Fiscal Sponsorship Transparency Act of 2026
A bill to amend the Internal Revenue Code of 1986 to require reporting by certain charitable organizations relating to fiscal sponsorship arrangements, and for other purposes.
This bill, SB5083, aims to make changes to the Internal Revenue Code. Specifically, it requires certain charitable organizations to report details about their fiscal sponsorship arrangements. A fiscal sponsorship arrangement occurs when a recognized charitable organization manages funds or resources on behalf of another entity that does not have its own tax-exempt status. This bill is intended to increase transparency and accountability within these arrangements.
The bill would affect charitable organizations that engage in fiscal sponsorship. These organizations would need to provide more detailed information about their sponsorship activities, which could help ensure that funds are being used appropriately and in compliance with tax laws. It is important to note that the bill does not directly impact individual donors or the general public but rather seeks to regulate the practices of certain charities.
SB5083 was introduced on July 22, 2026, and was immediately referred to the Senate Committee on Finance for further review. As of the latest update, the bill is in its initial stages of consideration. No further actions have been taken yet, and the Committee on Finance will determine the next steps in the legislative process.
