,,ii  #aag? ,,congress  #a/ ,session    
,s4 #aiha  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #i1 #bjba,mr4 ,k+
 7= himself & ,mr4 ,grassley7 introduc$ 
! foll[+ bill2 :i* 0 read twice & ref]r$
 to ! ,committee on ,f9ance  ,a ,,bill  
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to modify rules relat+ to donor   
advis$ funds1 & = o!r purposes4  #a4    
,%ort title ,?is ,act may be cit$ z !   
,accel]at+ ,*>itable ,ef=ts ,act or !   
,,ace ,act4  #b4 ,additional re/rictions
 on d$uctions = contributions to donor  
advis$ funds  7a7 ,limitation on        
d$uction ,section #agj7;f7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new p>agraph3  7#ai7  
,"t = d$uction ( contributions to donor 
advis$ funds  7,a7 ,nonqualifi$ donor   
advis$ funds  7i7 ,9 g5]al ,9 ! case ( a
 contribution to a donor advis$ fund 7z 
def9$ 9 section #diff7;d77#b77 :i* is n 
a qualifi$ donor advis$ fund or a       
qualifi$ community f\ndation donor      
advis$ fund-- 7,i7 9 ! case ( any       

contribution ( prop]ty o!r ?an ca%1 no  
d$uction %all be all[$ "u ?is section   
unless ! sponsor+ organization sells su*
 prop]ty = ca%1  7,,ii7 no d$uction %all
 be all[$ "u ?is section = any          
contribution be=e ! taxable ye> t       
includes ! date on :i* ! sponsor+       
organization makes a qualify+           
di/ribution ( su* contribution 7or !    
proce$s f ! sale ( su* contribution71 & 
7,,iii7 ! am\nt ( ! d$uction %all be    
equal to ! am\nt ( ! qualify+           
di/ribution4  7ii7 ,qualify+ di/ribution
 ,= purposes ( ?is subp>agraph1 ! t]m   
qualify+ di/ribution means any          
di/ribution :i* is n a taxable          
di/ribution 7z def9$ 9 section          
#diff7;c71 det]m9$ )\t reg>d to p>agraph
 7#b77;,c7 !re(74  7iii7 ,ord]+ rule ,= 
purposes ( ?is subp>agraph1 di/ributions
 %all be treat$ z made f contributions  
7& any e>n+s attributable !reto7 on a   
fir/-91 fir/-out basis4  7,b7           
,nonpublicly trad$ assets ( qualifi$    
donor advis$ funds  7i7 ,9 g5]al ,9 !   

case ( a contribution ( a non-publicly  
trad$ asset to a qualifi$ donor advis$  
fund or a qualifi$ community f\ndation  
donor advis$ fund-- 7,i7 no d$uction    
%all be all[$ "u ?is section = any      
taxable ye> be=e ! taxable ye> t        
includes ! date on :i* ! sponsor+       
organization sells ! asset1 &  7,,ii7 ! 
am\nt ( ! d$uction all[$ "u subsection  
7a7 %all n exce$ ! am\nt ( gross proce$s
 receiv$ f su* sale & cr$it$ to ! acc\nt
 or fund id5tifi$ ) ! taxpay]4  7ii7    
,non-publicly trad$ asset ,= purposes ( 
?is subp>agraph1 ! t]m non-publicly     
trad$ asset means any asset = :i* 7z ( !
 date ( ! contribution7 m>ket quotations
 are n readily available on an e/abli%$ 
securities m>ket4  7,c7 ,contemporane\s 
writt5 ackn[l$gem5t  7i7 ,9 g5]al ,9 !  
case ( a contribution describ$ 9        
subp>agraph 7,a7 or 7,b71 no d$uction   
%all be all[$ "u subsection 7a7 = su*   
contribution unless ! taxpay]           
sub/antiates ! contribution by a        
contemporane\s writt5 ackn[l$gem5t ( !  

