Browse Bills

There is one summary for this bill. Bill summaries are authored by CRS.

Truth in Contributions Act - Provides that where a public charity fails to expend 50 percent of its gross revenue during the taxable year for charitable purposes, or to other public charities, it shall be subject to an initial excise tax equal to 15 percent of the difference between half of its gross income and its charitable expenditures. Provides for an additional excise tax for 100 percent of the portion of the difference remaining 90 days following the mailing of a deficiency notice by the Secretary of the Treasury notifying the charity that it has failed to distribute the required portion of its income.

Provides that qualified expenditures for charitable purposes shall include expenditures for the active conduct of the charity's purpose, and property directly devoted to such conduct, as well as financial obligations for charitable purposes which do not exceed five years and which are for charitable purposes best accomplished through such obligations rather than immediate expenditures.

Exempts public charities from this tax during the first four years of their existence.

Defines public charities as tax exempt organizations and private foundations (not including church, school, medical care and research, government bodies and college fund raising agencies) which derive more than $25,000 in annual gross revenue.

Provides for the termination of a public charity upon its notification to the Secretary of the Treasury of its intent to terminate, or where the Secretary determines, after consultation with the Attorney General, that repeated failures by the charity to comply with this Act, or to distribute the required portion of its income, make termination appropriate.

Requires each public charity to file with its tax return certain information prepared by a certified public accountant including a statement of its gross revenue on a fund accounting basis, its total expenses on a functional basis, and an analysis of the expense categories involved with each reported functional expense, plus such other information the Secretary deems necessary to present fairly the charity's financial status.

Provides that public charities shall file, and make available to the public, annual reports which include their tax returns, the names and compensation of their officers, the identity of each employee or consultant receiving more than $20,000 in annual income, and such additional information the Secretary requires. Directs public charities to file such reports with the appropriate officials in each State where they solicit contributions.

Directs public charities to provide an annual disclosure statement to each person they solicit and to any person who requests one.

Provides a $1,000 penalty for each failure by a person to comply with the notice and filing requirements for annual reports and disclosure statements.

Provides that the filing periods for commencing taxpayer suits in the Tax Courts with respect to the Act's excise tax on public charities shall not commence until the end of the period preceding the time when the second excise tax may be assessed on undistributed contributions.

Directs the Secretary to encourage State officials to accept the reports, returns and statements required under the Act for the purposes of similar reporting requirements under State laws.

Directs the Attorney General to take whatever steps necessary to preserve the assets of a public charity which were solicited from the public when the charity is to be terminated for failure to comply with this Act or preserve its tax exempt status. Provides that the district courts of the United States shall provide whatever equitable relief is necessary, without bond, upon a showing that such assets will be dissipated or diverted to non-charitable purposes.

Provides that any employee or officer of a public charity who knowingly commits any act resulting in the termination of the status as a public charity shall be fined not more than $5,000, and/or imprisoned not more than one year.

Subjects organizations registered with the Advisory Committee on Voluntary Foreign Aid which are affiliated with such Committee in soliciting contributions, to a fine of up to $1,000. Applies such fine, and a prison term of up to one year, to the employee or employees responsible for the organizations violation.

There is one summary for this bill. Bill summaries are authored by CRS.

Truth in Contributions Act - Provides that where a public charity fails to expend 50 percent of its gross revenue during the taxable year for charitable purposes, or to other public charities, it shall be subject to an initial excise tax equal to 15 percent of the difference between half of its gross income and its charitable expenditures. Provides for an additional excise tax for 100 percent of the portion of the difference remaining 90 days following the mailing of a deficiency notice by the Secretary of the Treasury notifying the charity that it has failed to distribute the required portion of its income.

Provides that qualified expenditures for charitable purposes shall include expenditures for the active conduct of the charity's purpose, and property directly devoted to such conduct, as well as financial obligations for charitable purposes which do not exceed five years and which are for charitable purposes best accomplished through such obligations rather than immediate expenditures.

Exempts public charities from this tax during the first four years of their existence.

Defines public charities as tax exempt organizations and private foundations (not including church, school, medical care and research, government bodies and college fund raising agencies) which derive more than $25,000 in annual gross revenue.

