This legislation aims to hold nonprofit entities accountable for severe misconduct committed by their officers or members of the board of directors. It establishes clear penalties that are triggered if an individual serving in such a capacity is convicted of specific federal offenses , namely assault on a federal officer (18 U.S.C. § 111) or rioting (18 U.S.C. § 2101), provided the misconduct occurred while they were in their official role. Upon such a conviction, the nonprofit entity faces two significant consequences. First, it would be immediately ineligible to receive any Federal funds . Second, the entity would simultaneously lose its exemption from taxation under section 501 of the Internal Revenue Code of 1986, effective from the date of the conviction.