S 17 — Sunlight for Unaccountable Non-profits (SUN) Act

Summary

Sunlight for Unaccountable Non-profits (SUN) Act This bill expands the disclosure requirements for certain tax-exempt organizations. This bill requires the annual tax return information for tax-exempt organizations and deferred compensation plans to be made available to the public at no charge and in an open structured data format that is processable by computers, with the information easy to find, access, reuse, and download in bulk. The bill also requires the disclosure of the names and addresses of contributors of $5,000 or more to tax-exempt organizations that participate or intervene in political campaigns on behalf of, or in opposition to, any candidate for public office.

Bill Text

• Introduced Introduced in Senate Current html January 23, 2023

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The bill modifies how tax-exempt organizations disclose information by requiring searchable formats and identifying certain contributors.

• Section 6104(b)

  made available to the public at such time and in such places as the Secretary may prescribe. → made available to the public at no charge and in an open, structured data format that is processable by computers with the information easy to find, access, reuse, and download in bulk.

  This change requires that return information from tax-exempt organizations must be provided online in a user-friendly, searchable format.

• Section 6104(b)

  Nothing in this subsection shall authorize the Secretary to disclose the name and address of any contributor to any organization → In the case of any applicable organization or trust, such information shall include the name and address of any qualified contributor to such organization which is required to be included on the return and the total contributions of such qualified contributor, but nothing in this subsection shall authorize the Secretary to disclose the name or address of any other contributor to such organization or any contributor to any other organization

  This amendment allows the disclosure of names and addresses of certain contributors to tax-exempt organizations that engage in political activities, while still protecting the identity of other contributors.

• Section 6104(b)

  The information → (1) In general.--The information

  This change initiates a numbered structure for the definitions and information related to disclosures concerning applicable organizations.

• Section 6104(b)

  (2) Definitions.--For purposes of paragraph (1)— (A) Applicable organization or trust.—The term 'applicable organization or trust' means any organization or trust which— (i) indicates on an application (or amendment to an application) for recognition of exemption from tax under section 501(a) that such organization has or plans to spend money attempting to influence the selection, nomination, election, or appointment of any person to a public office, (ii) asserts on a return that such organization participated in, or intervened in (including through the publishing or distributing of statements), a political campaign on behalf of, or in opposition to, any candidate for public office, (iii) has filed, or was required to file, a statement or report under subsection (c) or (g) of section 304 of the Federal Election Campaign Act of 1974 with respect to independent expenditures made during the taxable year, or (iv) has filed, or was required to file, a statement under section 304(f) of such Act with respect to disbursements for electioneering communications made during the taxable year.

  This provision defines which organizations are subject to the new disclosure requirements based on their political activity.

• Section 6104(b)

  (B) Qualified contributor.—The term 'qualified contributor' means, with respect to any applicable organization or trust, any person who made aggregate contributions (in money or other property) to such applicable organization or trust during the taxable year in an amount valued at $5,000 or more.

  This definition establishes a threshold for identifying contributors whose information must be disclosed.

• Section 6104(d)(3)(A)

  In the case of any applicable organization or trust, any copies of annual returns provided under paragraph (1) shall include information relating to the name and address of any qualified contributor (as defined in subsection (b)(2)(B)) to such organization and the total contributions of such qualified contributor, but nothing in such paragraph shall require the disclosure of the name or address of any other contributor to such organization or any contributor to any other organization (other than a private foundation (within the meaning of section 509(a)) or political organization exempt from taxation under section 527). → In the case of any applicable organization or trust (as defined in subsection (b)(2)(A)), any copies of annual returns provided under paragraph (1) shall include information relating to the name and address of any qualified contributor (as defined in subsection (b)(2)(B)) to such organization and the total contributions of such qualified contributor, but nothing in such paragraph shall require the disclosure of the name or address of any other contributor to such organization or any contributor to any other organization (other than a private foundation (within the meaning of section 509(a)) or political organization exempt from taxation under section 527).

  The amendment clarifies that annual returns must include details about qualified contributors of applicable organizations, while still protecting the identities of other contributors.

Action History

1. January 23, 2023

   Introduced in Senate

2. January 23, 2023

   Read twice and referred to the Committee on Finance.

Sponsors

• Jon Tester · Primary
• King, Angus S., Jr. · Cosponsor
• Elizabeth Warren · Cosponsor

Subjects