,,ii  #aafth ,,congress  #ast ,session  
,s4 #bgef  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,october #ca1  
#bjai,mr4 ,gardner 7for himself and ,mr4
 ,peters7 introduced the following bill2
 which was read twice and referred to   
the ,committee on ,finance  ,a ,,bill   
,to amend the ,internal ,revenue ,code  
of #aihf to facilitate program-related  
investments by private foundations4  #a4
 ,short title2 table of contents  7a7   
,short title ,this ,act may be cited as 
the ,philanthropic ,facilitation ,act4  
7b7 ,table of contents ,the table of    
contents for this ,act is as follows3   
,sec4 #a4 ,short title2 table of        
contents4,sec4 #b4 ,facilitation of     
program-related investments4,sec4 #c4   
,declaratory judgment remedy4,sec4 #d4  
,information returns4,sec4 #e4          
,publicity of information4,sec4 #f4     
,conforming amendments4,sec4 #g4        
,regulations4,sec4 #h4 ,effective date4 
#b4 ,facilitation of program-related    
investments ,subsection 7c7 of section  

#didd of the ,internal ,revenue ,code of
 #aihf is amended to read as follows3   
7c7 ,program related investments  7#a7  
,treatment of program related           
investments ,for purposes of this       
subchapter1 program-related             
investments--  7,a7 are not investments 
which jeopardize the carrying out of one
 or more purposes described in section  
#agj7;c77#b77;,b71  7,b7 are not        
business holdings under section #didc1  
and  7,c7 may be qualifying             
distributions under section #didb4  7#b7
 ,program-related investments defined   
7,a7 ,in general ,for purposes of this  
subchapter and chapter #fa1 an          
investment made by a private foundation 
constitutes a program-related investment
 if--  7i7 the primary purpose of the   
investment is to accomplish one or more 
of the purposes described in section    
#agj7;c77#b77;,b71  7ii7 no significant 
purpose of the investment is the        
production of income or the appreciation
 of property1 and  7iii7 no purpose of  

the investment is to accomplish one or  
more of the purposes described in       
section #agj7;c77#b77;,d74  7,b7        
,special rules ,for purposes of         
subparagraph 7,a7-- 7i7 determinations  
of whether an investment qualifies as a 
program-related investment shall be     
based on consideration of all relevant  
facts and circumstances1 and  7ii7 the  
fact that the entity produces           
significant income or capital           
appreciation shall not1 in the absence  
of other factors1 be conclusive evidence
 of a significant purpose involving the 
production of income or the appreciation
 of property4  7#c7 ,safe harbor        
determinations ,the ,secretary shall    
establish a procedure which shall be    
substantially similar to the processes  
for recognition of exemption under      
section #eja7;a7 or #dide7;g7 and under 
which an entity seeking to receive      
program-related investments may petition
 the ,secretary for a determination     
that1 based on consideration of all     

relevant facts and circumstances1       
investments by private foundations in   
such entity will be program-related     
investments meeting the requirements of 
paragraph 7#b74 ,under this procedure1  
the ,secretary shall rule on all        
requests within #abj days of submission4
  7#d7 ,effect of determination ,once a 
determination has been made that        
investments in an entity qualify as     
program-related investments1            
organizations making such investments   
shall be entitled to rely on the        
determination1 unless and until the     
,secretary publishes notice of          
revocation of the determination4  7#e7  
,voluntary nature of process ,entities  
seeking program-related investments are 
not required to seek a determination    
under paragraph 7#c71 and the absence of
 such a determination shall not affect  
the ability of a private foundation to  
make a program-related investment based 
on its own determination that the       
investment qualifies as a               

program-related investment4  7#f7       
,organizations treated as private       
foundations ,for purposes of this       
subsection and section #fajd;,a1 all    
references to private foundations       
include organizations that are treated  
as private foundations under any of the 
provisions of sections #didj through    
#didh1 inclusive1 whether created under 
,state law or the law of any federally  
recognized tribe4  4  #c4 ,declaratory  
judgment remedy ,paragraph 7#a7 of      
section #gdbh7;a7 of the ,internal      
,revenue ,code of #aihf is amended by   
striking or at the end of subparagraph  
7,d7 and by adding after subparagraph   
7,e7 the following new subparagraph3    
7,f7 with respect to whether investments
 in an entity are program-related       
investments 7as described in section    
#didd7;c77#b771 or  4  #d4 ,information 
returns ,part ,,iii of subchapter ,a of 
chapter #fa of the ,internal ,revenue   
,code of #aihf is amended by inserting  
after section #fjcc the following new   

section3  #fjcc;,a4 ,information        
reporting by for-profit organizations   
receiving program-related investments   
7a7 ,organizations required ,to file ,if
 investments in an entity have been     
determined to be program-related        
investments through a determination of  
the ,internal ,revenue ,service pursuant
 to section #didd7;c77#c7 or by a       
determination of a court pursuant to    
section #gdbh7;a71 the entity shall1 in 
addition to any other applicable filing 
obligations1 file an annual return      
providing the information specified in  
subsection 7b7 for any taxable year in  
which it receives or retains one or more
 program-related investments 7as defined
 in section #didd7;c77#b774  7b7        
,required reporting ,the return         
described in subsection 7a7 shall       
provide1 in such manner and at such time
 as the ,secretary may by forms or      
regulations prescribe1 the following    
information--  7#a7 the organization's  
gross income for the year1  7#b7 its    

