,,ii  #aad? ,,congress  #a/ ,session    
,s4 #bcac  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #ai1 #bjae,mr4
 ,g>dn] 7= himself & ,mr4 ,pet]s7       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to facilitate     
program-relat$ inve/m5ts by private     
f\ndations4  #a4 ,%ort title2 table (   
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,philan?ropic ,facilitation 
,act4  7b7 ,table ( cont5ts ,! table (  
cont5ts = ?is ,act is z foll[s3 ,sec4   
#a4 ,%ort title2 table ( cont5ts4,sec4  
#b4 ,facilitation ( program-relat$      
inve/m5ts4,sec4 #c4 ,decl>atory judgm5t 
rem$y4,sec4 #d4 ,in=mation returns4,sec4
 #e4 ,publicity ( in=mation4,sec4 #f4   
,con=m+ am5dm5ts4,sec4 #g4              
,regulations4,sec4 #h4 ,effective date4 
#b4 ,facilitation ( program-relat$      
inve/m5ts ,subsection 7c7 ( section     
#didd ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ to read z foll[s3  7c7        

,program relat$ inve/m5ts  7#a7         
,treatm5t ( program relat$ inve/m5ts ,= 
purposes ( ?is sub*apt]1 program-relat$ 
inve/m5ts--  7,a7 are n inve/m5ts :i*   
jeop>dize ! c>ry+ out ( "o or m purposes
 describ$ 9 section #agj7;c77#b77;,b71  
7,b7 are n bus9ess hold+s "u section    
#didc1 &  7,c7 may be qualify+          
di/ributions "u section #didb4  7#b7    
,program-relat$ inve/m5ts def9$  7,a7 ,9
 g5]al ,= purposes ( ?is sub*apt] &     
*apt] #fa1 an inve/m5t made by a private
 f\ndation con/itutes a program-relat$  
inve/m5t if--  7i7 ! prim>y purpose ( ! 
inve/m5t is to accompli% "o or m ( !    
purposes describ$ 9 section             
#agj7;c77#b77;,b71  7ii7 no significant 
purpose ( ! inve/m5t is ! production (  
income or ! appreciation ( prop]ty1 &   
7iii7 no purpose ( ! inve/m5t is to     
accompli% "o or m ( ! purposes describ$ 
9 section #agj7;c77#b77;,d74  7,b7      
,special rules ,= purposes ( subp>agraph
 7,a7-- 7i7 det]m9ations ( :e!r an      
inve/m5t qualifies z a program-relat$   

inve/m5t %all be bas$ on consid]ation ( 
all relevant facts & circum/ances1 &    
7ii7 ! fact t ! entity produces         
significant income or capital           
appreciation %all n1 9 ! abs5ce ( o!r   
factors1 be conclusive evid5ce ( a      
significant purpose involv+ ! production
 ( income or ! appreciation ( prop]ty4  
7#c7 ,safe h>bor det]m9ations ,!        
,secret>y %all e/abli% a proc$ure :i*   
%all be sub/antially simil> to !        
processes = recognition ( exemption "u  
section #eja7;a7 or #dide7;g7 & "u :i*  
an entity seek+ to receive              
program-relat$ inve/m5ts may petition ! 
,secret>y = a det]m9ation t1 bas$ on    
consid]ation ( all relevant facts &     
circum/ances1 inve/m5ts by private      
f\ndations 9 su* entity w be            
program-relat$ inve/m5ts meet+ !        
requirem5ts ( p>agraph 7#b74 ,"u ?is    
proc$ure1 ! ,secret>y %all rule on all  
reque/s )9 #abj days ( submission4  7#d7
 ,effect ( det]m9ation ,once a          
det]m9ation has be5 made t inve/m5ts 9  

an entity qualify z program-relat$      
inve/m5ts1 organizations mak+ su*       
inve/m5ts %all be entitl$ to rely on !  
det]m9ation1 unless & until ! ,secret>y 
publi%es notice ( revocation ( !        
det]m9ation4  7#e7 ,volunt>y nature (   
process ,entities seek+ program-relat$  
inve/m5ts are n requir$ to seek a       
det]m9ation "u p>agraph 7#c71 & ! abs5ce
 ( su* a det]m9ation %all n affect !    
ability ( a private f\ndation to make a 
program-relat$ inve/m5t bas$ on its own 
det]m9ation t ! inve/m5t qualifies z a  
program-relat$ inve/m5t4  7#f7          
,organizations treat$ z private         
f\ndations ,= purposes ( ?is subsection 
& section #fajd;,a1 all ref]5ces to     
private f\ndations include organizations
 t are treat$ z private f\ndations "u   
any ( ! provisions ( sections #didj     
?r\gh #didh1 inclusive1 :e!r creat$ "u  
,/ate law or ! law ( any f$]ally        
recogniz$ tribe4  4  #c4 ,decl>atory    
judgm5t rem$y ,p>agraph 7#a7 ( section  
#gdbh7;a7 ( ! ,int]nal ,rev5ue ,code (  

