The "Safeguarding Charity Act" proposes to amend title 1 of the United States Code to clarify the definition of "Federal financial assistance." Specifically, it states that for tax-exempt organizations under sections 501(c) or 501(d) of the Internal Revenue Code, and for qualified retirement plans under section 401(a), an exemption from Federal income tax will not be treated as Federal financial assistance . This clarification applies to any Federal law, rule, or regulation, unless explicitly provided otherwise. The bill aims to ensure that these tax benefits do not inadvertently subject organizations to federal requirements or conditions typically associated with direct government funding or aid. Furthermore, a rule of construction specifies that this act does not imply tax exemptions were considered federal assistance prior to its enactment.