Introduced · Congress.gov: “Introduced in Senate”
- Jul 22, 2026 — Referred to Senate Committee on Finance · Congress.gov: “Read twice and referred to the Committee on Finance”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Words to know
- tax-exempt — An organization that does not pay federal income taxes because it serves the public good.
- sponsorship deal — A deal where a nonprofit gets money for another group or project.
- control — The power to make decisions about how money is used and to manage it.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (8,414 characters) on Aug 12, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 14,707 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-09-23.
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