H.R. 3966: Think Tank and Nonprofit Foreign Influence Disclosure Act

This bill, titled the Think Tank and Nonprofit Foreign Influence Disclosure Act, aims to increase transparency regarding foreign influence on nonprofit organizations, particularly think tanks and cultural institutions in the United States. The main provisions of the bill can be broken down as follows:

Purpose

The purpose of the bill is to amend the Internal Revenue Code so that certain tax-exempt organizations, especially those receiving funds from foreign governments and political parties, must publicly report these contributions. This initiative is a response to concerns that foreign entities, particularly the Chinese government, may use donations to exert influence over U.S. policy and public opinion.

Key Findings

• The bill highlights that foreign governments and parties can attempt to influence U.S. policy through donations to nonprofits.
• Current laws require universities to disclose foreign donations, but similar requirements do not exist for other nonprofit entities like think tanks.
• There are national security concerns linked to undisclosed foreign contributions, specifically mentioning China's influence operations.
• Prominent instances of foreign funding, including reported contributions from controversial organizations, are cited to underscore the potential risks of such funding.

Reporting Requirements

The bill introduces new reporting requirements for specific tax-exempt organizations. Key points include:

• Organizations must disclose any contributions over $10,000 received from foreign governments, foreign political parties, or entities controlled by them.
• This disclosure includes the name of the foreign government or entity and the total amount received.

Public Disclosure

The Secretary of the Treasury will be responsible for maintaining a publicly accessible, searchable database that includes:

• The disclosed contributions detailed by organizations.
• The names of organizations that have received these funds.
• The aggregate amounts received from specific foreign entities, including the People's Republic of China and its associated organizations.

Effective Date

The reporting amendments will be applicable to tax returns filed for taxable years beginning after the act becomes law.

Relevant Companies

None found.