H.R.2841 - Putting Trust in Transparency Act (119th Congress)
Summary
H.R.2841, the "Putting Trust in Transparency Act," aims to amend the Internal Revenue Code of 1986 to mandate public disclosure of contributors to 501(c) organizations receiving federal funding. This bill requires the IRS to make public the Schedule B of Form 990 filed by these organizations, including the names, zip codes, and total contributions of donors. Failure to comply would result in the revocation of the organization's tax-exempt status.
Expected Effects
The likely effect of this bill would be increased transparency regarding the funding of NGOs that receive federal dollars. This could lead to greater public awareness of who is influencing these organizations. It may also deter some donors who prefer to remain anonymous, potentially impacting the financial resources available to these NGOs.
Potential Benefits
- Increased transparency in the funding of NGOs.
- Greater accountability for organizations using taxpayer dollars.
- Empowered lawmakers to make responsible decisions with Americans' tax dollars.
- Potential for reduced influence of special interests.
- Enhanced public awareness of the financial backers of NGOs.
Most Benefited Areas:
Potential Disadvantages
- Potential chilling effect on donations to 501(c) organizations.
- Increased administrative burden on the IRS and NGOs.
- Possible privacy concerns for donors.
- Risk of harassment or intimidation of donors due to public disclosure.
- Potential for politically motivated targeting of certain organizations.
Most Disadvantaged Areas:
Constitutional Alignment
The bill references Article I, Section 8 of the U.S. Constitution, which empowers Congress to make rules for the government and regulate the use of taxpayer dollars. The requirement for disclosure could be argued as a valid exercise of this power to ensure accountability in the use of public funds. However, the bill's impact on freedom of association and privacy could raise First Amendment concerns.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).