contribution by ! sponsor+ organization 
t meets ! requirem5ts ( clause 7ii74    
7ii7 ,cont5t ( ackn[l$gem5t ,an         
ackn[l$gem5t meets ! requirem5ts ( ?is  
subp>agraph if x includes ! foll[+      
in=mation3 7,i7 ,! "n ( ! donor4  7,,ii7
 ,9 ! case ( a contribution describ$ 9  
subp>agraph 7,a7-- 7aa7 if su*          
contribution is describ$ 9 subp>agraph  
7,a77i77,i71 a c]tification t ! asset 0 
sold = ca% & ! am\nt ( ca% receiv$ 9 su*
 sale1 &  7bb7 a c]tification t a       
qualify+ di/ribution has be5 made f su* 
contribution 7or ! proce$s f ! sale (   
su* contribution71 an id5tification ( ! 
am\nt ( su* qualify+ di/ribution1 & a   
/atem5t t ! d$uctible am\nt may n exce$ 
! am\nt ( su* qualify+ di/ribution4     
7,,iii7 ,9 ! case ( a contribution      
describ$ 9 subp>agraph 7,b71 a          
c]tification t ! asset 0 sold & ! am\nt 
( ! gross proce$s receiv$ f su* sale &  
cr$it$ to ! acc\nt or fund ( ! taxpay]1 
toge!r ) a /atem5t t ! d$uctible am\nt  
may n exce$ ! am\nt ( ! gross proce$s   

receiv$ f ! sale ( ! asset & cr$it$ to !
 acc\nt or fund ( ! taxpay]4  7iii7     
,contemporane\s ,= purposes ( clause    
7i71 an ackn[l$gem5t %all be consid]$ to
 be contemporane\s if ! sponsor+        
organization provides x )9 #cj days (-- 
7,i7 9 ! case ( a contribution describ$ 
9 subp>agraph 7,a71 ! date ( ! qualify+ 
di/ribution1 &  7,,ii7 9 ! case ( a     
contribution describ$ 9 subp>agraph     
7,b71 ! date t ! gross proce$s f ! sale 
( ! asset are cr$it$ to ! acc\nt or fund
 ( ! taxpay]4  7iv7 ,in=mation to       
,secret>y ,a sponsor+ organization      
requir$ to provide an ackn[l$gem5t "u   
?is p>agraph %all provide to ! ,secret>y
 ! in=mation conta9$ 9 ! ackn[l$gem5t4  
,su* in=mation %all be provid$ at su* "t
 & 9 su* mann] z ! ,secret>y may        
prescribe4  7,d7 ,qualifi$ donor advis$ 
fund ,= purposes ( ?is p>agraph1 ! t]m  
qualifi$ donor advis$ fund means a donor
 advis$ fund 7z def9$ 9 section         
#diff7;d77#b77 e/abli%$ "u an agreem5t t
 requires1 = ! duration ( su* fund1 !   

t]m9ation ( any advisory privilege )    
respect to any contribution 7includ+ any
 e>n+s !reon7 made by any donor 7or any 
p]son appo9t$ or designat$ by a donor7  
be=e ! la/ day ( ! #ad? taxable ye>     
beg9n+ aft] ! taxable ye> 9 :i* !       
contribution 0 made4  7,e7 ,qualifi$    
community f\ndation donor advis$ fund ,=
 purposes ( ?is p>agraph-- 7i7 ,9 g5]al 
,! t]m qualifi$ community f\ndation     
donor advis$ fund means a donor advis$  
fund 7z def9$ 9 section #diff7;d77#b77  
:i* is own$ or controll$ by a qualifi$  
community f\ndation & :i* meets "o or m 
( ! requirem5ts ( clauses 7ii7 or 7iii74
  7ii7 ,maximum value ( advisory        
privileges  7,i7 ,9 g5]al ,a donor      
advis$ fund meets ! requirem5ts ( ?is   
clause if ea* individual :o has advisory
 privileges ) respect to su* fund does n
 h advisory privileges ) respect to #a  
or m donor advis$ funds held by !       
qualifi$ community f\ndation ) an       
aggregate value at any "t aft] ! date ( 
! enactm5t ( ?is p>agraph 9 excess (    

