Fiscal Sponsorship Transparency Act of 2026
To amend the Internal Revenue Code of 1986 to require reporting by certain charitable organizations relating to fiscal sponsorship arrangements, and for other purposes.
HB9721, the Fiscal Sponsorship Transparency Act of 2026, aims to enhance the transparency of charitable organizations that use fiscal sponsorship. This means that certain non-profits, which rely on another organization to handle their finances, would need to provide more detailed reports about their fiscal sponsorship arrangements. This could help ensure that charitable funds are used appropriately and transparently. The bill was introduced on July 16, 2026, and was referred to the House Committee on Ways and Means for further review.
The bill would primarily affect charitable organizations that use fiscal sponsorship, as well as donors and the public who want to ensure that their contributions are being used properly. By requiring more detailed reporting, the bill aims to increase accountability and trust in the charitable sector.
As of July 22, 2026, the bill has passed a committee consideration and markup session and was ordered to be reported in the nature of a substitute. The next steps include further review and potential amendments before it can be voted on by the full House. This bill is currently in the early stages of the legislative process and is being actively considered by House members.
