[Title]
An Act Concerning the Restriction of Tax-Exempt Status Based on Beneficiary Citizenship
[Preamble]
WHEREAS, non-profit organizations and entities receiving tax funds benefit from tax-exempt status which imposes a duty to prioritize benefits for U.S. citizens; and
WHEREAS, it is imperative to ensure that tax-exempt funds are used in alignment with national interests and taxpayer intentions;
BE IT ENACTED by the Senate and House of Representatives of [State/Country] in Congress assembled:
Section 1. Short Title
This Act may be cited as the “Tax-Exempt Beneficiary Compliance Act”.
Section 2. Definitions
For the purposes of this Act:
- “Non-profit Organization” refers to any entity that operates on a not-for-profit basis and enjoys tax-exempt status under [relevant sections of the Tax Code].
- “Tax Funds” refers to any financial assistance from U.S. federal, state, or local governments, including grants, subsidies, or tax exemptions.
- “Non-US Citizen” refers to any individual who is not a citizen of the United States of America.
- “Direct Benefit” refers to any service, financial aid, or support provided explicitly and primarily to non-US citizens.
Section 3. Restrictions on Tax-Exempt Status
- Any non-profit organization or entity that provides direct benefits to non-US citizens shall lose its tax-exempt status if such benefits are deemed to comprise more than a minor portion of its total activities or expenditures.
- The determination of what constitutes a “minor portion” shall be made by [appropriate governmental body] and shall not exceed 5% of the total annual expenditures of the organization.
Section 4. Financial Liability of Board Members
- Board members of any non-profit organization found to be in violation of Section 3 shall be held financially liable for the repayment of:
- All tax funds received by the organization during the period of non-compliance.
- An additional penalty amounting to 10% of the tax funds received to cover administrative costs and deter future violations.
- Liability shall extend to personal assets of the board members involved in decision-making processes that led to the violation.
Section 5. Enforcement and Reporting Requirements
- The [appropriate regulatory body] shall enforce the provisions of this Act.
- Non-profit organizations must annually certify compliance with this Act and provide a detailed financial report that includes a breakdown of beneficiaries by citizenship status.