Think Tank and Nonprofit Foreign Influence Disclosure Act
This bill, titled the Think Tank and Nonprofit Foreign Influence Disclosure Act, would expand the annual donor reporting requirements for certain tax-exempt organizations and create a new public database to disclose foreign funding. Specifically, it requires charitable organizations (including think tanks and other nonprofit groups) to report to the Internal Revenue Service (IRS) all aggregate contributions from foreign governments, foreign political parties, and entities tied to a foreign country that total more than $10,000 in a year. The sources are defined to include governments (as defined in the Foreign Agents Registration Act), foreign political parties, and any entity directed, controlled, financed, or subsidized by such governments or parties (or their agents). The bill then requires the IRS to publish this information in a searchable public database, including the organization’s name, the donor, and the aggregate amount from these foreign sources, with a focus on contributions from the People's Republic of China, the Chinese Communist Party, or entities connected to them. The new reporting and public disclosure would apply to tax years beginning after enactment. The bill is framed around national security and transparency concerns about foreign influence—especially from China—on U.S. think tanks, cultural organizations, and other nonprofits. It mirrors a public disclosure mentality already present for some higher education foreign gifts but would extend a similar level of transparency to think tanks and related nonprofit entities.
Key Points
- 1New annual disclosure requirement: Amendments to 6033(b) would add a new category (16) requiring reporting of, and aggregate gifts from, foreign governments, foreign political parties, and entities directed or subsidized by those foreign sources, when totals exceed $10,000 in a year.
- 2Public, searchable disclosure: Amendments to 6104 would obligate the IRS to publish in a public database the donor information, the organization, and the aggregate amounts from specified foreign sources.
- 3Source scope: Publicly disclosed sources would specifically include the People's Republic of China, the Chinese Communist Party, and any entity that is directed, controlled, financed, or subsidized by those sources (or their agents).
- 4Applies to tax years after enactment: The changes take effect for returns filed for taxable years beginning after the date of enactment.
- 5Policy rationale: The Findings emphasize national security concerns about foreign influence operations, particularly from China, and argue for greater transparency to counter opaque funding flows to think tanks and related nonprofits.