HR 9772: Foreign Funding Transparency Act

HR 9772 in plain English: This bill would require certain tax-exempt organizations to disclose foreign funding sources. The reporting requirements apply to organizations whose gross receipts are at least $200,000 or whose assets are at least $500,000.

Stated purpose

To require certain tax-exempt organizations to report on their annual tax filings how much money they receive from foreign nationals, including a separate breakdown for contributions from countries of concern.

Key points

• Requires tax-exempt organizations to report foreign funding sources
• Applies to organizations with gross receipts of $200,000 or more
• Also covers organizations with assets of $500,000 or more
• Includes a provision allowing organizations to rely on donor representations about foreign status

Arguments supporters make

• Americans deserve to know when foreign governments or their citizens are financially influencing U.S. nonprofits, which can shape public policy and opinion.
• Requiring disclosure on an existing tax form is a straightforward, low-burden way to add transparency without banning any contributions.
• Singling out contributions from countries of concern helps identify potential national security risks without treating all foreign donors the same.

Arguments opponents make

• This reporting requirement could chill legitimate international charitable giving and burden nonprofits — especially smaller ones near the thresholds — with costly compliance work.
• Nonprofits are allowed to rely on donors' self-reported nationality, which critics say creates an easy loophole that makes the disclosure requirement largely unenforceable.
• Civil liberties advocates may argue the law could be used to stigmatize or politically target certain types of nonprofits that happen to have international donors or missions.

Tradeoffs

Greater public transparency about foreign money in U.S. civil society comes at the cost of added reporting burdens on nonprofits and potential discouragement of lawful cross-border charitable activity.

Current status in Congress: In committee.

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