#a1jjj1jjj4  7,,ii7 ,inflation adju/m5t 
,9 ! case ( any taxable ye> beg9n+ aft] 
#bjba1 ! #a1jjj1jjj am\nt 9 subclause   
7,i7 %all be increas$ by an am\nt equal 
to su* doll> am\nt multipli$ by !       
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       
taxable ye> beg9s1 det]m9$ by sub/itut+ 
9 subp>agraph 7,a77ii7 !re( cal5d> ye>  
#bjbj = cal5d> ye> #bjaf4 ,if any am\nt 
z adju/$ "u ! prec$+ s5t5ce is n a      
multiple ( #aj1jjj1 su* doll> am\nt %all
 be r\nd$ to ! next l[e/ multiple (     
#aj1jjj4  7iii7 ,m9imum pay\t ,a donor  
advis$ fund meets ! requirem5ts ( ?is   
p>agraph if ! fund is e/abli%$ "u an    
agreem5t t requires t ! fund make       
qualify+ di/ributions 7z def9$ 9        
subp>agraph 7,a77ii77 ea* cal5d> ye> 9  
an am\nt n less ?an #e p]c5t ( ! value (
 ! fund 7det]m9$ z ( ! la/ day ( !      
prec$+ cal5d> ye>74  7iv7 ,qualifi$     
community f\ndation ,! t]m qualifi$     
community f\ndation means an            
organization-- 7,i7 :i* is describ$ 9   

section #eja7;c77#c71  7,,ii7 :i* is    
organiz$ & op]at$ = ! purpose ( und]/&+ 
& s]v+ ! ne$s ( a p>ticul> geographic   
community t is no l>g] ?an #d ,/ates by 
engag+ donors & pool+ donations to      
create *>itable funds 9 direct fur!rance
 ( ^? ne$s1 &  7,,iii7 :i* holds        
sub/antial assets 7b 9 no case less ?an 
#be p]c5t ( ! organization's total      
assets7 outside ( donor advis$ funds4   
7v7 ,sponsor+ organization ,! t]m       
sponsor+ organization has ! mean+ giv5  
su* t]m "u section #diff7;d77#a74  4    
7b7 ,o!r requirem5ts = qualifi$ donor   
advis$ funds ,section #agj7;f77#ah7 ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ & at ! end ( subp>agraph       
7,a77ii71 by /rik+ ! p]iod at ! end (   
subp>agraph 7,b7 & ins]t+ 1 &1 & by add+
 at ! end ! foll[+ new subp>agraph3     
7,c7 9 ! case ( a contribution to a     
qualifi$ donor advis$ fund 7z def9$ 9   
p>agraph 7#ai77;,d771 ! taxpay]         
id5tifies = ! sponsor+ organization a   
pref]r$ organization = ! purposes ( mak+

 di/ributions ( s mu* ( ! am\nt         
contribut$ 7& any e>n+s attributable    
!reto7 z has n be5 di/ribut$ be=e ! end 
( ! la/ day ( ! #ad? taxable ye> beg9n+ 
aft] ! taxable ye> 9 :i* ! contribution 
0 made4  4  7c7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
to contributions made aft] ! date ( !   
enactm5t ( ?is ,act4  #c4 ,failure (    
donor advis$ funds to di/ribute         
contributions  7a7 ,9 g5]al ,sub*apt] ,g
 ( *apt] #db ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+ new section3  #difg;,a4 ,failure 
( donor advis$ funds to di/ribute       
contributions  7a7 ,9 g5]al ,9 ! case ( 
a contribution :i* is held 9 a donor    
advis$ fund 7o!r ?an a qualifi$         
community f\ndation donor advis$ fund71 
!re is h]eby impos$ a tax equal to #ej  
p]c5t ( s mu* ( ! portion ( su*         
contribution 7& any e>n+s attributable  
!reto7 z has n be5 di/ribut$ by !       
sponsor+ organization 9 a qualify+      
di/ribution be=e ! la/ day ( ! six? mon?

