# 119-s-5083: Fiscal Sponsorship Transparency Act of 2026

119-s-5083, Fiscal Sponsorship Transparency Act of 2026, is a 119th Congress bill sponsored by Sen. Cotton, Tom [R-AR] (R-AR); status introduced; PRIA reads it as touching household money (as of 2026-08-13).

- Canonical: https://policyrisk.com/legislation/119-s-5083
- As of: 2026-08-13
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-5083
- Congress: 119
- Title: Fiscal Sponsorship Transparency Act of 2026
- Status: introduced
- Introduced: 2026-07-22
- Sponsor: Sen. Cotton, Tom [R-AR] (R-AR)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-08-13

## Summary

**Transparency and accountability for fiscal sponsorships.** This bill would require tax-exempt organizations to disclose detailed information about each fiscal sponsorship and would create taxes and penalties for improper conduit transfers. - Tax-exempt organizations would need to report each fiscal sponsorship under Section 6033(b), listing non-individual parties, amounts made available or transferred, a description of related activities, the principal officer managing the arrangement, and start and end dates. The "applicable organization" definition would exclude private foundations and donor-advised funds and the rules would apply to taxable years beginning after Dec. 31, 2027. - Organizations and organization managers would face new taxes on improper conduit transfers: an initial tax of 20 percent on organizations and 5 percent on managers, rising to 100 percent and 50 percent respectively if transfers are not corrected. These taxes carry caps of $10,000 for the organization tax and $20,000 for the manager tax. - Donors would lose the charitable deduction for contributions made under an improper conduit arrangement. The bill would also require the Secretary to issue regulations clarifying what counts as discretion and control in fiscal sponsorships.

## Provisions PRIA read

- New penalties for improper conduit transfers: cost, high. If enacted, the bill would create new taxes on transfers made under an "improper conduit arrangement." An organization would owe an initial tax equal to 20% of any knowingly transferred amount. An organization manager who agreed to the transfer would owe an initial tax equal to 5%, unless the agree…
- New definitions for fiscal sponsors: cost, low. If enacted, the bill would add new legal definitions for fiscal sponsorship and improper conduit arrangements. It would say when an organization receives or solicits money for another person and must keep "discretion and control." It would treat entities that were 501(c)(3) in the prior five years…
- New reporting rules for fiscal sponsors: cost, low. If enacted, applicable tax-exempt organizations that act as fiscal sponsors would have to report each fiscal sponsorship arrangement on their annual return. For each arrangement they would list non-individual parties, the total dollars made available or transferred that year, a short description of…
- Treasury rules on fiscal sponsor control: mixed, low. If enacted, the bill would require the Treasury Secretary to write rules that explain which fiscal sponsorship arrangements must be reported. The rules would also define what "discretion and control" means for both reporting and the new tax rules on conduit transfers. The regulations would take eff…

## Related bills

- 119-s-2342: Intelligence Authorization Act for Fiscal Year 2026
- 119-s-4615: Intelligence Authorization Act for Fiscal Year 2027
- 119-s-2142: GOLDEN DOME Act of 2025
- 119-s-1748: Kids Online Safety Act
- 119-s-2010: TERMS Act
- 119-s-292: Educational Choice for Children Act of 2025

## Sources
- [119-s-5083 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/5083)

## Related
- [119-s-2342: Intelligence Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-2342)
- [119-s-4615: Intelligence Authorization Act for Fiscal Year 2027](https://policyrisk.com/legislation/119-s-4615)
- [119-s-2142: GOLDEN DOME Act of 2025](https://policyrisk.com/legislation/119-s-2142)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-2010: TERMS Act](https://policyrisk.com/legislation/119-s-2010)
- [119-s-292: Educational Choice for Children Act of 2025](https://policyrisk.com/legislation/119-s-292)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-5083 (as of 2026-08-13).