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HR8166119th CongressWALLET

GUARD Act

Sponsored By: Representative Self, Keith [R-TX-3]

Introduced

Summary

Denies federal tax-exempt status to charities and social-welfare groups that accept gifts from citizens or nationals of certain foreign-adversary countries. The bill would target organizations described in 501(c)(3) and 501(c)(4) and link the loss of exemption to the year they receive a disqualifying contribution.

Show full summary
  • 501(c)(3) charities and 501(c)(4) social-welfare organizations would lose their tax-exempt status for any taxable year ending on or after they accept a contribution from a citizen or national of a listed foreign adversary. The denial applies only to contributions received after enactment and to years following receipt.
  • Any gift from an individual who is a citizen or national of a listed foreign adversary would trigger the penalty for the recipient organization. That creates a clear financial disincentive against accepting donations from those individuals.
  • The bill specifically lists the Peoples Republic of China (including Hong Kong and Macau), the Republic of Cuba, the Islamic Republic of Iran, the Democratic Peoples Republic of Korea, and the Russian Federation. It also allows the Secretary, in consultation with the Secretary of State, to add other countries based on national security.

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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 deny federal tax-exempt status to some nonprofits. It would apply to groups described in 501(c)(3) and 501(c)(4). The rule would kick in if the group receives any contribution or gift from an individual who is a citizen or national of a listed foreign adversary. Listed countries are the People's Republic of China (including Hong Kong and Macau), the Republic of Cuba, the Islamic Republic of Iran, the Democratic People's Republic of Korea, and the Russian Federation. The Treasury Secretary, with the Secretary of State, could add more countries. The denial would apply for any taxable year ending on or after the date the group receives the covered gift. It would apply only to gifts received after the bill's enactment. If enacted, donors could lose tax benefits and affected nonprofits could lose money and services.

Sponsors & CoSponsors

Sponsor

Self, Keith [R-TX-3]

TX • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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