The SPONSOR Act would hold tax-exempt nonprofit organizations (501(c)(3) groups) criminally and civilly liable for activities funded through fiscal sponsorships if those activities involve terrorism support, force-based interference with constitutional rights, or disruption of interstate commerce. The bill applies when a nonprofit receives tax-deductible donations specifically designated for fiscal sponsorship purposes—meaning the nonprofit acts as a financial intermediary for projects that aren't independently tax-exempt. Under the legislation, nonprofits would be presumed responsible for ensuring their sponsored funds comply with all applicable laws, though they could defend themselves by demonstrating due diligence and reasonable oversight. The bill contains no specific funding allocations or implementation timelines, as it primarily creates new legal liability rather than establishing a funded program.
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