To amend the Internal Revenue Code of 1986 to allow charitable organizations to collect and disperse deductible contributions for certain individuals who are injured or killed in an effort to protect life or property.

Summary: Charitable Aid to Community Heroes Act of 2008 - Amends the Internal Revenue Code to permit charitable organizations to receive contributions on behalf of federal, state, or local government employees or members of a volunteer emergency response organization who are injured or killed while protecting life or property and to distribute such contributions to such employees or members and their family members within a specified time period.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Charitable Aid to Community Heroes 
Act of 2008''.

SEC. 2. CHARITABLE ORGANIZATIONS PERMITTED TO COLLECT AND DISPERSE 
              DEDUCTIBLE CONTRIBUTIONS FOR CERTAIN INDIVIDUALS WHO ARE 
              INJURED OR KILLED IN AN EFFORT TO PROTECT LIFE OR 
              PROPERTY.

    (a) In General.--Section 170 of the Internal Revenue Code of 1986 
(relating to charitable, etc., contributions and gifts) is amended by 
redesignating subsection (p) as subsection (q) and by inserting after 
subsection (o) the following new subsection:
    ``(p) Charitable Organizations Permitted To Collect and Disperse 
Deductible Contributions for Certain Individuals Who Are Injured or 
Killed in an Effort To Protect Life or Property.--For purposes of this 
title--
            ``(1) In general.--Payments made by an organization 
        described in paragraph (1) or (2) of section 509(a) to an 
        eligible individual or to a member of such individual's family 
        shall be treated as related to the purpose or function 
        constituting the basis for such organization's exemption under 
        section 501 if the requirements of paragraphs (3), (4), and (5) 
        are met.
            ``(2) Eligible individual.--For purposes of this 
        subsection, the term `eligible individual' means any individual 
        who is injured or killed in an effort to protect life or 
        property if such individual is injured or killed while on duty 
        as--
                    ``(A) any Federal, State, or local government 
                employee, or
                    ``(B) a member of a qualified volunteer emergency 
                response organization (as defined in section 
                139B(c)(3)).
            ``(3) Fundraising requirements.--The requirements of this 
        paragraph are met if--
                    ``(A) the organization referred to in paragraph (1) 
                does not engage in any effort to solicit contributions 
                for distribution under this subsection,
                    ``(B) such organization accepts contributions with 
                respect to any death or injury only during the 1-year 
                period beginning on the last day of the event which 
                resulted in such death or injury,
                    ``(C) at least 50 donors contribute to such 
                organization with respect to such event, and
                    ``(D) more than 95 percent of the funds are 
                contributed by persons who are unrelated to any 
                individual who is entitled to any distribution from 
                such contributions.
            ``(4) Administrative requirements.--The requirements of 
        this paragraph are met if the entire amount contributed (and 
        any earnings thereon) is distributed to eligible individuals or 
        members of their families.
            ``(5) Distribution requirements.--
                    ``(A) In general.--The requirements of this 
                paragraph are met with respect to an event if--
                            ``(i) all distributions are made within 180 
                        days after the close of the 1-year period 
                        referred to in paragraph (3)(B), and
                            ``(ii) of the aggregate amount to be 
                        distributed--
                                    ``(I) half is distributed in equal 
                                amounts to each eligible individual 
                                with respect to such event, and
                                    ``(II) half is distributed in 
                                accordance with subparagraph (B).
                    ``(B) Family shares.--The amount required to be 
                distributed under this subparagraph shall be 
                distributed as follows (with shares being equal 
                amounts):
                            ``(i) Each eligible individual shall 
                        receive 1 share.
                            ``(ii) Each spouse of an eligible 
                        individual shall receive 1 share.
                            ``(iii) Each qualifying child of an 
                        eligible individual or an eligible individual's 
                        spouse shall receive \1/2\ share.
            ``(6) Member of family.--For purposes of this subsection--
                    ``(A) In general.--The members of the family of an 
                eligible individual are the spouse and qualifying 
                children of such individual.
                    ``(B) Date of determination.--The determination of 
                whether an individual is a spouse or qualifying child 
                of an eligible individual shall be made as of the date 
                of the death or injury of such individual, whichever is 
                earlier.
                    ``(C) Qualifying child.--The term `qualifying 
                child' means, with respect to an eligible individual, 
                any individual--
                            ``(i) who bears a relationship to the 
                        eligible individual or the eligible 
                        individual's spouse which is described in 
                        section 152(c)(2),
                            ``(ii) who meets the age requirements of 
                        section 152(c)(3), and
                            ``(iii) over half of whose support is 
                        provided by the eligible individual.
            ``(7) Deceased eligible individuals.--In the case of an 
        eligible individual who died as a result of the event to which 
        this subsection applies, references to such individual shall be 
        treated as references to the estate of such individual.
            ``(8) Organizations receiving contributions with respect to 
        more than 1 event.--If any organization receives contributions 
        with respect to more than 1 event, the provisions of this 
        subsection shall be applied separately with respect to each 
        event.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions received by organizations after the date of the 
enactment of this Act.