Charity Lawyer Blog

The Fiscal Sponsorship Transparency Act, a new federal bill, would impose reporting requirements on fiscal sponsors for the first time, and it has already moved further than most nonprofit legislation gets. Representative Lloyd Smucker introduced the Fiscal Sponsorship Transparency Act of 2026 (HR 9721) on July 16, 2026, and the House Ways and Means Committee voted 23-15 to a...

On April 17, 2026, the IRS issued a Whistleblower Alert flagging the misuse, diversion, or fraudulent use of federal funds and grants by tax-exempt organizations, individuals, and businesses. Whistleblower Alerts are a relatively new tool the IRS is using to spotlight high-risk areas and invite tips from people with direct knowledge of noncompliance. What does this mean for o...

Arizona has no shortage of golf clubs, country clubs, yacht clubs, and athletic and dining clubs organized as tax-exempt social clubs under Internal Revenue Code Section 501(c)(7). Unlike a 501(c)(3) charity, a social club exists to serve its members, not the public, and it is funded by dues rather than donations. That difference changes the compliance picture in ways that tr...

Arizona is one of only a handful of states that does not require charitable organizations to register before soliciting contributions. Governor Brewer signed HB 2457 in 2013, and since September of that year, most Arizona charities ha...

On April 23, 2026, the Treasury Department announced that the IRS intends to revise Form 990 to shed more light on how tax-exempt organizations handle government grants, government contracts, and fiscal sponsorship arrangements. Treasury and the IRS say the goal is to make it easier to track how money moves in and out of exempt organizations and to confirm that public funds a...