Safeguarding Charity Act

The Safeguarding Charity Act (S 1428) clarifies that tax exemptions for charitable organizations (including those under IRS 501(c)(3)) are not considered "Federal financial assistance" under federal law, rules, or regulations. This directly affects tax-exempt charities, religious organizations, and retirement plans (covered under IRS sections 501(c), 501(d), and 401(a)) by excluding their tax benefits from the definition of federal aid. The bill amends the U.S. Code to add a new section explicitly stating this exclusion and includes a rule of construction to prevent retroactive application to tax exemptions before the law's enactment. The legislation aims to prevent regulatory confusion about whether tax exemptions qualify as federal financial assistance in policy contexts.