H.R. 4232: No Tax Dollars for Riots

This bill, titled "No Tax Dollars for Riots," aims to impose penalties on nonprofit entities if certain misconduct occurs among their leadership. Here is a summary of the main provisions of the bill:

Short Title

The legislation is referred to as the "No Tax Dollars for Riots." This title reflects its focus on preventing federal funding from being used in association with certain criminal activities linked to nonprofit organizations.

Penalties Related to Misconduct

The bill outlines specific penalties for officers and board members of nonprofit organizations who engage in misconduct as defined under U.S. law. The provisions include:

Limitation on Federal Funding

Nonprofit organizations that are exempt from federal taxation will not be able to receive federal funds if any of their officers or board members are:

• Convicted of crimes specified in sections 111 (pertaining to assaulting, resisting, or impeding certain officers) or 2101 (pertaining to riots) of Title 18 of the United States Code, and
• The misconduct that led to the conviction happened while they were serving in their official capacity.

Limitation on Tax Exemption

Additionally, nonprofit organizations that qualify for tax exemption under section 501 of the Internal Revenue Code will lose this exemption if:

• An officer or board member is convicted of the aforementioned crimes, and
• The conviction was related to actions taken while they were serving in their official role.

In summary, if a leader of a nonprofit organization is convicted of serious offenses related to riots or assaults on officers during their term, the organization can be penalized by losing access to federal funding and may also lose its tax-exempt status.

Relevant Companies

None found