HR 2841119th CongressIn Committee

Putting Trust in Transparency Act

Introduced: Apr 10, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Putting Trust in Transparency Act would require certain nonprofit organizations (specifically 501(c) organizations that receive federal funding) to publicly disclose the names and zip codes of their donors, along with each donor’s total contributions, by making Schedule B of Form 990 public within 60 days after IRS processing. It would do so by adding a new requirement to the tax code and creating enforcement measures: if an eligible organization fails to file Schedule B, its tax-exempt status could be revoked, with a public list of revoked organizations maintained by the IRS. The bill also allows for retroactive reinstatement of tax-exempt status if an organization can show cause. It applies to tax years beginning after enactment. The legislation frames these transparency measures within findings and a “sense of Congress” that NGOs receiving federal funding act on behalf of the U.S. government and should be subject to oversight. In short, the bill would dramatically broaden the public availability of donor information for nonprofits receiving federal dollars and use that transparency to police compliance with Schedule B filing, with potential consequences for donors’ privacy and for nonprofit fundraising practices.

Key Points

1Public disclosure of donors: For 501(c) organizations that receive federal funding, Schedule B (donor information) from Form 990 would be published publicly, within 60 days of processing, and would include donor names, zip codes, and total contributions unredacted.
2New enforcement mechanism: The bill adds a new paragraph to Section 6033(j) allowing revocation of a nonprofit’s tax-exempt status if the organization fails to file Schedule B, with a published list of revoked organizations.
3Reinstatement provisions: If an organization’s exemption is revoked for not filing Schedule B, it may seek reinstatement, and retroactive reinstatement would be possible if cause is shown.
4Effective date: The amendments would apply to tax years beginning after enactment.
5Congressional findings and stance: The bill asserts that NGOs receiving federal funding operate on behalf of the U.S. government and should be subject to the same fiscal oversight, framing transparency as a public interest.

Impact Areas

Primary group/area affected- 501(c) organizations that receive any federal funding and their donors. These groups would face new reporting and public disclosure obligations and could lose tax-exempt status for noncompliance.Secondary group/area affected- Donors to those NGOs (both individuals and entities) whose names and contributions would become public in Schedule B disclosures, potentially altering fundraising dynamics and donor privacy considerations.- The general public and media, which would gain access to more detailed donor information and the specifics of funding relationships between NGOs and the federal government.Additional impacts- Administrative and compliance burden on affected nonprofits and on the IRS to process and publish Schedule B disclosures, as well as to maintain a list of revoked exempt organizations.- Privacy and safety concerns for donors due to public disclosure of personal information (even though zip codes are included, some donors may view this as sensitive).- Potential chilling effect on giving to NGOs that receive federal funding, as donors may fear public exposure of their contributions.- Broader shift in nonprofit oversight and fundraising strategy, as organizations may alter donor engagement and reporting practices to avoid revocation risks.

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