Fiscal Sponsorship Transparency Act of 2026

This bill sets new rules for arrangements where a tax-exempt charity agrees to receive and manage donations on behalf of another person or group that is not tax-exempt. Under the bill, charities involved in these kinds of arrangements would have to report details to the IRS, including who is involved, how much money was transferred, and who at the charity is managing the arrangement. If a charity passes money through one of these arrangements without actually keeping control over how the funds are used, the bill would impose special taxes on the charity and its managers and would also take away the tax deduction that donors normally get for charitable contributions made under that arrangement.

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