Stopping Foreign Influence in Elections Act of 2026

Nonprofits face new contribution penalties

If enacted, this bill would create new penalties for many 501(c) organizations that give money to political committees or certain 501(c)(4) groups. A contribution would be "disqualified" if the nonprofit received any contribution or gift from a foreign national during the 2-year testing period before the contribution; the testing period would not include any time before enactment. Groups could rely on a donor's statement about nationality unless the group knows the statement is false. Covered nonprofits (must file an annual return and had at least $200,000 in receipts or $500,000 in assets in the prior year) would face a penalty equal to twice the disqualified contribution and extra excise taxes: 100% of the contribution for the first disqualified gift, 200% for the second, and 200% plus loss of tax-exempt status for two years for any later disqualified contribution. Counts would reset if the group has no disqualified contribution for any two-year period. These rules would apply to contributions made more than one year after enactment.