Bill > HR2841

This bill aims to increase transparency for nonprofit organizations (501(c) organizations) that receive federal funding by requiring public disclosure of donor information. Specifically, the bill mandates that any nonprofit exempt organization receiving federal funds must publicly disclose its Schedule B of Form 990 (a tax form detailing organizational finances) within 60 days of processing, including the name, zip code, and total contribution of each donor. Organizations that fail to file this disclosure will receive a notification from the Internal Revenue Service (IRS), and if they do not comply within 60 days, they will automatically lose their tax-exempt status. The bill's motivation stems from a belief that nonprofits receiving federal money should be subject to rigorous oversight, with Congress arguing that such organizations are effectively acting on behalf of the United States government. The legislation is grounded in the constitutional power of Congress to regulate the use of taxpayer dollars and aims to provide greater transparency to the American public about the funding sources of nonprofits that leverage federal money. The new requirements would apply to tax returns filed after the date of the bill's enactment, and organizations can potentially be reinstated if they can show good cause for their initial non-compliance.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2841/all-info