Nonprofit Resources
Updates on the Foreign Grant Reporting Act
In May 2024, the U.S. House Ways and Means Committee voted unanimously (38-0) to advance the Foreign Grant Reporting Act. While the intent of the proposed legislation is to help uncover funds sent to terrorists and others engaged in illicit activity abroad, it could have serious unintended consequences for mission organizations, missionaries, and their local partners serving in regions of severe persecution.
Overview of the Proposed Legislation
Under current law, certain U.S. tax-exempt organizations must publicly disclose information about grants made to domestic, but not foreign, entities.
The proposed Foreign Grant Reporting Act would amend the Internal Revenue Code to require the public disclosure of information about grants to foreign entities on IRS Form 990 Schedule F, Statement of Activities Outside the United States. This information would include the recipient’s name and address, the aggregate amount of grants and other funding provided, and the recipient’s charitable status.
If the bill is signed into law as it is currently worded, the disclosure of detailed information about grant recipients could expose the identity of Christian ministries and their personnel working in countries with governments closed to the Gospel, placing them at significant risk of persecution and physical harm.
Next Steps
The proposed legislation has not yet been taken up by the House of Representatives for a floor vote. While it may not ever reach that stage, the fact that it had unanimous, bipartisan support from the House Ways and Means Committee is significant.
The Evangelical Council for Financial Accountability (ECFA) has been working to encourage the addition of precautions for Christian workers at risk internationally. To balance the legitimate work of Christian ministries operating internationally with the U.S. government’s apparent legitimate interest in preventing aid and comfort to terrorists and terrorist organizations, Congress should, at a minimum, authorize the redaction of this information from the public inspection copies of IRS Form 990.
Ministry leaders also can engage with their elected officials on this topic. ECFA’s letter to Congressman Lloyd Smucker, the author of the bill, may provide a helpful starting point for your own communication, or you can reach out to ECFA for guidance.
Please contact us with any questions.
Helpful ECFA Resources:
New Foreign Grant Reporting Bill Could Put Missions At Risk
ECFA Warns of Legislation’s Potential Danger for Missions Partners