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119-s-2849119th CongressWALLET

Nonprofit Governance Integrity Act

Sponsored By: Senator Cotton, Tom [R-AR]

Introduced

Summary

Bars tax-exempt status for certain nonprofits if a board member is a citizen or national of a covered nation. This bill would deny tax-exempt treatment to specific nonprofit types when any member of their board or equivalent governing body is a citizen or national of a covered nation as defined in the tax code.

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  • 501(c)(3) charities (excluding churches): These groups would not be treated as tax-exempt if any board member is a citizen or national of a covered nation.
  • 501(c)(4) advocacy organizations: The same rule would make these social welfare groups ineligible for tax-exempt status.
  • 501(c)(6) trade and professional associations: These organizations would also lose tax-exempt treatment under the rule.
  • Board members: A single board member who is a citizen or national of a covered nation would trigger the loss of tax-exempt status for the entire organization.
  • Timing: The rule would apply to taxable years beginning after the date of enactment.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Nonprofits could lose tax-exempt status

This bill would stop some nonprofits from being tax-exempt if any board member is a citizen or national of a "covered nation." It would apply to most 501(c)(3) charities (not churches), 501(c)(4) groups, and 501(c)(6) organizations. If enacted, affected organizations would be treated as taxable for taxable years beginning after the date of enactment. That could make gifts non-deductible and reduce donations or services households rely on.

Sponsors & CoSponsors

Sponsor

Cotton, Tom [R-AR]

AR • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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