Sponsors (5)
The bill increases transparency and government oversight of foreign funding to nonprofits—helping detect malign influence and improving enforcement—while imposing compliance costs, reducing some legitimate foreign donations and collaborations, and raising privacy and politicization risks for organizations and donors.
Tax-exempt and nonprofit organizations would be required to disclose foreign government and party funding above $10,000 into a centralized public database, giving the public, journalists, and policymakers clearer information about foreign influence.
State and local governments and the public would be better able to detect and counter malign foreign influence or espionage by exposing channels used for foreign funding.
Centralized reporting would improve IRS monitoring and enforcement of tax rules for tax-exempt entities that receive foreign funding, strengthening oversight and compliance.
Nonprofits (including universities and cultural organizations) would face higher administrative and compliance costs to collect and report foreign gifts, reducing resources available for programs and services.
Donors (including legitimate foreign cultural exchange supporters) and institutions may be deterred from giving or partnering internationally, reducing funding and complicating research, academic exchanges, and cultural programs.
Publishing donor names and amounts in a public database could expose donors to harassment or political pressure and raises privacy concerns for individuals and organizations.
Based on analysis of 3 sections of legislative text.
Requires many tax-exempt nonprofits to report foreign contributions over $10,000 and directs the IRS to publish a searchable database identifying China/CCP-linked amounts.
Introduced June 12, 2025 by Lance Gooden · Last progress June 12, 2025
Requires many tax-exempt nonprofit organizations (including think tanks and cultural groups) to report annual foreign contributions and gifts over $10,000 to the IRS and directs the IRS to publish that information in a searchable public database. The database must specifically identify amounts received from the People’s Republic of China, the Chinese Communist Party, and entities directed, controlled, financed, or subsidized by them. The change applies to returns for taxable years beginning after enactment and creates a new transparency requirement aimed at revealing foreign government, foreign political party, and certain foreign-controlled funding of U.S. nonprofits.