HR 9772 — Foreign Funding Transparency Act

CHANGES IN EXISTING LAW MADE BY THE BILL,
 AS REPORTED

 A. Text of Existing Law Amended or Repealed by the Bill,
 as Reported

 Pursuant to clause 3(e) of rule XIII of the Rules of the 
House of Representatives, the text of each section proposed to 
be repealed by the bill is shown below:

 Changes in Existing Law Made by the Bill, as Reported

 In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 INTERNAL REVENUE CODE OF 1986

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Subtitle F--Procedure and Administration

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CHAPTER 61--INFORMATION AND RETURNS

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Subchapter A--RETURNS AND RECORDS

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PART III--INFORMATION RETURNS

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Subpart A--INFORMATION CONCERNING PERSONS SUBJECT TO SPECIAL PROVISIONS

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SEC. 6033. RETURNS BY EXEMPT ORGANIZATIONS.

 (a) Organizations required to file.--
 (1) In general.--Except as provided in paragraph (3), 
 every organization exempt from taxation under section 
 501(a) shall file an annual return, stating 
 specifically the items of gross income, receipts, and 
 disbursements, and such other information for the 
 purpose of carrying out the internal revenue laws as 
 the Secretary may by forms or regulations prescribe, 
 and shall keep such records, render under oath such 
 statements, make such other returns, and comply with 
 such rules and regulations as the Secretary may from 
 time to time prescribe; except that, in the discretion 
 of the Secretary, any organization described in section 
 401(a) may be relieved from stating in its return any 
 information which is reported in returns filed by the 
 employer which established such organization.
 (2) Being a party to certain reportable 
 transactions.--Every tax-exempt entity described in 
 section 4965(c) shall file (in such form and manner and 
 at such time as determined by the Secretary) a 
 disclosure of--
 (A) such entity's being a party to any 
 prohibited tax shelter transaction (as defined 
 in section 4965(e)), and
 (B) the identity of any other party to such 
 transaction which is known by such tax-exempt 
 entity.
 (3) Exceptions from filing.--
 (A) Mandatory exceptions.--Paragraph (1) 
 shall not apply to--
 (i) churches, their integrated 
 auxiliaries, and conventions or 
 associations of churches,
 (ii) any organization (other than a 
 private foundation, as defined in 
 section 509(a)) described in 
 subparagraph (C), the gross receipts of 
 which in each taxable year are normally 
 not more than $5,000, or
 (iii) the exclusively religious 
 activities of any religious order.
 (B) Discretionary exceptions.--The Secretary 
 may relieve any organization required under 
 paragraph (1) (other than an organization 
 described in section 509(a)(3)) to file an 
 information return from filing such a return 
 where he determines that such filing is not 
 necessary to the efficient administration of 
 the internal revenue laws.
 (C) Certain organizations.--The organizations 
 referred to in subparagraph (A)(ii) are--
 (i) a religious organization 
 described in section 501(c)(3);
 (ii) an educational organization 
 described in section 170(b)(1)(A)(ii);
 (iii) a charitable organization, or 
 an organization for the prevention of 
 cruelty to children or animals, 
 described in section 501(c)(3), if such 
 organization is supported, in whole or 
 in part, by funds contributed by the 
 United States or any State or political 
 subdivision thereof, or is primarily 
 supported by contributions of the 
 general public;
 (iv) an organization described in 
 section 501(c)(3), if such organization 
 is operated, supervised, or controlled 
 by or in connection with a religious 
 organization described in clause (i);
 (v) an organization described in 
 section 501(c)(8); and
 (vi) an organization described in 
 section 501(c)(1), if such organization 
 is a corporation wholly owned by the 
 United States or any agency or 
 instrumentality thereof, or a wholly-
 owned subsidiary of such a corporation.
 (b) Certain organizations described in section 501(c)(3).--
Every organization described in section 501(c)(3) which is 
subject to the requirements of subsection (a) shall furnish 
annually information, at such time and in such manner as the 
Secretary may by forms or regulations prescribe, setting 
forth--
 (1) its gross income for the year,
 (2) its expenses attributable to such income and 
 incurred within the year,
 (3) its disbursements within the year for the 
 purposes for which it is exempt,
 (4) a balance sheet showing its assets, liabilities, 
 and net worth as of the beginning of such year,
 (5) the total of the contributions and gifts received 
 by it during the year, and the names and addresses of 
 all substantial contributors,
 (6) the names and addresses of its foundation 
 managers (within the meaning of section 4946(b)(1)) and 
 highly compensated employees,
