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Liability of Non-Profits for Sponsored Activities (SPONSOR Act)

This bill makes tax-exempt organizations legally responsible for the criminal and civil actions of the projects they fund through fiscal sponsorship. It aims to ensure that non-profit funds are not used for terrorism, illegal intimidation, or blocking commerce.
Key points
Charities will face criminal and civil liability for illegal acts committed by groups they fiscally sponsor.
Covered acts include aiding terrorism, interfering with constitutional rights, and blocking interstate trade.
Organizations are presumed responsible for ensuring their funds are used legally by third parties.
Non-profits can defend themselves by proving they performed proper oversight and due diligence.
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Status:
Introduced
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Additional Information
Print number: 119_HR_7799
Sponsor: Rep. Moran, Nathaniel [R-TX-1]
Process start date: 2026-03-04