S. 5083 — Fiscal Sponsorship Transparency Act of 2026

This section requires applicable tax-exempt organizations (other than private foundations and donor-advised funds) to report on annual returns under section 6033(b) each fiscal sponsorship arrangement in effect during the taxable year, including the names of non-individual parties, aggregate amounts transferred or made available, descriptions of related activities, the designated principal officer, and the arrangement’s start and end dates. It defines fiscal sponsorship arrangements as agreements under which the organization receives and administers funds for another person or a specifically identified project while retaining discretion and control. It disallows charitable contribution deductions for gifts made under improper conduit arrangements. It imposes excise taxes on such arrangements equal to 20 percent of the transferred amount on the organization and 5 percent on managers (capped at $10,000), with additional taxes of 100 percent and 50 percent (capped at $20,000) if the arrangement is not corrected.