 (7) the compensation and other payments made during 
 the year to each individual described in paragraph (6),
 (8) in the case of an organization with respect to 
 which an election under section 501(h) is effective for 
 the taxable year, the following amounts for such 
 organization for such taxable year:
 (A) the lobbying expenditures (as defined in 
 section 4911(c)(1)),
 (B) the lobbying nontaxable amount (as 
 defined in section 4911(c)(2)),
 (C) the grass roots expenditures (as defined 
 in section 4911(c)(3)), and
 (D) the grass roots nontaxable amount (as 
 defined in section 4911(c)(4)),
 (9) such other information with respect to direct or 
 indirect transfers to, and other direct or indirect 
 transactions and relationships with, other 
 organizations described in section 501(c) (other than 
 paragraph (3) thereof) or section 527 as the Secretary 
 may require to prevent--
 (A) diversion of funds from the 
 organization's exempt purpose, or
 (B) misallocation of revenues or expenses,
 (10) the respective amounts (if any) of the taxes 
 imposed on the organization, or any organization 
 manager of the organization, during the taxable year 
 under any of the following provisions (and the 
 respective amounts (if any) of reimbursements paid by 
 the organization during the taxable year with respect 
 to taxes imposed on any such organization manager under 
 any of such provisions):
 (A) section 4911 (relating to tax on excess 
 expenditures to influence legislation),
 (B) section 4912 (relating to tax on 
 disqualifying lobbying expenditures of certain 
 organizations),
 (C) section 4955 (relating to taxes on 
 political expenditures of section 501(c)(3) 
 organizations), except to the extent that, by 
 reason of section 4962, the taxes imposed under 
 such section are not required to be paid or are 
 credited or refunded, and
 (D) section 4959 (relating to taxes on 
 failures by hospital organizations),
 (11) the respective amounts (if any) of--
 (A) the taxes imposed with respect to the 
 organization on any organization manager, or 
 any disqualified person, during the taxable 
 year under section 4958 (relating to taxes on 
 private excess benefit from certain charitable 
 organizations), and
 (B) reimbursements paid by the organization 
 during the taxable year with respect to taxes 
 imposed under such section,
 except to the extent that, by reason of section 4962, 
 the taxes imposed under such section are not required 
 to be paid or are credited or refunded,
 (12) such information as the Secretary may require 
 with respect to any excess benefit transaction (as 
 defined in section 4958),
 (13) such information with respect to disqualified 
 persons as the Secretary may prescribe,
 (14) such information as the Secretary may require 
 with respect to disaster relief activities,
 (15) in the case of an organization to which the 
 requirements of section 501(r) apply for the taxable 
 year--
 (A) a description of how the organization is 
 addressing the needs identified in each 
 community health needs assessment conducted 
 under section 501(r)(3) and a description of 
 any such needs that are not being addressed 
 together with the reasons why such needs are 
 not being addressed, and
 (B) the audited financial statements of such 
 organization (or, in the case of an 
 organization the financial statements of which 
 are included in a consolidated financial 
 statement with other organizations, such 
 consolidated financial statement), and
 (16) such other information for purposes of carrying 
 out the internal revenue laws as the Secretary may 
 require.
For purposes of paragraph (8), if section 4911(f) applies to 
the organization for the taxable year, such organization shall 
furnish the amounts with respect to the affiliated group as 
well as with respect to such organization.
 (c) Additional provisions relating to private foundations.--
In the case of an organization which is a private foundation 
(within the meaning of section 509(a))--
 (1) the Secretary shall by regulations provide that 
 the private foundation shall include in its annual 
 return under this section such information (not 
 required to be furnished by subsection (b) or the forms 
 or regulations prescribed thereunder) as would have 
 been required to be furnished under section 6056 
 (relating to annual reports by private foundations) as 
 such section 6056 was in effect on January 1, 1979, and
 (2) the foundation managers shall furnish copies of 
 the annual return under this section to such State 
 officials, at such times, and under such conditions, as 
 the Secretary may by regulations prescribe.
Nothing in paragraph (1) shall require the inclusion of the 
name and address of any recipient (other than a disqualified 
person within the meaning of section 4946) of 1 or more 
charitable gifts or grants made by the foundation to such 
recipient as an indigent or needy person if the aggregate of 
such gifts or grants made by the foundation to such recipient 
during the year does not exceed $1,000.
 (d) Section to apply to nonexempt charitable trusts and 
