The GUARD Act would deny tax-exempt status to certain nonprofit organizations that receive donations or gifts from citizens or nationals of designated foreign adversaries, including China, Cuba, Iran, North Korea, and Russia. The bill amends the tax code to strip tax-exempt status from affected organizations for any tax year in which they receive such contributions, effective immediately upon the law's enactment. The legislation specifically targets certain types of nonprofits—described in the tax code as charitable and social organizations—and gives the Secretary of the Treasury, in consultation with the State Department, authority to designate additional countries as foreign adversaries based on national security interests. While the bill contains no specific funding provisions or implementation timeline beyond the effective date, it would significantly impact organizations that currently rely on tax-exempt status, as receiving even a single foreign donation could jeopardize their entire tax-exempt designation.
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.