Sponsors (11)
The bill increases transparency and federal oversight of nonprofits receiving federal funds by requiring rapid donor disclosure and stronger enforcement, improving accountability but at the cost of donor privacy, higher compliance burdens for charities, and increased administrative and data‑privacy risks.
Taxpayers and the public gain timely access to donor information (names, ZIP codes, amounts) for organizations receiving federal funds, increasing transparency about who finances federally funded NGOs.
Congress, the IRS, and federal grantmaking agencies get clearer authority and shared Form 990 Schedule B data to oversee federally funded nonprofits, improving coordination and the ability to detect misuse of federal dollars.
An enforcement mechanism (notice plus automatic revocation after 60 days) encourages compliance with filing requirements and can deter abuse of tax‑exempt status.
Donors to federally funded 501(c) organizations (including small or previously anonymous donors) will have names and ZIP codes publicly exposed, risking privacy loss, harassment, and chilling charitable giving and political association.
Nonprofits face increased compliance costs and administrative burdens from expanded reporting and rapid processing requirements, which can reduce funds available for program services and staff.
Organizations that miss the filing deadline risk sudden automatic revocation of tax‑exempt status after 60 days, creating abrupt financial and operational disruption for charities and the people who rely on their services.
Based on analysis of 3 sections of legislative text.
Requires public posting of Schedule B donor lists for federally funded 501(c) organizations and authorizes IRS revocation for failures to file.
Official title: To amend the Internal Revenue Code of 1986 to require the public disclosure of the names and partial addresses of contributors to 501(c) organizations that receive Federal funding.
Introduced April 10, 2025 by Paul Gosar · Last progress April 10, 2025
Requires public disclosure of donor lists (Schedule B) from tax-exempt organizations that receive any federal funding and creates a new IRS enforcement mechanism to revoke tax-exempt status for organizations that fail to file those donor lists. Applies to 501(c) organizations receiving federal funds and takes effect for taxable years beginning after enactment.