 foll[+ ! la/ day ( ! applicable taxable
 ye> ) respect to su* contribution4 ,!  
tax impos$ by ?is subsection %all be    
paid by su* sponsor+ organization4  7b7 
,applicable taxable ye> ,= purposes (   
?is section1 ! t]m applicable taxable   
ye> means-- 7#a7 9 ! case ( a           
contribution to a qualifi$ donor advis$ 
fund1 ! #ad? taxable ye> beg9n+ aft] !  
taxable ye> 9 :i* ! contribution 0 made1
 &  7#b7 9 ! case ( a contribution to   
any o!r donor advis$ fund 7o!r ?an a    
qualifi$ community f\ndation donor      
advis$ fund71 ! #di? taxable ye> beg9n+ 
aft] ! taxable ye> 9 :i* ! contribution 
0 made4  7c7 ,def9itions & o!r rules    
7#a7 ,qualifi$ donor advis$ fund ,! t]m 
qualifi$ donor advis$ fund has ! mean+  
giv5 su* t]m "u section                 
#agj7;f77#ai77;,d74  7#b7 ,qualifi$     
community f\ndation donor advis$ fund ,!
 t]m qualifi$ community f\ndation donor 
advis$ fund has ! mean+ giv5 su* t]m "u 
section #agj7;f77#ai77;,e74  7#c7       
,qualify+ di/ribution ,! t]m qualify+   

di/ribution has ! mean+ giv5 su* t]m "u 
section #agj7;f77#ai77;,a77ii74  7#d7   
,ord]+ rule ,rules simil> to ! rules (  
section #agj7;f77#ai77;,a77iii7 %all    
apply = purposes ( ?is section4  4  7b7 
,con=m+ am5dm5t ,! table ( sections =   
sub*apt] ,g ( *apt] #db ( su* ,code is  
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sec4 #difg;,a4 ,failure ( donor 
advis$ funds to di/ribute contributions4
  4  7c7 ,effective date ,! am5dm5ts    
made by ?is section %all apply to       
contributions made aft] ! date ( !      
enactm5t ( ?is ,act4  #d4 ,treatm5t (   
private f\ndation adm9i/rative exp5ses  
paid to disqualifi$ p]sons  7a7 ,9 g5]al
 ,section #didb7;g7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by add+ at ! end
 ! foll[+ new p>agraph3  7#e7           
,disall[ance ( adm9i/rative exp5ses paid
 to disqualifi$ p]sons  7,a7 ,9 g5]al ,=
 purposes ( p>agraph 7#a77;,a71         
adm9i/rative exp5ses paid to any p]son  
describ$ 9 subp>agraph 7,b7 %all n be   
treat$ z a qualify+ di/ribution4  7,b7  

,p]son describ$ ,a p]son is describ$ 9  
?is subp>agraph if su* p]son is a       
disqualifi$ p]son 7z def9$ 9 section    
#didf7;a77#a77 ) respect to ! private   
f\ndation1 o!r ?an a f\ndation manag] 7z
 def9$ 9 section #didf7;b77#a77 ( su*   
private f\ndation :o is n a memb] ( !   
family 7z def9$ 9 section #didf7;d77 (  
any individual describ$ 9 subp>agraph   
7,a7 or 7,c7 ( section #didf7;a77#a74  4
  7b7 ,effective date ,! am5dm5t made by
 ?is section %all apply to taxable ye>s 
beg9n+ aft] ,decemb] #ca1 #bjba4  #e4   
,treatm5t ( di/ributions to donor advis$
 funds f private f\ndations  7a7        
,prohibition on treatm5t z qualify+     
di/ributions  7#a7 ,9 g5]al ,section    
#didb7;g77#a77;,a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ p>agraph
 7#c71 or & ins]t+ p>agraph 7#c71 or    
7iii7 a sponsor+ organization 7z def9$ 9
 section #diff7;d77#a77 if su*          
contribution w be held 9 a donor advis$ 
fund 7z def9$ 9 section #diff7;d77#b771 
except z provid$ 9 p>agraph 7#c71 or4   