nonexempt private foundations.--The following organizations 
shall comply with the requirements of this section in the same 
manner as organizations described in section 501(c)(3) which 
are exempt from tax under section 501(a):
 (1) Nonexempt charitable trusts.--A trust described 
 in section 4947(a)(1) (relating to nonexempt charitable 
 trusts).
 (2) Nonexempt private foundations.--A private 
 foundation which is not exempt from tax under section 
 501(a).
 (e) Special rules relating to lobbying activities.--
 (1) Reporting requirements.--
 (A) In general.--If this subsection applies 
 to an organization for any taxable year, such 
 organization--
 (i) shall include on any return 
 required to be filed under subsection 
 (a) for such year information setting 
 forth the total expenditures of the 
 organization to which section 162(e)(1) 
 applies and the total amount of the 
 dues or other similar amounts paid to 
 the organization to which such 
 expenditures are allocable, and
 (ii) except as provided in paragraphs 
 (2)(A)(i) and (3), shall, at the time 
 of assessment or payment of such dues 
 or other similar amounts, provide 
 notice to each person making such 
 payment which contains a reasonable 
 estimate of the portion of such dues or 
 other similar amounts to which such 
 expenditures are so allocable.
 (B) Organizations to which subsection 
 applies.--
 (i) In general.--This subsection 
 shall apply to any organization which 
 is exempt from taxation under section 
 501 other than an organization 
 described in section 501(c)(3).
 (ii) Special rule for in-house 
 expenditures.--This subsection shall 
 not apply to the in-house expenditures 
 (within the meaning of section 
 162(e)(4)(B)(ii)) of an organization 
 for a taxable year if such expenditures 
 do not exceed $2,000. In determining 
 whether a taxpayer exceeds the $2,000 
 limit under this clause, there shall 
 not be taken into account overhead 
 costs otherwise allocable to activities 
 described in subparagraphs (A) and (D) 
 of section 162(e)(1).
 (iii) Coordination with section 
 527(f).--This subsection shall not 
 apply to any amount on which tax is 
 imposed by reason of section 527(f).
 (C) Allocation.--For purposes of this 
 paragraph--
 (i) In general.--Expenditures to 
 which section 162(e)(1) applies shall 
 be treated as paid out of dues or other 
 similar amounts to the extent thereof.
 (ii) Carryover of lobbying 
 expenditures in excess of dues.--If 
 expenditures to which section 162(e)(1) 
 applies exceed the dues or other 
 similar amounts for any taxable year, 
 such excess shall be treated as 
 expenditures to which section 162(e)(1) 
 applies which are paid or incurred by 
 the organization during the following 
 taxable year.
 (2) Tax imposed where organization does not notify.--
 (A) In general.--If an organization--
 (i) elects not to provide the notices 
 described in paragraph (1)(A) for any 
 taxable year, or
 (ii) fails to include in such notices 
 the amount allocable to expenditures to 
 which section 162(e)(1) applies 
 (determined on the basis of actual 
 amounts rather than the reasonable 
 estimates under paragraph (1)(A)(ii)),
 then there is hereby imposed on such 
 organization for such taxable year a tax in an 
 amount equal to the product of the highest rate 
 of tax imposed by section 11 for the taxable 
 year and the aggregate amount not included in 
 such notices by reason of such election or 
 failure.
 (B) Waiver where future adjustments made.--
 The Secretary may waive the tax imposed by 
 subparagraph (A)(ii) for any taxable year if 
 the organization agrees to adjust its estimates 
 under paragraph (1)(A)(ii) for the following 
 taxable year to correct any failures.
 (C) Tax treated as income tax.--For purposes 
 of this title, the tax imposed by subparagraph 
 (A) shall be treated in the same manner as a 
 tax imposed by chapter 1 (relating to income 
 taxes).
 (3) Exception where dues generally nondeductible.--
 Paragraph (1)(A) shall not apply to an organization 
 which establishes to the satisfaction of the Secretary 
 that substantially all of the dues or other similar 
 amounts paid by persons to such organization are not 
 deductible without regard to section 162(e).
 (f) Certain organizations described in section 501(c)(4).--
Every organization described in section 501(c)(4) which is 
subject to the requirements of subsection (a) shall include on 
the return required under subsection (a)--
 (1) the information referred to in paragraphs (11), 
 (12) and (13) of subsection (b) with respect to such 
 organization, and
 (2) in the case of the first such return filed by 
 such an organization after submitting a notice to the 
 Secretary under section 506(a), such information as the 
 Secretary shall by regulation require in support of the 
 organization's treatment as an organization described 
 in section 501(c)(4).
 (g) Returns required by political organizations.--
 (1) In general.--This section shall apply to a 
 political organization (as defined by section 
 527(e)(1)) which has gross receipts of $25,000 or more 
 for the taxable year. In the case of a political 
