05/16/2024

Ways and Means Passes Bills Impacting Tax-exempt Groups

If enacted, organizations would have to provide information on grants made to foreign entities

The House Ways and Means Committee cleared several bills yesterday that could impact tax-exempt organizations.

Ways and Means Republicans advanced five bills that would require tax-exempt organizations to provide information on grants made to foreign entities.

Dating back to last year, Ways and Means Committee Chair Jason Smith (R-MO) has been concerned about whether the tax code is being abused to allow foreign entities to use nonprofit groups as a conduit to influence the U.S. political system.

"This committee has been concerned with the proliferation of tax-exempt organizations that receive generous benefits under Section 501 of the U.S. tax code engaging in activities that may not be in line with the spirit or the letter of the law," Smith said during yesterday's markup.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.