#aihf is am5d$ by /rik+ or at ! end (   
subp>agraph 7,c7 & by add+ aft]         
subp>agraph 7,d7 ! foll[+ new           
subp>agraph3  7,e7 ) respect to :e!r    
inve/m5ts 9 an entity are program-relat$
 inve/m5ts 7z describ$ 9 section        
#didd7;c77#b771 or  4  #d4 ,in=mation   
returns ,"p ,,iii ( sub*apt] ,a ( *apt] 
#fa ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by ins]t+ aft] section #fjcc ! 
foll[+ new section3  #fjcc;,a4          
,in=mation report+ by =-pr(it           
organizations receiv+ program-relat$    
inve/m5ts  7a7 ,organizations requir$   
,to file ,if inve/m5ts 9 an entity h be5
 det]m9$ to be program-relat$ inve/m5ts 
?r\gh a det]m9ation ( ! ,int]nal ,rev5ue
 ,s]vice pursuant to section            
#didd7;c77#c7 or by a det]m9ation ( a   
c\rt pursuant to section #gdbh7;a71 !   
entity %all1 9 addition to any o!r      
applicable fil+ obligations1 file an    
annual return provid+ ! in=mation       
specifi$ 9 subsection 7b7 = any taxable 
ye> 9 :i* x receives or reta9s "o or m  

program-relat$ inve/m5ts 7z def9$ 9     
section #didd7;c77#b774  7b7 ,requir$   
report+ ,! return describ$ 9 subsection 
7a7 %all provide1 9 su* mann] & at su*  
"t z ! ,secret>y may by =ms or          
regulations prescribe1 ! foll[+         
in=mation--  7#a7 ! organization's gross
 income = ! ye>1  7#b7 its exp5ses      
attributable to su* income incurr$ )9 ! 
ye>1  7#c7 its disbursem5ts )9 ! ye> =  
"o or m purposes describ$ 9 section     
#agj7;c77#b77;,b71 toge!r ) a n>rative  
/atem5t describ+ ! results obta9$ f !   
use ( ^? assets = su* "o or m purposes  
describ$ 9 section #agj7;c77#b77;,b71   
7#d7 a balance %eet %[+ its assets1     
liabilities1 & net wor? z ( ! beg9n+ &  
end ( su* ye>1  7#e7 ! names & addresses
 ( all private f\ndations hold+         
program-relat$ inve/m5ts 9 !            
organization1  7#f7 a /atem5t ( !       
portion ( its liabilities & net wor? t  
repres5t capitalization obta9$ by means 
( program-relat$ inve/m5ts z ( ! beg9n+ 
& end ( su* ye>1  7#g7 a /atem5t ( any  

int]e/1 divid5ds1 or o!r di/ributions   
paid ) respect to any program-relat$    
inve/m5ts dur+ ! ye>1 &  7#h7 su* o!r   
in=mation z may be necess>y = ! return  
describ$ 9 subsection 7a7 to satisfy !  
annual f9ancial report+ requir$ by !    
exp5diture responsibility rules pursuant
 to ! regulations "u section #dide or z 
! ,secret>y may by =ms or regulations   
prescribe4  4  #e4 ,publicity (         
in=mation ,sub*apt] ,b ( *apt] #fa ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #fajd ! foll[+   
new section3  #fajd;,a4 ,publicity (    
in=mation reg>d+ organizations receiv+  
program-relat$ inve/m5ts  7a7           
,inspection ( petitions = det]m9ation ( 
program-,relat$ inve/m5t /atus ,if an   
entity seeks a det]m9ation pursuant to  
section #didd7;c77#c7 t inve/m5ts by    
private f\ndations 9 su* organization w 
be program-relat$ inve/m5ts1 ! petition 
seek+ su* a det]m9ation1 toge!r ) any   
docum5ts submitt$ 9 support ( su*       
petition & any det]m9ation or o!r       

