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Commentary By Tal Fortgang

An IRS Reform That Could Curb Lawless Nonprofits

Small changes to ‘fiscal sponsorships’ would make it harder to raise money for unlawful causes.

The nonprofit world has become a political battleground. The Trump administration has blamed some left-wing nonprofit groups for stoking political violence, following demonstrations in recent years that often included law-breaking activity. Many nonprofits that deal with political matters are spooked. Thousands of nonprofit leaders recently signed a petition condemning the administration’s attempts “to intimidate and silence charitable groups.”

But some radical groups are abusing the nonprofit system to support criminal activity such as blocking roads, occupying buildings, vandalizing property, even financing terrorism.

A small reform could improve nonprofit transparency consistent with the rule of law. Before jumping to prosecuting or even investigating nonprofits, the administration—or, better, Congress—could change the practice known as fiscal sponsorship.

Continue reading the entire piece here at the Wall Street Journal (paywall)

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Tal Fortgang is an adjunct fellow at the Manhattan InstituteHe was a 2023 Sapir Fellow

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