 organization which is a qualified State or local 
 political organization (as defined in section 
 527(e)(5)), the preceding sentence shall be applied by 
 substituting ``$100,000'' for ``$25,000''.
 (2) Annual returns.--Political organizations 
 described in paragraph (1) shall file an annual 
 return--
 (A) containing the information required, and 
 complying with the other requirements, under 
 subsection (a)(1) for organizations exempt from 
 taxation under section 501(a), with such 
 modifications as the Secretary considers 
 appropriate to require only information which 
 is necessary for the purposes of carrying out 
 section 527, and
 (B) containing such other information as the 
 Secretary deems necessary to carry out the 
 provisions of this subsection.
 (3) Mandatory exceptions from filing.--Paragraph (2) 
 shall not apply to an organization--
 (A) which is a State or local committee of a 
 political party, or political committee of a 
 State or local candidate,
 (B) which is a caucus or association of State 
 or local officials,
 (C) which is an authorized committee (as 
 defined in section 301(6) of the Federal 
 Election Campaign Act of 1971) of a candidate 
 for Federal office,
 (D) which is a national committee (as defined 
 in section 301(14) of the Federal Election 
 Campaign Act of 1971) of a political party,
 (E) which is a United States House of 
 Representatives or United States Senate 
 campaign committee of a political party 
 committee,
 (F) which is required to report under the 
 Federal Election Campaign Act of 1971 as a 
 political committee (as defined in section 
 301(4) of such Act), or
 (G) to which section 527 applies for the 
 taxable year solely by reason of subsection 
 (f)(1) of such section.
 (4) Discretionary exception.--The Secretary may 
 relieve any organization required under paragraph (2) 
 to file an information return from filing such a return 
 if the Secretary determines that such filing is not 
 necessary to the efficient administration of the 
 internal revenue laws.
 (h) Controlling organizations.--Each controlling organization 
(within the meaning of section 512(b)(13)) which is subject to 
the requirements of subsection (a) shall include on the return 
required under subsection (a)--
 (1) any interest, annuities, royalties, or rents 
 received from each controlled entity (within the 
 meaning of section 512(b)(13)),
 (2) any loans made to each such controlled entity, 
 and
 (3) any transfers of funds between such controlling 
 organization and each such controlled entity.
 (i) Additional notification requirements.--Any organization 
the gross receipts of which in any taxable year result in such 
organization being referred to in subsection (a)(3)(A)(ii) or 
(a)(3)(B)--
 (1) shall furnish annually, in electronic form, and 
 at such time and in such manner as the Secretary may by 
 regulations prescribe, information setting forth--
 (A) the legal name of the organization,
 (B) any name under which such organization 
 operates or does business,
 (C) the organization's mailing address and 
 Internet web site address (if any),
 (D) the organization's taxpayer 
 identification number,
 (E) the name and address of a principal 
 officer, and
 (F) evidence of the continuing basis for the 
 organization's exemption from the filing 
 requirements under subsection (a)(1), and
 (2) upon the termination of the existence of the 
 organization, shall furnish notice of such termination.
 (j) Loss of exempt status for failure to file return or 
notice.--
 (1) In general.--
 (A) Notice.--If an organization described in 
 subsection (a)(1) or (i) fails to file the 
 annual return or notice required under either 
 subsection for 2 consecutive years, the 
 Secretary shall notify the organization--
 (i) that the Internal Revenue Service 
 has no record of such a return or 
 notice from such organization for 2 
 consecutive years, and
 (ii) about the revocation that will 
 occur under subparagraph (B) if the 
 organization fails to file such a 
 return or notice by the due date for 
 the next such return or notice required 
 to be filed.
 The notification under the preceding sentence 
 shall include information about how to comply 
 with the filing requirements under subsections 
 (a)(1) and (i).
 (B) Revocation.--If an organization described 
 in subsection (a)(1) or (i) fails to file an 
 annual return or notice required under either 
 subsection for 3 consecutive years, such 
 organization's status as an organization exempt 
 from tax under section 501(a) shall be 
 considered revoked on and after the date set by 
 the Secretary for the filing of the third 
 annual return or notice. The Secretary shall 
 publish and maintain a list of any organization 
 the status of which is so revoked.
 (2) Application necessary for reinstatement.--Any 
 organization the tax-exempt status of which is revoked 
 under paragraph (1) must apply in order to obtain 
 reinstatement of such status regardless of whether such 
 organization was originally required to make such an 
 application.
 (3) Retroactive reinstatement if reasonable cause 