docum5t issu$ by ! ,int]nal ,rev5ue     
,s]vice ) respect to su* petition1 %all 
be op5 to public inspection at !        
national (fice ( ! ,int]nal ,rev5ue     
,s]vice4  7b7 ,inspection ( annual      
in=mation returns ,! in=mation requir$  
to be furni%$ by section #fjcc;,a1      
toge!r ) ! names & addresses ( su*      
entity1 %all be made available to !     
public at su* times & 9 su* places z !  
,secret>y may prescribe4  7c7 ,public   
inspection ( petitions & annual         
in=mation returns ,any entity t receives
 a det]m9ation f ! ,int]nal ,rev5ue     
,s]vice t private f\ndation inve/m5ts   
%all be program-relat$ inve/m5ts        
pursuant to section #didd7;c77#c7 %all  
make copies available at !              
organization's pr9cipal (fice1 dur+     
regul> bus9ess h\rs1 ( ! petition = su* 
det]m9ation 7toge!r ) support+ mat]ials 
provid$ ) ! petition & docum5ts issu$ by
 ! ,int]nal ,rev5ue ,s]vice ) respect to
 su* petition71 z well z ! annual       
returns requir$ by section #fjcc;,a fil$

 by su* organization4 ,^u reque/ ( an   
individual made at su* pr9cipal (fice1  
copies ( su* petition mat]ials & annual 
reports %all be provid$ to su*          
individual )\t *>ge o!r ?an a reasonable
 fee = any reproduction & mail+ co/s4 ,!
 inspection & duplication rights grant$ 
9 ?is subsection %all apply to an annual
 return only dur+ ! ?ree-ye> p]iod      
beg9n+ on ! la/ day prescrib$ = fil+ su*
 return 7det]m9$ ) reg>d to any ext5sion
 ( "t = fil+74  7d7 ,limitation on      
provid+ copies ,p>agraph 7c7 %all n     
apply to any reque/ if1 9 accordance )  
regulations promulgat$ by ! ,secret>y1 !
 entity has made ! reque/$ docum5ts     
widely available1 or ! ,secret>y        
det]m9es1 ^u application by an entity1 t
 su* reque/ is "p ( a h>assm5t campaign 
& t compliance ) su* reque/ is n 9 !    
public int]e/4  4  #f4 ,con=m+ am5dm5ts 
7a7 ,con=m+ *ange to section #eja7n7    
,p>agraph 7#d77;,a7 ( section #eja7n7 ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by ins]t+ p>agraph 7#b7 ( be=e    

section #didd7;c74  7b7 ,con=m+ *ange to
 section #ead7;b7 ,p>agraph 7#a7 (      
section #ead7;b7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by r$esignat+    
subp>agraphs 7,d7 & 7,e7 z subp>agraphs 
7,e7 & 7,f7 & by ins]t+ aft] subp>agraph
 7,c7 ! foll[+ new subp>agraph3  7,d7   
any prop]ty own$ or treat$ z own$ by a  
private f\ndation by virtue ( its hav+  
made an inve/m5t 9 an entity t has      
receiv$ a det]m9ation f ! ,int]nal      
,rev5ue ,s]vice pursuant to section     
#didd7;c77#c71 or by a c\rt pursuant to 
section #gdbh7;a71 t su* inve/m5ts 9 su*
 entity qualify z program-relat$        
inve/m5ts2  4  7c7 ,con=m+ *ange to     
section #didc7;d7 ,p>agraph 7#c7 (      
section #didc7;d7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by /rik+ or at ! 
end ( subp>agraph 7,a71 by r$esignat+   
subp>agraph 7,b7 z subp>agraph 7,c7 & by
 ins]t+ aft] subp>agraph 7,a7 ! foll[+  
new subp>agraph3  7,b7 any              
program-relat$ inve/m5t1 z def9$ 9      
section #didd7;c77#b71 or  4  #g4       

,regulations ,! ,secret>y ( ! ,treasury 
%all1 n lat] ?an #a ye> aft] ! date ( ! 
enactm5t ( ?is ,act1 am5d any applicable
 regulations z may be necess>y or       
appropriate to implem5t any am5dm5ts    
conta9$ 9 ?is ,act or to c>ry out !     
purposes ( ?is ,act1 includ+ provid+    
additional examples ( qualify+          
program-relat$ inve/m5ts4  #h4          
,effective date ,! am5dm5ts made by ?is 
,act %all apply to inve/m5ts made aft] !
 date ( ! enactm5t ( ?is ,act 9 taxable 
ye>s end+ aft] su* date4