Provides for the termination of a public charity upon its notification to the Secretary of the Treasury of its intent to terminate, or where the Secretary determines, after consultation with the Attorney General, that repeated failures by the charity to comply with this Act, or to distribute the required portion of its income, make termination appropriate.

Requires each public charity to file with its tax return certain information prepared by a certified public accountant including a statement of its gross revenue on a fund accounting basis, its total expenses on a functional basis, and an analysis of the expense categories involved with each reported functional expense, plus such other information the Secretary deems necessary to present fairly the charity's financial status.

Provides that public charities shall file, and make available to the public, annual reports which include their tax returns, the names and compensation of their officers, the identity of each employee or consultant receiving more than $20,000 in annual income, and such additional information the Secretary requires. Directs public charities to file such reports with the appropriate officials in each State where they solicit contributions.

Directs public charities to provide an annual disclosure statement to each person they solicit and to any person who requests one.

Provides a $1,000 penalty for each failure by a person to comply with the notice and filing requirements for annual reports and disclosure statements.

Provides that the filing periods for commencing taxpayer suits in the Tax Courts with respect to the Act's excise tax on public charities shall not commence until the end of the period preceding the time when the second excise tax may be assessed on undistributed contributions.

Directs the Secretary to encourage State officials to accept the reports, returns and statements required under the Act for the purposes of similar reporting requirements under State laws.

Directs the Attorney General to take whatever steps necessary to preserve the assets of a public charity which were solicited from the public when the charity is to be terminated for failure to comply with this Act or preserve its tax exempt status. Provides that the district courts of the United States shall provide whatever equitable relief is necessary, without bond, upon a showing that such assets will be dissipated or diverted to non-charitable purposes.

Provides that any employee or officer of a public charity who knowingly commits any act resulting in the termination of the status as a public charity shall be fined not more than $5,000, and/or imprisoned not more than one year.

Subjects organizations registered with the Advisory Committee on Voluntary Foreign Aid which are affiliated with such Committee in soliciting contributions, to a fine of up to $1,000. Applies such fine, and a prison term of up to one year, to the employee or employees responsible for the organizations violation.

There is one summary for this bill. Bill summaries are authored by CRS.

Truth in Contributions Act - Provides that where a public charity fails to expend 50 percent of its gross revenue during the taxable year for charitable purposes, or to other public charities, it shall be subject to an initial excise tax equal to 15 percent of the difference between half of its gross income and its charitable expenditures. Provides for an additional excise tax for 100 percent of the portion of the difference remaining 90 days following the mailing of a deficiency notice by the Secretary of the Treasury notifying the charity that it has failed to distribute the required portion of its income.

Provides that qualified expenditures for charitable purposes shall include expenditures for the active conduct of the charity's purpose, and property directly devoted to such conduct, as well as financial obligations for charitable purposes which do not exceed five years and which are for charitable purposes best accomplished through such obligations rather than immediate expenditures.

Exempts public charities from this tax during the first four years of their existence.

Defines public charities as tax exempt organizations and private foundations (not including church, school, medical care and research, government bodies and college fund raising agencies) which derive more than $25,000 in annual gross revenue.

Provides for the termination of a public charity upon its notification to the Secretary of the Treasury of its intent to terminate, or where the Secretary determines, after consultation with the Attorney General, that repeated failures by the charity to comply with this Act, or to distribute the required portion of its income, make termination appropriate.

Requires each public charity to file with its tax return certain information prepared by a certified public accountant including a statement of its gross revenue on a fund accounting basis, its total expenses on a functional basis, and an analysis of the expense categories involved with each reported functional expense, plus such other information the Secretary deems necessary to present fairly the charity's financial status.

Provides that public charities shall file, and make available to the public, annual reports which include their tax returns, the names and compensation of their officers, the identity of each employee or consultant receiving more than $20,000 in annual income, and such additional information the Secretary requires. Directs public charities to file such reports with the appropriate officials in each State where they solicit contributions.

Directs public charities to provide an annual disclosure statement to each person they solicit and to any person who requests one.

Provides a $1,000 penalty for each failure by a person to comply with the notice and filing requirements for annual reports and disclosure statements.