 shown for failure.--If, upon application for 
 reinstatement of status as an organization exempt from 
 tax under section 501(a), an organization described in 
 paragraph (1) can show to the satisfaction of the 
 Secretary evidence of reasonable cause for the failure 
 described in such paragraph, the organization's exempt 
 status may, in the discretion of the Secretary, be 
 reinstated effective from the date of the revocation 
 under such paragraph.
 (k) Additional provisions relating to sponsoring 
organizations.--Every organization described in section 
4966(d)(1) shall, on the return required under subsection (a) 
for the taxable year--
 (1) list the total number of donor advised funds (as 
 defined in section 4966(d)(2)) it owns at the end of 
 such taxable year,
 (2) indicate the aggregate value of assets held in 
 such funds at the end of such taxable year, and
 (3) indicate the aggregate contributions to and 
 grants made from such funds during such taxable year.
 (l) Additional provisions relating to supporting 
organizations.--Every organization described in section 
509(a)(3) shall, on the return required under subsection (a)--
 (1) list the supported organizations (as defined in 
 section 509(f)(3)) with respect to which such 
 organization provides support,
 (2) indicate whether the organization meets the 
 requirements of clause (i), (ii), or (iii) of section 
 509(a)(3)(B), and
 (3) certify that the organization meets the 
 requirements of section 509(a)(3)(C).
 (m) Additional information required from CO-OP insurers.--An 
organization described in section 501(c)(29) shall include on 
the return required under subsection (a) the following 
information:
 (1) The amount of the reserves required by each State 
 in which the organization is licensed to issue 
 qualified health plans.
 (2) The amount of reserves on hand.
 (n) Mandatory electronic filing.--Any organization required 
to file a return under this section shall file such return in 
electronic form.
 (o) Requirement to report certain information with respect to 
excise tax based on investment income of private colleges and 
universities.--Each applicable educational institution 
described in section 4968(c) which is subject to the 
requirements of subsection (a) shall include on the return 
required under subsection (a)--
 (1) the number of tuition-paying students taken into 
 account under section 4968(c), and
 (2) the number of students of such institution 
 (determined under the rules of section 4968(e)).
 (p) Contributions Received From Foreign Sources.--
 (1) In general.--Every specified tax exempt 
 organization shall include on the return required under 
 subsection (a) the following information:
 (A) The aggregate amount of contributions 
 received from foreign nationals (as defined in 
 section 319(b) of the Federal Election Campaign 
 Act of 1971) during the taxable year.
 (B) The aggregate amount of contributions 
 received from foreign nationals (as so defined) 
 stated separately with respect to each foreign 
 country of concern (as defined in section 10612 
 of the Research and Development, Competition, 
 and Innovation Act) during the taxable year.
 (2) Identification of foreign country of 
 contribution.--For purposes of this subsection, the 
 foreign country with respect to which a contribution is 
 received is--
 (A) in the case of a contribution made by an 
 individual, each foreign country of which such 
 individual is a citizen, and
 (B) in the case of any other contribution, 
 the foreign country under the laws of which the 
 person making such contribution was created or 
 organized.
 (3) Specified tax exempt organization.--For purposes 
 of this subsection, the term ``specified tax exempt 
 organization'' means, with respect to any taxable year, 
 any organization described in section 501(c) if--
 (A) the gross receipts of such organization 
 for the preceding taxable year equal or exceed 
 $200,000, or
 (B) the assets of such organization 
 (determined as of the close of such preceding 
 taxable year) equal or exceed $500,000.
 (4) Reliance on representation.--For purposes of this 
 subsection, an organization may rely on the 
 representation of a donor as to the nationality of such 
 donor unless such organization knows or should have 
 known that such representation is false.
 (5) Regulations.--The Secretary may require specified 
 tax exempt organizations to collect such information 
 from foreign nationals who make contributions to such 
 organizations at such time and in such manner as the 
 Secretary determines appropriate for the purposes of 
 this subsection.
 [(p)] (q) Cross references.--For provisions relating to 
statements, etc., regarding exempt status of organizations, see 
section 6001.
 For reporting requirements as to certain liquidations, 
dissolutions, terminations, and contractions, see section 
6043(b). For provisions relating to penalties for failure to 
file a return required by this section, see section 6652(c).
 For provisions relating to information required in connection 
with certain plans of deferred compensation, see section 6058.

