H.R. 9721 - Fiscal Sponsorship Transparency Act of 2026 still remains in the early stages of the legislative process and is not law. However, tomorrow July 22nd, marks a key milestone in the legislative process. The bill is scheduled for markup by the House of Representatives Ways and Means Committee at 10am ET.
During the markup process, committee members will likely debate the proposal, adopt amendments, or vote to advance the bill to the full House. If approved, the legislation would still need to pass the House of Representatives, be considered and approved by the Senate, and be signed by the President before becoming law. Even then, implementation would likely require additional IRS guidance before new reporting requirements take effect.
Now is the time for action, we encourage you to lend your voice and take action now. Continue reading to learn what you can do.
The Fiscal Sponsorship Action Group continues to review the legislation and coordinate with national sector partners, including the National Council of Nonprofits, Independent Sector, Council on Foundations, and Philanthropy Roundtable, to better understand the bill's potential implications and coordinate an effective sector response.
What can you do?
-
Check whether your U.S. Representative serves on the House Ways and Means Committee.
-
If your Representative serves on the Committee, consider contacting their office to share your concerns about the proposed legislation. Consider asking your fiscally sponsored projects to do the same.
-
Use the Letter of Opposition to H.R. 9721 Template to draft and send a message to your Representative.
Access, download, and customize the Letter of Opposition Template for your organization. Whether you use the template in full or adapt it to reflect your organization's perspective, we encourage organizations contacting Representatives to use the common messaging provided to help present a coordinated voice across the fiscal sponsorship community.
While this legislation is directed at fiscal sponsors, its potential effects extend across the broader nonprofit and philanthropic ecosystem. We encourage fiscal sponsors, sponsored projects, funders, and other organizations that support the field to consider engaging where appropriate.
Resources
Additional Downloadable resources prepared by TSNE are attached
------------------------------
Tara Barrett-Olds
Social Impact Commons
------------------------------