,i #aai? ,,congress #b;d ,session ,h4 ,r4 #igba ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #af1 #bjbf,mr4 ,smuck] introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to require report+ by c]ta9 *>itable organizations relat+ to fiscal sponsor%ip arrangem5ts1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,fiscal ,sponsor%ip ,transp>5cy ,act ( #bjbf4 #b4 ,treatm5t ( fiscal sponsor%ip arrangem5ts 7a7 ,report+ requirem5ts 7#a7 ,9 g5]al ,section #fjcc7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ & at ! end ( p>agraph 7#ae77;,b71 by r$esignat+ p>agraph 7#af7 z p>agraph 7#ag71 & by ins]t+ aft] p>agraph 7#ae7 ! foll[+ new p>agraph3 7#af7 ) respect to ea* fiscal sponsor%ip arrangem5t ( ! organization 9 effect dur+ ! taxable ye>-- 7,a7 ! "n ( ea* p>ty 7o!r ?an any individuals7 to su* arrangem5t1 7,b7 7i7 9 ! case ( a fiscal sponsor%ip arrangem5t describ$ 9 subsection 7p77#a77;,b77ii71 ! aggregate am\nts made available dur+ ! taxable ye> "u su* arrangem5t = ! specifically id5tifi$ project describ$ 9 su* subsection1 7ii7 9 ! case ( any o!r fiscal sponsor%ip arrangem5t1 ! aggregate am\nts transf]r$ dur+ ! taxable ye> "u su* arrangem5t to ! p]son on ^: behalf ! organization receives & adm9i/]s am\nts1 & 7iii7 a description ( ! activities to :i* ! am\nts s made available or transf]r$1 z ! case may be1 relate1 7,c7 ! "n ( an individual designat$ z ! pr9cipal (fic] manag+ su* fiscal sponsor%ip arrangem5t on behalf ( ! organization1 & 7,d7 ! date on :i* ! arrangem5t began &1 if applicable1 end$1 & 4 7#b7 ,fiscal sponsor%ip arrangem5t ,section #fjcc ( su* ,code is am5d$ by r$esignat+ subsection 7p7 z subsection 7q7 & by ins]t+ aft] subsection 7o7 ! foll[+ new subsection3 7p7 ,fiscal sponsor%ip arrangem5t 7#a7 ,9 g5]al ,= purposes ( ?is section1 ! t]m fiscal sponsor%ip arrangem5t means1 ) respect to an applicable organization1 an arrangem5t-- 7,a7 betwe5 ! organization & ano!r p]son t is n exempt f tax "u section #eja7;a71 7,b7 "u :i*-- 7i7 ! organization agrees = consid]ation to receive & adm9i/] am\nts on behalf ( su* o!r p]son1 or 7ii7 7,i7 ! organization publicly solicits am\nts = c>ry+ on a specifically id5tifi$ project t is repres5t$ z a means to fur!r an exempt purpose ( ! organization1 7,,ii7 ! organization agrees to receive & adm9i/] am\nts direct$ to su* project & make su* am\nts available = ! organization to c>ry out ! project 7less an am\nt specifi$ 9 ! arrangem5t to be us$ by ! organization = o!r purposes71 & 7,,iii7 ei!r ! organization or su* o!r p]son may t]m9ate ! arrangem5t1 & 7,c7 "u :i* ! organization reta9s discretion & control ov] su* am\nts to ensure su* am\nts are us$ to fur!r an exempt purpose ( ! organization4 7#b7 ,special rule = o!rwise disreg>d$ entities ,= purposes ( p>agraph 7#a71 any entity-- 7,a7 :i* is own$ 7directly or indirectly7 by ! organization1 & 7,b7 :i* w\ld 7b = ?is p>agraph7 be disreg>d$ z an entity sep>ate f its own]1 %all be treat$ z an entity t is sep>ate f its own] & t is n exempt f tax "u section #eja7;a74 7#c7 ,applicable organization ,= purposes ( ?is subsection1 ! t]m applicable organization means an organization to :i* subsection 7b7 applies1 o!r ?an-- 7,a7 a private f\ndation 7z def9$ 9 section #eji7;a771 or 7,b7 a donor advis$ fund 7z def9$ 9 section #diff7;d77#b774 4 7b7 ,no d$uction all[$ = contributions "u improp] conduit arrangem5t ,section #agj7;c7 ( su* ,code is am5d$ by add+ at ! end ! foll[+3 ,! t]m *>itable contribution %all n include any contribution or gift made "u an improp] conduit arrangem5t 7z def9$ 9 section #difj;,a7d77#b7744 7c7 ,taxes impos$ on improp] conduit arrangem5ts 7#a7 ,9 g5]al ,sub*apt] ,d ( *apt] #db ( su* ,code is am5d$ by add+ at ! end ! foll[+ new section3 #difj;,a4 ,taxes on improp] conduit arrangem5ts 7a7 ,initial taxes 7#a7 ,on ! organization ,9 ! case ( a specifi$ tax-exempt organization1 !re is h]eby impos$ on any am\nt transf]r$ pursuant to an improp] conduit arrangem5t a tax equal to #bj p]c5t ( ! am\nt !re(4 ,! tax