expenses attributable to such income    
incurred within the year1  7#c7 its     
disbursements within the year for one or
 more purposes described in section     
#agj7;c77#b77;,b71 together with a      
narrative statement describing the      
results obtained from the use of those  
assets for such one or more purposes    
described in section #agj7;c77#b77;,b71 
7#d7 a balance sheet showing its assets1
 liabilities1 and net worth as of the   
beginning and end of such year1  7#e7   
the names and addresses of all private  
foundations holding program-related     
investments in the organization1  7#f7 a
 statement of the portion of its        
liabilities and net worth that represent
 capitalization obtained by means of    
program-related investments as of the   
beginning and end of such year1  7#g7 a 
statement of any interest1 dividends1 or
 other distributions paid with respect  
to any program-related investments      
during the year1 and  7#h7 such other   
information as may be necessary for the 

return described in subsection 7a7 to   
satisfy the annual financial reporting  
required by the expenditure             
responsibility rules pursuant to the    
regulations under section #dide or as   
the ,secretary may by forms or          
regulations prescribe4  4  #e4          
,publicity of information ,subchapter ,b
 of chapter #fa of the ,internal        
,revenue ,code of #aihf is amended by   
inserting after section #fajd the       
following new section3  #fajd;,a4       
,publicity of information regarding     
organizations receiving program-related 
investments  7a7 ,inspection of         
petitions for determination of          
program-,related investment status ,if  
an entity seeks a determination pursuant
 to section #didd7;c77#c7 that          
investments by private foundations in   
such organization will be               
program-related investments1 the        
petition seeking such a determination1  
together with any documents submitted in
 support of such petition and any       

determination or other document issued  
by the ,internal ,revenue ,service with 
respect to such petition1 shall be open 
to public inspection at the national    
office of the ,internal ,revenue        
,service4  7b7 ,inspection of annual    
information returns ,the information    
required to be furnished by section     
#fjcc;,a1 together with the names and   
addresses of such entity1 shall be made 
available to the public at such times   
and in such places as the ,secretary may
 prescribe4  7c7 ,public inspection of  
petitions and annual information returns
 ,any entity that receives a            
determination from the ,internal        
,revenue ,service that private          
foundation investments shall be         
program-related investments pursuant to 
section #didd7;c77#c7 shall make copies 
available at the organization's         
principal office1 during regular        
business hours1 of the petition for such
 determination 7together with supporting
 materials provided with the petition   

and documents issued by the ,internal   
,revenue ,service with respect to such  
petition71 as well as the annual returns
 required by section #fjcc;,a filed by  
such organization4 ,upon request of an  
individual made at such principal       
office1 copies of such petition         
materials and annual reports shall be   
provided to such individual without     
charge other than a reasonable fee for  
any reproduction and mailing costs4 ,the
 inspection and duplication rights      
granted in this subsection shall apply  
to an annual return only during the     
three-year period beginning on the last 
day prescribed for filing such return   
7determined with regard to any extension
 of time for filing74  7d7 ,limitation  
on providing copies ,paragraph 7c7 shall
 not apply to any request if1 in        
accordance with regulations promulgated 
by the ,secretary1 the entity has made  
the requested documents widely          
available1 or the ,secretary determines1
 upon application by an entity1 that    

such request is part of a harassment    
campaign and that compliance with such  
request is not in the public interest4  
4  #f4 ,conforming amendments  7a7      
,conforming change to section #eja7n7   
,paragraph 7#d77;,a7 of section #eja7n7 
of the ,internal ,revenue ,code of #aihf
 is amended by inserting paragraph 7#b7 
of before section #didd7;c74  7b7       
,conforming changes to section #ead     
,section #ead of the ,internal ,revenue 
,code of #aihf is amended--  7#a7 in    
subsection 7b7-- 7,a7 in paragraph 7#a71
 by redesignating subparagraphs 7,d7 and
 7,e7 as subparagraphs 7,e7 and 7,f71   
respectively1 and by inserting after    
subparagraph 7,c7 the following new     
subparagraph3  7,d7 any property owned  
or treated as owned by a private        
foundation by virtue of its having made 
an investment in an entity that has     
received a determination from the       
,internal ,revenue ,service pursuant to 
section #didd7;c77#c71 or by a court    
pursuant to section #gdbh7;a71 that such

 investments in such entity qualify as  
program-related investments2  1 and     
7,b7 in paragraph 7#b71 by striking 7,d7
 and inserting 7,e71 and  7#b7 in       
subsection 7e71 by striking 7,d7 and    
inserting 7,e74  7c7 ,conforming change 
to section #didc7;d7 ,paragraph 7#c7 of 
section #didc7;d7 of the ,internal      
,revenue ,code of #aihf is amended--    
7#a7 by striking or at the end of       
subparagraph 7,a71  7#b7 by             
redesignating subparagraph 7,b7 as      
subparagraph 7,c71  7#c7 by inserting   
after subparagraph 7,a7 the following   
new subparagraph3  7,b7 any             
program-related investment1 as defined  
in section #didd7;c77#b71 or  1 and     
7#d7 by striking subparagraph 7,b7 and  
inserting subparagraph 7,c74  #g4       
,regulations ,the ,secretary of the     
,treasury shall1 not later than #a year 
after the date of the enactment of this 
,act1 amend any applicable regulations  
as may be necessary or appropriate to   
implement any amendments contained in   

this ,act or to carry out the purposes  
of this ,act1 including providing       
additional examples of qualifying       
program-related investments4  #h4       
,effective date ,the amendments made by 
this ,act shall apply to investments    
made after the date of the enactment of 
this ,act in taxable years ending after 
such date4