II 

117TH CONGRESS 

1ST SESSION S. 3191 

To amend the Internal Revenue Code of 1986 to provide for flexible giving 

accounts, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 4, 2021 

Mr. SASSE (for himself and Ms. BALDWIN) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for flexible giving accounts, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Everyday Philan5 thropist Act’’. 

6 SEC. 2. FLEXIBLE GIVING ACCOUNTS. 

7 (a) IN GENERAL.—Subsection (a) of section 132 of 

8 the Internal Revenue Code of 1986 is amended by striking 

9 ‘‘or’’ at the end of paragraph (7), by striking the period 


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1 at the end of paragraph (8) and inserting ‘‘, or’’, and by 

2 inserting after paragraph (8) the following: 

3 ‘‘(9) flexible giving account.’’. 

4 (b) FLEXIBLE GIVING ACCOUNT.—Section 132 of 

5 such Code is amended by redesignating subsection (o) as 

6 subsection (p) and by inserting after subsection (n) the 

7 following: 

8 ‘‘(o) FLEXIBLE GIVING ACCOUNT.— 

9 ‘‘(1) IN GENERAL.— 

10 ‘‘(A) FLEXIBLE GIVING ACCOUNT.—For 

11 purposes of this subsection, a flexible giving ac12 count is an account under an arrangement 

13 which is a separate written plan of an employer 

14 for the exclusive benefit of all eligible employees 

15 under which— 

16 ‘‘(i) an employee may elect— 

17 ‘‘(I) to receive a reduction in 

18 compensation and have the employer 

19 deposit the amount of the reduction in 

20 a flexible giving account of the elect21 ing employee, and 

22 ‘‘(II) before the reduction under 

23 subclause (I), to designate 1 or more 

24 eligible entities to which distributions 

25 are to be made from the account, 


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1 ‘‘(ii) the employer will not make any 

2 reduction under clause (i)(I) unless 1 or 

3 more entities have been designated under 

4 clause (i)(II), 

5 ‘‘(iii) the employer, as soon after the 

6 deposit under clause (i)(I) as practicable, 

7 makes the disbursements designated under 

8 clause (i), 

9 ‘‘(iv) the employer provides reasonable 

10 notification of the availability and terms of 

11 the arrangement to all eligible employees, 

12 ‘‘(v) the employer maintains a sepa13 rate flexible giving account on behalf of 

14 each employee for whom an election is in 

15 effect under clause (i), and 

16 ‘‘(vi) the employer agrees to furnish 

17 to each participating employee, on or be18 fore January 31 of each year, a written ac19 counting of the employee’s flexible giving 

20 account showing deposits and disburse21 ments during the previous calendar year. 

22 ‘‘(B) MAXIMUM REDUCTION.—The amount 

23 of a reduction under subparagraph (A) for a 

24 taxable year shall not exceed $2,700. 


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1 ‘‘(2) ELIGIBLE EMPLOYEE.—For purposes of 

2 this subsection— 

3 ‘‘(A) IN GENERAL.— 

4 ‘‘(i) ELIGIBLE EMPLOYEE.—The term 

5 ‘eligible employee’ means, with respect to a 

6 flexible giving account, any employee 

7 who— 

8 ‘‘(I) is not a highly compensated 

9 or key employee, and 

10 ‘‘(II) has not been excluded from 

11 the arrangement pursuant to subpara12 graph (B). 

13 ‘‘(ii) HIGHLY COMPENSATED EM14 PLOYEE.—The term ‘highly compensated 

15 employee’ has the meaning given such term 

16 by section 414(q). 

17 ‘‘(iii) KEY EMPLOYEE.—The term 

18 ‘key employee’ has the meaning given such 

19 term by section 416(i). 

20 ‘‘(B) CERTAIN EMPLOYEES MAY BE EX21 CLUDED.— 

22 ‘‘(i) IN GENERAL.—For purposes of 

23 subparagraph (A), an employer may elect 

24 to exclude under the arrangement deVerDate Sep 11 2014 06:54 Nov 05, 2021 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3191.IS S3191

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1 scribed in paragraph (1) any employee 

2 who— 

3 ‘‘(I) has not attained the age of 

4 21 before the close of a plan year of 

5 the arrangement, 

6 ‘‘(II) has less than 1 year of 

7 service with the employer as of any 

8 day during the plan year, or 

9 ‘‘(III) is described in section 

10 410(b)(3)(C) (relating to nonresident 

11 aliens working outside the United 

12 States). 

13 ‘‘(ii) SHORTER SERVICE PERIOD; 

14 YOUNGER AGE.—For purposes of clause 

15 (i), an employer may elect to— 

16 ‘‘(I) reduce the applicable min17 imum age under subclause (I) of such 

18 clause, or 

19 ‘‘(II) reduce the applicable period 

20 of service under subclause (II) of such 

21 clause. 

22 ‘‘(3) TAX TREATMENT OF DISTRIBUTIONS.— 

23 ‘‘(A) IN GENERAL.—Any distribution from 

24 a flexible giving account shall not be includible 

25 in the gross income of the eligible employee. 


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1 ‘‘(B) COORDINATION WITH SECTION 170.— 

2 ‘‘(i) DENIAL OF DEDUCTION.—No de3 duction shall be allowed under section 

4 170(a) with respect to any amount distrib5 uted from the flexible giving account of an 

6 eligible employee. 

7 ‘‘(ii) TREATMENT AS CHARITABLE

8 CONTRIBUTION.—Except as provided in 

9 clause (i), any distribution from the flexi10 ble giving account of an eligible employee 

11 shall otherwise be treated as a charitable 

12 contribution made by such employee for 

13 purposes of section 170, including for pur14 poses of any limitation applicable under 

15 subsection (b) of such section. 

16 ‘‘(4) ELIGIBLE ENTITY.—For purposes of this 

17 subsection, the term ‘eligible entity’ means any enti18 ty described in paragraphs (1) through (5) of section 

19 170(c) other than a private foundation described in 

20 subsection (b)(1)(F) of section 170.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 the date of the enactment of this Act. 

Æ 


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