SPONSOR Act

The SPONSOR Act would amend the Internal Revenue Code to hold 501(c)(3) organizations criminally and civilly liable for certain illegal activities carried out by projects or groups they fiscally sponsor, if those organizations accept tax-deductible donations for such sponsorship. It defines "covered activity" to include aiding international terrorism, using force or threats to interfere with constitutional rights, or obstructing interstate commerce, and establishes a presumption that the sponsoring organization is responsible for ensuring its funds are used lawfully. The bill allows defenses based on due diligence and reasonable oversight but otherwise imposes liability on tax-exempt fiscal sponsors for the actions of their sponsored entities.

No official summary is available here. This one was written by AI from the bill’s text.