The SPONSOR Act would amend tax law to hold nonprofit organizations (501(c)(3) groups) legally responsible for how sponsored projects use their funds. Under the bill, if a nonprofit receives tax-deductible donations to serve as a "fiscal sponsor" for another organization or project, the nonprofit would bear both criminal and civil liability for certain activities funded through that sponsorship, including aiding terrorism, using force to interfere with constitutional rights, or physically blocking interstate commerce. The legislation presumes nonprofits are responsible for ensuring their sponsored funds comply with all applicable laws and regulations, though it allows organizations to defend themselves by demonstrating they exercised due diligence and reasonable oversight. The bill affects any 501(c)(3) organization that accepts donations for fiscal sponsorship arrangements and does not specify a funding amount or implementation timeline, instead amending existing Internal Revenue Code provisions.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.