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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.
Summary
The bill amends the Internal Revenue Code to establish liability for 501(c)(3) tax-exempt organizations that serve as fiscal sponsors for other projects or organizations. Under the bill, a fiscal sponsoring organization would be liable for criminal and civil consequences arising from the sponsored activities if donors receive or are represented to receive charitable tax deductions. Covered activities include aiding and abetting international terrorism, using force or threats to interfere with constitutional rights, and blocking lawful commerce. The bill presumes fiscal sponsoring organizations are responsible for ensuring their sponsored funds comply with applicable laws and regulations, though organizations can defend against liability by demonstrating due diligence and reasonable oversight.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
Money behind the sponsor
Top reported contributors to Nathaniel Moran’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.
- NULL $50,200
- DRAKE $13,200
- LEDWELL & SONS ENTERPRISES, INC. $9,900
- PELTIER AUTO GROUP $9,500
- CITIZENS 1ST BANK $7,100
Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for Nathaniel Moran → · Outside spending →
Actions (2)
- Mar 4, 2026 Referred to the House Committee on Ways and Means. · house
- Mar 4, 2026 Introduced in House
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
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 terrorism committed, planned, or authorized by an organization that had been designated as a foreign terrorist organization under section 219 of the Immigration and Nationality Act (8 U.S.C. 1189), as of the date on which such act of international terrorism was committed, planned, or authorized, by knowingly providing substantial assistance, or conspiring with the person who committed such an act of international terrorism,
“(B) by force or a specified and credible threat of force, or by physical obstruction, intentionally injuring, intimidating or interfering with or attempting to injure, intimidate or interfere with any person lawfully exercising or seeking to exercise a constitutional right, or
“(C) by using force or a specified credible threat of force or by physically blocking the movement of any article or commodity in commerce to intentionally prevent the lawful movement of interstate and intrastate commerce. For purposes of the preceding sentence, the term ‘intimidate’ means to place an individual in reasonable apprehension of bodily harm to such individual or to another.
“(3) Fiscal sponsorship.—For purposes of this subsection, the term ‘fiscal sponsorship means’ a relationship in which an organization described in subsection (c)(3)—
“(A) agrees to receive and administer funds on behalf of a project or organization that is not exempt from tax under subsection (a), and
“(B) retains discretion and control over such funds to ensure they are used for the purposes for which such organization was organized and operated.
“(4) Presumption of responsibility.—An organization to which paragraph (1) applies is presumed to be responsible for ensuring that the manner in which its funds are used under any fiscal sponsorship complies with applicable laws, regulations, and tax obligations.
“(5) Defenses.—The liability established by this subsection does not bar the organization described in subsection (c)(3) from defenses based on exercise of due diligence and reasonable oversight.”. <all>
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