S. 2305: Foreign Registration Obligations for Nonprofit Transparency Act

This bill is known as the Foreign Registration Obligations for Nonprofit Transparency Act, or FRONT Act. Its main purpose is to modify the existing Foreign Agents Registration Act of 1938 by establishing new requirements for certain tax-exempt nonprofit organizations that receive funding from foreign entities considered as countries of concern.

Key Provisions of the Bill

• Coverage of Nonprofits: The bill specifies that some tax-exempt organizations are to be treated as agents of foreign entities if they meet specific criteria. These organizations must receive funding from foreign principals associated with designated countries of concern, which include countries like China, North Korea, Russia, Iran, Cuba, and Venezuela.
• Definition of Foreign Principal: A foreign principal is defined to include the government or political parties of the foreign countries of concern, individuals from those countries, and corporations or entities that are significantly funded by those foreign sources.
• Reporting Requirements: Organizations identified as agents of foreign principals would be required to register under the Foreign Agents Registration Act. In their reports, they must disclose details regarding any agreements with foreign entities, including oral agreements, and outline the activities they engage in as a result of receiving foreign funding.
• Exceptions: There are some exceptions to the applicability of these regulations. For example, organizations that are already filing reports under the Lobbying Disclosure Act of 1995 are exempt from certain requirements. Additionally, organizations that fundraise for humanitarian assistance outside the United States can also have waivers applied to them.
• Amendments to Existing Law: The bill proposes a restructuring of sections within the current Foreign Agents Registration Act to accommodate these new provisions and to update the definitions and reporting requirements accordingly.
• Implementation Timeline: The amendments outlined in this bill will take effect 30 days after its enactment.

Countries of Concern

The bill specifically names the following countries as having the highest level of concern:

• People's Republic of China
• Democratic People's Republic of Korea
• Russian Federation
• Islamic Republic of Iran
• Republic of Cuba
• Bolivarian Republic of Venezuela

It also allows for the designation of additional countries by the Secretary of State as high concern based on foreign relations assessments.

Definitions

Several terms are defined in the bill to clarify its provisions, including:

• Agent of a Foreign Principal: Organizations receiving specified foreign funding are classified as agents under the bill.
• Political Activity: Organizations must disclose any political activities linked to their foreign funding, emphasizing transparency about potential influence from foreign entities.

Relevant Companies

None found.