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A U.S. House Committee on Ways & Means hearing on “Foreign Influence in American Nonprofits” last month and recent letters by Republican state Attorneys General accusing specific organizations of violating FARA have resulted in some additional public attention about how FARA relates to the nonprofit/tax-exempt sector.

We have produced a one-page primer explaining FARA for nonprofits and tax-exempt organizations here.  This Blog post provides additional relevant information.     

What Has Changed Recently with FARA that Potentially Affects Nonprofits?

While the Ways & Means hearing and the Republican AG letters drew public attention that could potentially spur the U.S. Department of Justice to action, neither changed the law nor materially affected the FARA landscape.  Similar FARA-related hearings and letters have been a regular occurrence since 2016, with little or no discernable impact on interpretation and/or enforcement of the law.  While this time could certainly be different, we think the following other developments are also worthy of attention for nonprofits:

• President Trump’s National Security Memorandum. After U.S. Attorney General Pamela Bondi effectively shelved most FARA enforcement in February 2025, President Trump reprioritized FARA enforcement by issuing a late September 2025 National Security Memorandum that directed the investigation of “non-governmental organizations and American citizens residing abroad or with close ties to foreign governments, agents, citizens, foundations, or influence networks engaged in violations of the Foreign Agents Registration Act (22 U.S.C. 611 et seq.)…”  The Memorandum was unusual, in that it specifically called out non-governmental organizations and even underlined the reference to FARA in the text.  Despite its emphasis on FARA and nonprofits, Attorney General Bondi’s December 2025 directive that interpreted the President’s National Security Memorandum did not mention FARA.  Nonprofits should nonetheless pay attention to the Memorandum because it provides legal authorization for prosecutors to later use resources for FARA enforcement on a potentially large scale.
• The Biden DOJ’s Uneven FARA Interpretations. Nonprofits had historically been able to rely on a key and relatively clear FARA exemption at 22 U.S.C. § 613(d)(2) that allowed U.S. nonprofits to avoid FARA registration as long as their activities were not “directed by a foreign government or foreign political party nor intended to promote the interests of either.”  In its final year, the Biden Department of Justice workshopped the addition of a “totality of the circumstances” element to this Section 613(d)(2) exemption.  This “totality” overlay shifts FARA analysis from a focus on any nexus with a foreign government or foreign political party over to the application of a non-exhaustive multi-factor test to determine whether a foreign interest would “predominate,” regardless of whether that foreign interest is a private interest or a governmental/political interest.  The status of this roundly criticized experiment remains to be seen under the new Trump DOJ, but the Biden DOJ certainly muddied the water as to how this key exemption can apply to nonprofits.  Additionally, in 2024, the Biden DOJ dusted off a part of the law that says “agent” status can be triggered when a U.S. person “solicits, collects, disburses, or dispenses” funds for a foreign interest.  This part of the “agent” definition had previously only applied to political or governmental fundraising efforts, but the Department opened the door to a potentially broader interpretation that could cover other fundraising work by nonprofits. 

• States’ “Baby FARA” Laws. Federal compliance is no longer the only FARA-related concern for nonprofits.  Since the start of 2025, several states (e.g. Arkansas, Florida, Louisiana, Nebraska, Texas) have adopted so-called “baby FARA” laws, and similar bills have been considered in legislatures across the country.  Although these state laws resemble FARA in structure in some respects, most apply exclusively to activities conducted on behalf of foreign principals from designated adversarial nations.  It is also worth noting these state laws are not necessarily narrower than FARA, as they generally exclude the exemptions that allow many organizations to avoid federal-level registration under FARA.  For nonprofits, this means activities that usually fall within one of FARA's recognized exemptions (e.g. the Religious, Scholastic, Academic, Scientific, or Fine Arts Exemption) may nonetheless face registration obligations under an applicable state law that contains no comparable carve-out.

What Should Nonprofits Do in this Environment?