7#b7 ,con=m+ am5dm5t ,section           
#didb7;g77#c7 is am5d$ by /rik+ 7i7 or  
7ii7 & ins]t+ 7i71 7ii71 or 7iii74  7b7 
,report+ ,section #fjcc7;c7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$-- 7#a7  
by r$esignat+ p>agraphs 7#a7 & 7#b7 z   
p>agraphs 7#b7 & 7#c71 respectively1    
7#b7 by ins]t+ be=e p>agraph 7#b7 7z    
r$esignat$7 ! foll[+ new p>agraph3  7#a7
 ! private f\ndation %all include 9 its 
annual return "u ?is section in=mation  
on-- 7,a7 ! am\nt ( any contribution to 
a sponsor+ organization 7z def9$ 9      
section #diff7;d77#a77 :i* w be held 9 a
 donor advis$ fund 7z def9$ 9 section   
#diff7;d77#b771  7,b7 ! sponsor+        
organization to :i* su* contribution 0  
made1 &  7,c7 ! donation advice giv5 to 
su* organization 7if any71  1 &  7#c7 9 
! matt] foll[+ p>agraph 7#c7 7z         
r$esignat$7 by /rik+ p>agraph 7#a7 &    
ins]t+ p>agraph 7#b74  7c7 ,effective   
dates  7#a7 ,prohibition ,! am5dm5t made
 by subsection 7a7 %all apply to        
di/ributions made aft] ,decemb] #ca1    

#bjba4  7#b7 ,report+ ,! am5dm5ts made  
by subsection 7b7 %all apply to returns 
requir$ to be fil$ aft] ,decemb] #ca1   
#bjba4  #f4 ,treatm5t ( contributions f 
donor advis$ funds = purposes ( det]m9+ 
public support  7a7 ,private f\ndations 
,section #eji ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new subsection3  7g7 ,special    
rules = support f donor advis$ funds    
7#a7 ,9 g5]al ,= purposes ( subsection  
7a77#b71 except z o!rwise provid$ 9 ?is 
subsection1 all am\nts receiv$ f        
sponsor+ organizations 7z def9$ 9       
section #diff7;d77#a77-- 7,a7 %all n be 
treat$ z support receiv$ f an           
organization describ$ 9 section         
#agj7;b77#a77;,a71 &  7,b7 %all be      
treat$ z support receiv$ f "o p]son4    
7#b7 ,exception :]e donor id5tifi$ ,9 ! 
case ( support f a sponsor+ organization
 :i* is provid$ f funds :i* are id5tifi$
 ) a donor to a donor advis$ fund 7z    
def9$ 9 section #diff7;d77#b77 & !      
sponsor+ organization id5tifies su*     

donor1 su* support %all be treat$ z     
provid$ by su* donor4  7#c7 ,exception =
 am\nts n contribut$ f donor advis$     
funds ,p>agraph 7#a7 %all n apply to any
 am\nt if ! sponsor+ organization       
specifies t-- 7,a7 ! am\nt is n a       
di/ribution f a donor advis$ fund 7z s  
def9$71 &  7,b7 no donor 7or any p]son  
appo9t$ or designat$ by su* donor7 _h   
advisory privileges ) respect to !      
provision ( ! support4  4  7b7          
,det]m9ation ( contribution limitations 
,section #agj7;b77#a77;,a7 ( su* ,code  
is am5d$ by add+ at ! end ! foll[+3 ,=  
purposes ( clause 7vi71 rules simil> to 
! rules ( section #eji7;g7 %all apply44 
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to contributions 
made 9 taxable ye>s beg9n+ aft] ! date (
 ! enactm5t ( ?is ,act4  #g4 ,exemption 
f tax on inve/m5t income = c]ta9 private
 f\ndations mak+ significant qualify+   
di/ributions  7a7 ,9 g5]al ,section     
#didj ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by add+ at ! end ! foll[+ new 

