Bill > S2849

This bill amends the Internal Revenue Code to prohibit certain foreign nationals from serving on the boards of tax-exempt organizations. Specifically, the bill adds a new provision that would deny tax-exempt status to any nonprofit organization (including most 501(c)(3), 501(c)(4), and 501(c)(6) organizations, but excluding churches) if any board member is a citizen or national of a "covered nation" as defined in the tax code. The term "covered nation" is not explicitly defined in the provided text, but would be further defined in another section of the tax code referenced as section 7701(a)(51)(I)(ii). The prohibition would apply to taxable years beginning after the date of the bill's enactment, effectively requiring tax-exempt organizations to review and potentially remove board members who are nationals of the specified countries to maintain their tax-exempt status. This bill appears to be aimed at restricting foreign influence in nonprofit governance by creating a potential financial disincentive for organizations that include certain foreign nationals on their boards.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2849/all-info