The uncertainty surrounding FARA enforcement and interpretation can potentially paralyze a nonprofit organization.  To avoid that, we suggest taking the following practical steps to address potential FARA risk:

• Conduct an Inventory of Your Organization’s Cross-Border Relationships. Given the recent uneven interpretation of one or more key FARA exemptions, it is more important than ever to avoid circumstances where your organization becomes an “agent” unwarily.  Here are a few questions that you can use to help catalog your current relationships with foreign individuals and entities:
  • Funding. Does your organization receive any funds from non-U.S. sources?  Are any of those funding sources a foreign government, foreign political party, or a government-adjacent entity?  Are any projects funded by a non-U.S. source designated in whole or in part for U.S. grants or U.S. programmatic activities? How much of your organization’s overall funding comes from non-U.S. sources? 
  • Gifts. Do any employees receive repeated or lavish gifts from foreign government officials or foreign political officials?
  • Collaboration. Does your organization formally collaborate via MOU with any foreign entity?  Does your organization informally collaborate with any foreign entity?  Does the collaboration with a foreign entity, whether formal or informal, involve an event attended by a U.S. audience or a publication distributed to a U.S. audience?  Does your organization plan to feature a foreign government official or foreign political official at an upcoming event that you are holding for a U.S. audience?
  • Meetings. Does your organization meet with U.S. government officials or U.S. journalists?  Does your organization arrange meetings for non-U.S. persons with U.S. government officials or U.S. journalists? 
  • Other. Is your organization soliciting funds from U.S. donors to go to any non-U.S. entity?  Does your organization ever disseminate in the U.S. any materials that have been authored or provided by a foreign leader or a foreign entity?  Does your organization ever make suggestions to non-U.S. persons about how, when, and what to communicate to a U.S. government official, a U.S. journalist, or the public in the U.S.?

• Make Sure Reality is Documented, and that Reality Matches the Documents. Nonprofits are not necessarily required to register under FARA when they receive funds for their projects from foreign sources, when they collaborate as equals with foreign entities, or when they otherwise interact with foreign interests.  Many nonprofits, at least, do not think of themselves as entering into an agent-principal relationship in those cases.  Inaccurate verbiage in agreements or other documentation in such instances, however, can create unnecessary FARA risk by wrongly suggesting an agent-principal relationship does exist with a foreign funder/collaborator.  On the other hand, a nonprofit cannot avoid potential FARA exposure by simply inserting “non-agent” boilerplate into a grant agreement to “paper over” an agent-principal relationship that develops.  Our suggestion?  Make sure that the underlying reality of a relationship with a foreign funder, partner, or associate is accurately memorialized.  And then make sure that what it says in writing about your organization’s relationship with the foreign counterpart is actually reflected in your subsequent interactions.
• Know When and How FARA Exemptions Might Apply. Even though the scope of FARA’s exemptions might not always be clear, a nonprofit should understand which exemptions may apply to its activities.  For example, a nonprofit that registers only for itself under the U.S. Lobbying Disclosure Act would likely not be able to avail itself of the LDA Exemption to cover its relationships with foreign funders.  Nonprofits should also be aware that important exemptions, such as the Religious, Scholastic, Academic, Scientific, or Fine Arts Exemption, are unavailable if any “political activities” occur, so some projects that qualify for these exemptions need to be closely monitored for compliance.
• Review State “Baby FARA” Laws If Your Organization is Active in Relevant States. Nonprofits that are active in states that have passed “baby FARA” laws should review and understand the contours of those laws, particularly if they have interactions with individuals and entities related to nations that are adversarial to the United States (e.g. China, Cuba, Iran, North Korea, Russia, Venezuela). 
• Work with Counsel to Establish a FARA Compliance Framework. Compliance frameworks can help nonprofits continue their important work while still accounting for FARA-related risk.  Work with experienced legal counsel who can provide clear guardrails that allow your organization’s personnel to get their jobs done confidently and efficiently in a manner that reduces potential FARA exposure.   

This post is intended for informational purposes only and does not constitute legal advice.

For more information regarding FARA, please contact us using our online form.