This bill creates tax penalties for tax-exempt organizations that receive donations from foreign nationals and then contribute money to political committees. Organizations with annual gross receipts of at least $200,000 or assets of $500,000 or more would face a penalty equal to twice the amount of any political contribution made if they have received foreign donations within the previous eight years. The penalty applies regardless of whether the foreign contributions and political donations are connected. Additionally, organizations that make more than two such political contributions would lose their tax-exempt status entirely. The penalties and revocation rules take effect on January 1, 2026, and apply going forward without retroactive application to past contributions.
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