subsection3  7e7 ,exemption = f\ndations
 mak+ significant qualify+ di/ributions 
,no tax %all be impos$ by ?is section = 
any taxable ye> on any private f\ndation
 if su* private f\ndation makes qualify+
 di/ributions 7z def9$ 9 section        
#didb7;g77 dur+ su* taxable ye> 9 an    
am\nt t is n less ?an #g p]c5t ( !      
excess (-- 7#a7 ! aggregate fair m>ket  
value ( all assets ( ! f\ndation 7o!r   
?an ^? :i* are us$ 7or held = use7      
directly 9 c>ry+ out ! f\ndation's      
exempt purpose7 det]m9$ z ( ! fir/ date 
( ! taxable ye>1 ov]  7#b7 ! acquisition
 indebt$ness ) respect to su* assets    
7det]m9$ "u section #ead7;c77#a774  4   
7b7 ,effective date ,! am5dm5t made by  
?is section %all apply to taxable ye>s  
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #h4 ,exemption f tax on inve/m5t 
income ( limit$-duration private        
f\ndations  7a7 ,9 g5]al ,section #didj 
( ! ,int]nal ,rev5ue ,code ( #aihf1 z   
am5d$ by section #g1 is am5d$ by add+ at
 ! end ! foll[+ new subsection3  7f7    

,exemption = limit$-,duration f\ndations
  7#a7 ,exemption  7,a7 ,9 g5]al ,no tax
 %all be impos$ by subsection 7a7 on any
 private f\ndation if su* private       
f\ndation meets ! requirem5ts (         
subp>agraph 7,b74  7,b7 ,requirem5ts ,a 
private f\ndation meets ! requirem5ts ( 
?is subp>agraph if1 at ! "t ( its       
e/abli%m5t & at all times !reaft]-- 7i7 
su* private f\ndation has a duration    
specifi$ 9 its gov]n+ docum5ts ( n m ?an
 #be ye>s1 &  7ii7 su* private f\ndation
 makes no di/ributions to disqualifi$   
private f\ndations4  7,c7 ,disqualifi$  
private f\ndation ,= purposes ( ?is     
subsection1 ! t]m disqualifi$ private   
f\ndation means1 ) respect to ! private 
f\ndation describ$ 9 subp>agraph 7,b71  
ano!r private f\ndation ) respect to :i*
 !re is a disqualifi$ p]son :o is also a
 disqualifi$ p]son ) respect to su*     
private f\ndation describ$ 9 subp>agraph
 7,b74  7#b7 ,recapture tax  7,a7 ,9    
g5]al ,if-- 7i7 no tax is impos$ "u     
subsection 7a7 on a private f\ndation by

 reason ( p>agraph 7#a71 &  7ii7 su*    
private f\ndation-- 7,i7 fails to meet !
 requirem5ts ( p>agraph 7#a77;,b7 9 any 
subsequ5t taxable ye>1  7,,ii7 has a    
duration ( m ?an #be ye>s1 or  7,,iii7  
makes a di/ribution to a disqualifi$    
private f\ndation1  a tax %all be impos$
 on su* f\ndation 9 ! am\nt det]m9$ "u  
subp>agraph 7,b7 = ! fir/ taxable ye> 9 
:i* su* private f\ndation is describ$ 9 
clause 7ii74  7,b7 ,am\nt ( tax ,! am\nt
 ( tax det]m9$ "u ?is subp>agraph is !  
aggregate am\nt ( taxes :i* w\ld h be5  
impos$ on su* private f\ndation = all   
taxable ye>s be=e ! fir/ taxable ye> 9  
:i* su* f\ndation 0 describ$ 9          
subp>agraph 7,a77ii7 if p>agraph 7#a7 _h
 n appli$4  4  7b7 ,effective date ,!   
am5dm5t made by ?is section %all apply  
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4