Charitable Organizations - Charitable Donation and Tax-Exempt Status - Revocation (Keeping Charities Nonpartisan Act of 2026)

HB 514, the "Keeping Charities Nonpartisan Act of 2026," prohibits charitable organizations recognized by the IRS as tax-exempt (with deductible donations) from participating in political campaigns for or against candidates. It requires the Secretary of State and Attorney General to jointly revoke a charity’s state tax-exempt status if they violate this rule, and mandates that organizations losing status forfeit state income, sales, use, and property tax exemptions. The bill amends Maryland law to define "charitable organization" to include IRS-recognized groups and strengthens enforcement mechanisms for political activity violations. This directly affects nonprofits currently holding federal tax-exempt status that operate in Maryland.