GUARD Act

The GUARD Act would deny tax-exempt status to U.S. nonprofit organizations that receive contributions from citizens or nationals of designated foreign adversaries. This change directly affects charities, religious groups, and other 501(c)(3) and 501(c)(4) organizations that accept donations from individuals in countries like China, Cuba, Iran, North Korea, and Russia. Under the bill, any organization receiving such contributions would lose its tax-exempt status starting with the taxable year following the donation. The Secretary of the Treasury, in consultation with the Secretary of State, could also designate additional countries as foreign adversaries if national security interests require it. This provision applies only to contributions received after the bill is enacted into law.