Safeguarding America’s Nonprofits Act

Key Points

• This bill clarifies that when a nonprofit is exempt from federal income taxes, it is not considered to be receiving federal financial assistance. This applies to a wide range of groups like charities, social welfare organizations, and certain pension plans.
• The change matters because organizations that receive federal financial assistance are often required to follow extra government rules and reporting standards. This bill protects nonprofits from being forced into those regulations just because they do not pay income tax.
• This rule would apply to all federal laws and regulations unless a specific law states otherwise. It also includes a note saying that this has always been the intended rule, even for the years before this bill was introduced.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.