impos$ by ?is p>agraph %all be paid by ! organization4 7#b7 ,on ! managem5t ,9 any case 9 :i* a tax is impos$ by p>agraph 7#a7 ) respect to a transf] pursuant to an improp] conduit arrangem5t1 !re is h]eby impos$ on ! agreem5t ( any organization manag] to ! mak+ ( su* transf]1 kn[+ su* arrangem5t is an improp] conduit arrangem5t1 a tax equal to #e p]c5t ( ! am\nt !re(1 unless su* agreem5t is n willful & is due to reasonable cause4 ,! tax impos$ by ?is p>agraph %all be paid by ! organization manag] :o agre$ to ! transf]4 7b7 ,additional taxes 7#a7 ,on ! organization ,9 any case 9 :i* an initial tax is impos$ by subsection 7a77#a7 ) respect to a transf] pursuant to an improp] conduit arrangem5t & su* transf] is n correct$ )9 ! taxable p]iod1 !re is h]eby impos$ a tax equal to #ajj p]c5t ( ! am\nt ( ! transf]4 ,! tax impos$ by ?is p>agraph %all be paid by ! organization4 7#b7 ,on ! managem5t ,9 any case 9 :i* an additional tax is impos$ by p>agraph 7#a71 if an organization manag] refus$ to agree to "p or all ( ! correction1 !re is h]eby impos$ a tax equal to #ej p]c5t ( ! am\nt ( ! transf]4 ,! tax impos$ by ?is p>agraph %all be paid by any organization manag] :o refus$ to agree to "p or all ( ! correction4 7c7 ,special rules ,= purposes ( ?is section-- 7#a7 ,jo9t & sev]al liability ,if m ?an "o p]son is liable "u subsection 7a77#b7 or 7b77#b7 ) respect to a transf]1 all su* p]sons %all be jo9tly & sev]ally liable "u su* p>agraph ) respect to su* transf]4 7#b7 ,limit = managem5t ,) respect to any improp] conduit arrangem5t1 ! maximum am\nt ( ! tax impos$ by subsection 7a77#b7 %all n exce$ #aj1jjj1 & ! maximum am\nt ( ! tax impos$ by subsection 7b77#b7 %all n exce$ #bj1jjj4 7d7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,specifi$ tax-exempt organization ,! t]m specifi$ tax-exempt organization means-- 7,a7 an organization t is exempt f tax "u section #eja7;a7 & is describ$ 9 section #eja7;c77#c71 or 7,b7 any organization :i* 0 describ$ 9 clause 7i7 at any "t dur+ ! #e-ye> p]iod end+ on ! date ( ! transf] pursuant to an improp] conduit arrangem5t4 7#b7 ,improp] conduit arrangem5t ,! t]m improp] conduit arrangem5t means1 ) respect to a specifi$ tax-exempt organization1 an arrangem5t 7express or impli$7 ) ano!r p]son "u :i*-- 7,a7 contributions are solicit$ or receiv$ to be transf]r$ to a specifically id5tifi$ p]son n exempt f tax "u section #eja7;a71 & 7,b7 ! organization fails to ex]cise discretion & control ov] ! use ( ! funds4 7#c7 ,correction ,! t]ms correction & correct mean1 ) respect to any transf] to :i* ?is section applies1 recov]+ "p or all ( ! transf] to ! ext5t recov]y is possible1 & :]e full recov]y is n possible su* additional corrective action z is prescrib$ by ! ,secret>y by regulations4 7#d7 ,taxable p]iod ,! t]m taxable p]iod means1 ) respect to any transf] "u an improp] conduit arrangem5t1 ! p]iod beg9n+ ) ! date on :i* ! transf] occurs & end+ on ! e>li] (-- 7,a7 ! date ( mail+ ( a notice ( defici5cy ) respect to ! tax impos$ by subsection 7a77#a7 "u section #fbab1 or 7,b7 ! date on :i* tax impos$ by subsection 7a77#a7 is assess$4 7#e7 ,organization manag] ,! t]m organization manag] means1 ) respect to any specifi$ tax-exempt organization1 any (fic]1 director1 or tru/ee ( su* organization 7or any individual hav+ p[]s or responsibilities simil> to ^? ( (fic]s1 directors1 or tru/ees ( ! organization74 4 7#b7 ,cl]ical am5dm5t ,! table ( sections = sub*apt] ,d ( *apt] #db ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #difj;,a4 ,taxes on improp] conduit arrangem5ts4 4 7d7 ,regulations ,! ,secret>y ( ! ,treasury %all prescribe su* regulations z may be necess>y or appropriate to cl>ify-- 7#a7 arrangem5ts to :i* section #fjcc7p77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is ,act7 applies1 & 7#b7 :at con/itutes discretion & control = purposes ( sections #fjcc7p77#a77;,c77i7 & #difj;,a7d77#b77;,b7 ( su* ,code 7z add$ by ?is ,act74 7e7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbg4