Rep. Lloyd Smucker
Legislation sponsored on May 8 by U.S. Rep. Lloyd Smucker (R-PA) would require any tax-exempt organization to include in their annual filing certain information regarding grants they provide to foreign entities.
“This common-sense measure would provide greater transparency into the work of nonprofits by requiring the disclosure of information already required of grants made to domestic organizations,” Rep. Smucker said on May 9.
Specifically, the Foreign Grant Reporting Act, H.R. 8290, aims to address a loophole in current law that requires specific U.S.-based nonprofits to disclose information regarding grants they make to other domestic organizations, but not grants made to foreign entities, according to the congressman.
Information required to be reported under H.R. 8290 would include: the name and address of the foreign entity, the aggregate amount of such grants, and whether the foreign entity is a charity, according to a bill summary provided by Rep. Smucker’s staff.
“American tax law should not shield bad actor nonprofit organizations who seek to fund terrorism abroad and sow discord at home,” said Rep. Smucker. “We should ensure that our tax code does not provide cover to tax-exempt organizations who funnel money abroad to organizations who wish to harm our national interests.”
H.R. 8290 has been referred to the U.S. House Ways and Means Committee for consideration.