H.R. 9721, the Fiscal Sponsorship Transparency Act of 2026, advanced out of committee on July 22, 2026.

What it does

This bill requires tax-exempt organizations (nonprofits) to disclose detailed information about 'fiscal sponsorship arrangements'—deals where they receive and manage money on behalf of other parties or projects. It also imposes new taxes on nonprofits and their managers who use 'improper conduit arrangements' (where money flows through a nonprofit to a specific outside person without the nonprofit exercising real control), with penalties ranging from 20% to 100% of the transferred amount, plus manager penalties up to $20,000.

Quorum's transparency scan gave Fiscal Sponsorship Transparency Act of 2026 a moderate transparency flag.

What happens next

H.R. 9721 advanced out of committee. Next stop: a floor vote.

Who is behind it

Filed by Lloyd Smucker.