Provides that the filing periods for commencing taxpayer suits in the Tax Courts with respect to the Act's excise tax on public charities shall not commence until the end of the period preceding the time when the second excise tax may be assessed on undistributed contributions.

Directs the Secretary to encourage State officials to accept the reports, returns and statements required under the Act for the purposes of similar reporting requirements under State laws.

Directs the Attorney General to take whatever steps necessary to preserve the assets of a public charity which were solicited from the public when the charity is to be terminated for failure to comply with this Act or preserve its tax exempt status. Provides that the district courts of the United States shall provide whatever equitable relief is necessary, without bond, upon a showing that such assets will be dissipated or diverted to non-charitable purposes.

Provides that any employee or officer of a public charity who knowingly commits any act resulting in the termination of the status as a public charity shall be fined not more than $5,000, and/or imprisoned not more than one year.

Subjects organizations registered with the Advisory Committee on Voluntary Foreign Aid which are affiliated with such Committee in soliciting contributions, to a fine of up to $1,000. Applies such fine, and a prison term of up to one year, to the employee or employees responsible for the organizations violation.

There is one summary for this bill. Bill summaries are authored by CRS.

Truth in Contributions Act - Provides that where a public charity fails to expend 50 percent of its gross revenue during the taxable year for charitable purposes, or to other public charities, it shall be subject to an initial excise tax equal to 15 percent of the difference between half of its gross income and its charitable expenditures. Provides for an additional excise tax for 100 percent of the portion of the difference remaining 90 days following the mailing of a deficiency notice by the Secretary of the Treasury notifying the charity that it has failed to distribute the required portion of its income.

Provides that qualified expenditures for charitable purposes shall include expenditures for the active conduct of the charity's purpose, and property directly devoted to such conduct, as well as financial obligations for charitable purposes which do not exceed five years and which are for charitable purposes best accomplished through such obligations rather than immediate expenditures.

Exempts public charities from this tax during the first four years of their existence.

Defines public charities as tax exempt organizations and private foundations (not including church, school, medical care and research, government bodies and college fund raising agencies) which derive more than $25,000 in annual gross revenue.

Provides for the termination of a public charity upon its notification to the Secretary of the Treasury of its intent to terminate, or where the Secretary determines, after consultation with the Attorney General, that repeated failures by the charity to comply with this Act, or to distribute the required portion of its income, make termination appropriate.

Requires each public charity to file with its tax return certain information prepared by a certified public accountant including a statement of its gross revenue on a fund accounting basis, its total expenses on a functional basis, and an analysis of the expense categories involved with each reported functional expense, plus such other information the Secretary deems necessary to present fairly the charity's financial status.

Provides that public charities shall file, and make available to the public, annual reports which include their tax returns, the names and compensation of their officers, the identity of each employee or consultant receiving more than $20,000 in annual income, and such additional information the Secretary requires. Directs public charities to file such reports with the appropriate officials in each State where they solicit contributions.

Directs public charities to provide an annual disclosure statement to each person they solicit and to any person who requests one.

Provides a $1,000 penalty for each failure by a person to comply with the notice and filing requirements for annual reports and disclosure statements.

Provides that the filing periods for commencing taxpayer suits in the Tax Courts with respect to the Act's excise tax on public charities shall not commence until the end of the period preceding the time when the second excise tax may be assessed on undistributed contributions.

Directs the Secretary to encourage State officials to accept the reports, returns and statements required under the Act for the purposes of similar reporting requirements under State laws.

Directs the Attorney General to take whatever steps necessary to preserve the assets of a public charity which were solicited from the public when the charity is to be terminated for failure to comply with this Act or preserve its tax exempt status. Provides that the district courts of the United States shall provide whatever equitable relief is necessary, without bond, upon a showing that such assets will be dissipated or diverted to non-charitable purposes.

Provides that any employee or officer of a public charity who knowingly commits any act resulting in the termination of the status as a public charity shall be fined not more than $5,000, and/or imprisoned not more than one year.

Subjects organizations registered with the Advisory Committee on Voluntary Foreign Aid which are affiliated with such Committee in soliciting contributions, to a fine of up to $1,000. Applies such fine, and a prison term of up to one year, to the employee or employees responsible for the organizations violation.