Safeguarding Charity Act

This bill clarifies that tax-exempt status for charities (under IRS Section 501(c)(3)) does not count as "federal financial assistance" for other federal programs. It directly affects tax-exempt organizations, such as charities and religious groups, by preventing their tax exemption from automatically qualifying them for other federal benefits or programs. The key provision amends the U.S. Code to define "federal financial assistance" as excluding tax exemptions, ensuring these organizations aren't mistakenly included in programs meant for recipients of direct federal funds. This change applies prospectively and does not alter how tax exemptions were treated before the bill's enactment.