H.R.2896 - Safeguarding Charity Act (119th Congress)
Summary
H.R.2896, the "Safeguarding Charity Act," aims to amend Title 1 of the United States Code to clarify that certain tax exemptions are not treated as Federal financial assistance. This bill specifically targets organizations described in sections 501(c), 501(d), or 401(a) of the Internal Revenue Code of 1986. The bill seeks to ensure that tax exemptions for these organizations are not considered federal financial assistance unless explicitly stated otherwise in federal law, rule, or regulation.
Expected Effects
The primary effect of this bill is to provide clarity and consistency in how tax exemptions for charitable and other organizations are treated under federal law. By explicitly stating that these exemptions do not constitute federal financial assistance, the bill aims to reduce potential legal ambiguities and administrative burdens. This could impact the eligibility of these organizations for other federal programs or grants, depending on how 'federal financial assistance' is defined in those contexts.
Potential Benefits
- Provides clarity for non-profit organizations regarding their tax-exempt status.
- Reduces potential for misinterpretation of 'Federal financial assistance' in relation to tax exemptions.
- Simplifies compliance for organizations described in sections 501(c), 501(d), or 401(a) of the Internal Revenue Code.
- May encourage charitable giving by reinforcing the benefits of tax-exempt status.
- Could lead to more consistent application of federal laws and regulations affecting these organizations.
Most Benefited Areas:
Potential Disadvantages
- May create loopholes or unintended consequences if not carefully implemented.
- Could potentially limit the government's ability to regulate or oversee certain tax-exempt organizations.
- Might be perceived as favoring certain types of organizations over others.
- The impact on specific federal programs or grants is uncertain and could require further clarification.
- Could be interpreted as a subtle shift in the relationship between the government and tax-exempt entities.
Constitutional Alignment
The bill appears to align with the general principles of the US Constitution, particularly Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises. By clarifying the treatment of tax exemptions, the bill exercises this power in a specific way. Additionally, the bill does not appear to infringe upon any specific constitutional rights or protections.
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).