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 VII. DISSENTING VIEWS

 Committee Democrats oppose H.R. 9772, Foreign Funding 
Transparency Act. This bill does nothing to address the 
affordability crisis or bring relief to families struggling 
under the weight of higher health care bills, pain at the pump, 
or rising grocery costs. The Majority would rather manufacture 
problems involving charities and unions than stand up to the 
President, root out corruption, and lower costs for 
constituents. The Committee could have marked up legislation to 
revoke his tax immunity agreement, dissolve the ballroom 
project, or turn off the President's trade-related price hikes, 
if only the Majority would stiffen their spines.
 This bill is the Majority's direct attack on charities and 
unions. This bill is redundant, overly broad, and onerous. This 
bill is redundant because charitable nonprofit organizations 
already report the names and addresses of substantial donors to 
the Internal Revenue Service (IRS) through a non-public 
schedule on the annual Form 990, Return of Organization Exempt 
From Income Tax. These commonsense safeguards already protect 
taxpayers and preserve donor privacy. Additionally, these 
requirements help preserve the integrity of our charitable 
organizations.
 This bill requires ``specified'' tax-exempt organizations--
i.e., organizations that file a Form 990--to report on their 
return the aggregate amount of contributions received from 
foreign nationals during the taxable year. In addition, these 
organizations must separately report any contributions on their 
return from each ``foreign country of concern'' as defined by 
Section 10612 of the Research and Development, Competition, and 
Innovation Act. These countries include: the People's Republic 
of China, the Democratic People's Republic of Korea, the 
Russian Federation, the Islamic Republic of Iran, and any other 
country the Secretary of State so designates.
 H.R. 9772 is overly broad in its application to 
organizations. It applies to any tax-exempt organization 
described in Section 501(c) that files a Form 990, including 
unions, civil rights organizations, food banks, community 
health centers, business leagues, and trade associations. 
Committee Democrats offered an amendment to exclude unions from 
this bill, which was defeated on a party-line vote. It is 
unclear if union dues count as ``contributions'' for purposes 
of the bill. If ``contribution'' in the context of a labor 
union were to be interpreted to mean union dues, then unions 
would have to inquire into the citizenship of every member and 
maintain lists that group members by their nationality.
 Unions represent a workforce as it is hired by the 
employer. That workforce may include both U.S. citizens and 
foreign nationals as defined by this bill, which means the bill 
imposes a significant and divisive burden on labor unions. A 
represented employer could hire one foreign national into the 
bargaining unit. That foreign national could be fully 
authorized to work in this country. Once the employer places 
that foreign national into the bargaining unit, the union is 
obligated to represent them, and they are entitled to 
participate.
 Furthermore, the bill is onerous. It piles on unnecessary 
bureaucratic items that would make it harder for nonprofits, 
including charities, to serve their communities. It would 
require nonprofit organizations to identify, track, certify, 
and publicly disclose ``contributions'' from foreign nationals. 
The bill effectively forces organizations to learn the 
nationality of their donors, even donors contributing small 
amounts of cash (there is not a de minimis threshold in the 
bill). Currently, nonprofits do not collect this information 
with respect to donations. Expanding the list of questions 
nonprofits must ask and the information they must keep and/or 
report could damage relationships with their donors and 
community, chilling charitable giving and hurting the 
communities these nonprofits support. Some donors asked to 
report additional information about their citizenship will 
simply choose not to give.
 For these reasons, we oppose this bill.
 Sincerely,
 Richard E. Neal,
 Ranking Member.