To amend the Internal Revenue Code of 1986 to provide that 501(c)(3) organizations are liable for the use of funding provided as a fiscal sponsor.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7799 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7799 To amend the Internal Revenue Code of 1986 to provide that 501(c)(3) organizations are liable for the use of funding provided as a fiscal sponsor. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES March 4, 2026 Mr. Moran introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to provide that 501(c)(3) organizations are liable for the use of funding provided as a fiscal sponsor. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Stop Proxy Organizations Nurturing Subversive Operations and Riots Act'' or the ``SPONSOR Act''. SEC. 2. LIABILITY OF TAX-EXEMPT FISCAL SPONSORS FOR SPONSORED ACTIVITIES. Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: ``(s) Liability of Fiscal Sponsors for Sponsored Activities.-- ``(1) In general.--If-- ``(A) an organization described in subsection (c)(3) expends funds for a fiscal sponsorship, and ``(B) a deduction under section 170 is allowed to any donor, or such organization represents to any donor that the donor is entitled to a deduction under section 170, with respect to a contribution to the organization for purposes of such fiscal sponsorship, then the organization shall bear any criminal liability related to or arising from such fiscal sponsorship, and any civil liability concerning a covered activity related to or arising from such fiscal sponsorship. ``(2) Covered activity.--For purposes of this subsection, the term `covered activity' means-- ``(A) aiding and abetting an act of international te