Bill > SB4

This bill, the "Keeping Charities Nonpartisan Act of 2026," prohibits certain charitable organizations, specifically those recognized by the IRS as eligible to receive tax-deductible donations (under § 170 of the Internal Revenue Code) and that solicit public contributions, from engaging in political campaign activities, such as endorsing or opposing candidates, mirroring the federal "Johnson Amendment" as it was interpreted on January 19, 2025. If a charitable organization is found to have violated this prohibition, the Secretary of State and the Attorney General, acting jointly, can order a two-year revocation of its tax-exempt status, which would then require the Comptroller and the Director of the State Department of Assessments and Taxation to revoke various state tax exemptions, including income, sales and use, and property taxes. The bill also allows for civil penalties, starting with a warning for a first offense and up to $1,000 for subsequent violations, and requires the Secretary of State and Attorney General to attempt mediation before imposing penalties or revoking status. Importantly, this state-level enforcement is contingent on federal law or IRS interpretation continuing to prohibit such political activity by charities; if federal law changes to allow it, this state law would not take effect.