April 10, 2025
Mr. Gosar (for himself, Mr. Biggs of Arizona, Mr. Brecheen, Mr. Burchett, Mr. Crane, Mr. Nehls, Mr. Norman, and Mr. Weber of Texas) introduced the following bill; which was referred to the Committee on Ways and Means
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.
Section 1. Short title
This Act may be cited as the Putting Trust in Transparency Act
.
Sec. 2. Findings and Sense of Congress
(a) Findings
Congress finds the following:
(1)
In the United States, nongovernmental organizations, or NGOs, often assist the Federal government with distribution of resources to the American People and abroad.
(2)
The executive Memo entitled Memorandum for the Heads of Executive Departments and Agencies
, published February 6, 2025, requires executive departments and agencies to review all Federal funding to nongovernmental organizations; however, this review does not apply to these organizations’ non-Federal sources of funding.
(3)
The non-Federal sources of NGOs’ extravagant revenue are already reported to the Internal Revenue Service through the Form 990 Schedule B, but these Forms are not shared government wide.
(4)
Article I, Section 8 of the U.S. Constitution empowers Congress to make rules for the government and regulate the use of taxpayer dollars.
(5)
NGOs that operate independently of the Federal government and any Federal grants or contributions of any amount are not subject to rigorous Congressional oversight and face limited restrictions on expression and association.
(6)
To empower lawmakers to make responsible decisions with Americans’ tax dollars and provide transparency to the American People, all Americans should have access to the megadonors of NGOs that leverage Federal dollars for their own agenda.
(b) Sense of Congress
It is the sense of Congress that any nongovernmental organization that receives Federal funding of any kind is acting on behalf of the United States government and subject to the same fiscal oversight requirements as executive agencies.
Sec. 3. Annual disclosure of contributors to exempt organizations
(a) Amendments to Internal Revenue Code of 1986
(1) Public disclosure of names and partial addresses of donors
Section 6104 of the Internal Revenue Code of 1986 is amended—
(A)
by inserting (except as provided in subsection (e))
after name or address
each place it appears, and
(B)
by adding at the end the following new subsection:
(e) Public disclosure of Form 990
In the case of an organization described in subsection (c) of section 501 and exempt from taxation under section 501(a) which receives Federal funding during the taxable year, the Secretary shall make public any schedule B of Form 990 (or successor Form) filed by such organization—
(1)
within 60 days of processing such Form, and
(2)
with the name, zip code, and total contribution of any contributor unredacted.
(2) Loss of exempt status for failure to file schedule B of Form 990
Section 6033(j) of such Code is amended by adding at the end the following new paragraph:
(4) Revocation of exempt status for failure to file schedule B of Form 990
(A) Notice
If an organization described in subsection (e) fails to file the Form required under such subsection by the due date for the return of tax for such organization for the taxable year, the Secretary shall notify the organization—
(i)
that the Internal Revenue Service has no record of such a return or notice from such organization, and
(ii)
about the revocation that will occur under subparagraph (B) if the organization fails to file such a return or notice within 60 days of such notification.
(B) Revocation
If an organization described in subsection (e) fails to file schedule B of Form 990 of the Internal Revenue Service (or any successor schedule or Form) with the return or notice of such organization for the taxable year, such organization's status as an organization exempt from tax under section 501(a) shall be considered revoked on and after the date set by the Secretary under subparagraph (A)(ii). The Secretary shall publish and maintain a list of any organization the status of which is so revoked.
(b) Application necessary for reinstatement; Retroactive reinstatement allowed if cause shown
Section 6033(j) of such Code is amended by striking paragraph (1)
each place it appears and inserting paragraph (1) or (4)
.
(c) Effective date
The amendments made by this section shall apply to returns filed for taxable years beginning after the date of the enactment of this Act.