Congress introduces bill to protect charities' tax-exempt status

The following quote may be attributed to Alliance Defending Freedom Senior Counsel Greg Baylor, director of the ADF Center for Religious Schools, regarding U.S. Sen. Marco Rubio and U.S. Rep. Greg Steube’s introduction of the Safeguarding Charity Act, a bill to reaffirm that tax-exempt status does not constitute “federal financial assistance.” Receipt of federal financial assistance triggers multiple burdensome federal laws under which charities and other nonprofits could lose their tax-exempt status:

“The Safeguarding Charity Act seeks to confirm what has always been true: a nonprofit’s tax-exempt status is not government funding and thus does not trigger multiple burdensome federal laws under which charities and other nonprofits could lose their tax-exempt status. Across the country, charities and nonprofits provide invaluable services to their communities. Yet some courts have wrongly held that the government is actively funding these groups simply by permitting them to keep the contributions donors give them. These court decisions unexpectedly subject nonprofits to a number of expensive legal obligations they never contemplated when they applied for and received their tax-exempt status. Worse, the IRS could punish a nonprofit unable to comply with these unexpected, burdensome requirements by stripping its tax-exempt status—something Congress never intended. We commend Sen. Rubio and Rep. Steube for bringing forth this critical legislation to protect nonprofit organizations so they can continue to serve their communities free from unfair and unexpected government overreach.”

Alliance Defending Freedom is an alliance-building, non-profit legal organization committed to protecting religious freedom, free speech, parental rights, and the sanctity of life.

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