Putting Trust in Transparency Act

This proposal would require the IRS to publicly post donor information for tax‑exempt nonprofits that receive any federal funding in a given year. The IRS would publish each group’s Schedule B from Form 990 within 60 days of processing, showing each donor’s name, zip code, and total amount given. The goal is to increase transparency about who funds organizations that use taxpayer dollars.

If a covered nonprofit fails to file its donor schedule, the IRS must give notice, and the group would lose its tax‑exempt status if it doesn’t file within 60 days. The IRS would keep a public list of organizations that are revoked. Groups can apply for reinstatement, and retroactive reinstatement is allowed if they show cause.

• Who is affected: Tax‑exempt 501(c) organizations that receive any federal funding during the year.
• What changes: The IRS must publish donors’ names, zip codes, and total contributions; failure to file leads to loss of tax‑exempt status after notice; revoked organizations are listed publicly; reinstatement (including retroactive, with cause) is possible.
• When: Applies to returns for tax years beginning after the date the bill becomes law.

Congress also states its view that any nonprofit receiving federal funds is acting on behalf of the government and should face similar fiscal oversight as federal agencies.