Senator Tom Cotton (R-Arkansas) has introduced the Nonprofit Governance Integrity Act, a bill that seeks to amend the Internal Revenue Code of 1986. The legislation would bar foreign nationals from China, Russia, Iran, North Korea, and Cuba from serving on the boards of certain nonprofit organizations, specifically those classified as 501(c)(3), 501(c)(4), and 501(c)(6).
According to Senator Cotton, “Nonprofits that receive tax breaks should be completely free from malign foreign influence. Organizations influenced by adversarial foreign nationals should not benefit from our tax code.”
The proposed act would prevent any nonprofit with board members who are citizens or nationals of countries designated as Foreign Entities of Concern (FEOC) from receiving tax-exempt status. However, this restriction would not apply to churches or conventions or associations of churches.
The full text of the bill is available for review.
