H.R. 9721 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Jul 16, 2026
What this bill does
In plain words · AI-written from the official summaryAdds transparency rules for charity fiscal sponsorships
When charities receive and manage money on behalf of other people or projects, they currently don't have to report much about it to the IRS. This bill would require charities to report details about these sponsorship arrangements, including who's involved, how much money moves through them, and which charity official oversees them. It also sets up taxes and penalties if charities aren't actually controlling how the money gets used, and it removes the tax deduction for donations made through these improper arrangements.
How it affects you
If you donate to a charity that's sponsoring a project for someone else, this could affect your taxes if the charity isn't properly overseeing how your money is used. Charities that work with fiscal sponsorship arrangements will need to report more information to the IRS, which could change how they operate. The bill is mainly aimed at making sure charitable money is handled transparently and stays under proper control.
Read the official summary (Introduced in House, Jul 16, 2026)
Fiscal Sponsorship Transparency Act of 2026
This bill requires certain charitable organizations to report to the Internal Revenue Service (IRS) information related to fiscal sponsorship arrangements. The bill also imposes excise taxes on improper conduit arrangements and disallows a federal tax deduction for contributions under such arrangements.
The bill defines a fiscal sponsorship arrangement as an arrangement between a charitable organization required to file an annual information return with the IRS (Form 990) and a person that is not tax-exempt under which the organization (1) agrees (for consideration) to receive and administer contributions on behalf of the person, or (2) publicly solicits and agrees to receive and administer contributions for a specific project that furthers the organization’s tax-exempt purpose. The organization must retain discretion and control over the contributions, and the arrangement must be terminable by either party.
The bill requires tax-exempt charitable organizations to report information related to fiscal sponsorship arrangements, including the
• names of the parties (other than individuals) to such arrangement,
• aggregate amounts transferred or made available for a specific project, and
• principal officer within the organization managing the arrangement.
The bill imposes excise taxes on the organization and certain organization managers for amounts transferred under a similar arrangement if the organization fails to exercise discretion and control over the use of such funds. The bill defines this as an improper conduit arrangement.
Finally, the bill disallows a tax deduction for contributions or gifts made under an improper conduit arrangement.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
2nd SessionH. R. 9721
A BILL
Fiscal Sponsorship Transparency Act of 2026
Sponsor: Rep. Lloyd Smucker (R-PA-11) · Introduced Jul 16, 2026 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Jul 22, 2026: “Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 23 - 15.”