I 

114TH CONGRESS 

2D SESSION H. R. 4706 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

certain interest and money market fund dividend income payments to 

charity and to modify the requirements relating to the reporting of 

such payments. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 3, 2016 

Mr. PAULSEN introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

from gross income certain interest and money market 

fund dividend income payments to charity and to modify 

the requirements relating to the reporting of such payments. 

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 ‘‘Interest for Others 

5 Act of 2016’’. 


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1 SEC. 2. EXCLUSION FROM GROSS INCOME OF CERTAIN IN2 TEREST AND MONEY MARKET FUND DIVI3 DENDS PAID TO CHARITY. 

4 (a) IN GENERAL.—Part III of subchapter B of chap5 ter 1 of the Internal Revenue Code of 1986 is amended 

6 by inserting after 139E the following: 

7 ‘‘SEC. 139F. INTEREST AND MONEY MARKET FUND DIVI8 DENDS DONATED TO CHARITY. 

9 ‘‘(a) GENERAL RULE.—In the case of a taxpayer who 

10 is an individual, trust, or estate, gross income for a taxable 

11 year shall not include the amount of a charitable contribu12 tion pursuant to a qualified program made during the tax13 able year in which a calendar year ends. 

14 ‘‘(b) LIMITATIONS.— 

15 ‘‘(1) EXCLUSION LIMITED TO INTEREST AND

16 DIVIDEND INCOME.—The amount excluded from 

17 gross income by subsection (a) for a calendar year 

18 shall not exceed the sum of— 

19 ‘‘(A) in the case of a deposit in a financial 

20 institution, the lesser of— 

21 ‘‘(i) the amount of interest paid to the 

22 taxpayer on such deposit for the calendar 

23 year, and 

24 ‘‘(ii) the aggregate charitable con25 tribution from such deposit during the cal26 endar year, and 


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1 ‘‘(B) in the case of shares in a money mar2 ket fund, the lesser of— 

3 ‘‘(i) the amount of dividends paid with 

4 respect to such shares for the calendar 

5 year, and 

6 ‘‘(ii) the aggregate charitable con7 tribution from such shares during the cal8 endar year. 

9 ‘‘(2) ACCOUNT LIMITATION.—The amount ex10 cluded from gross income by subsection (a) from an 

11 account for a calendar year shall not exceed $50. 

12 ‘‘(c) QUALIFIED PROGRAM.—For purposes of this 

13 section— 

14 ‘‘(1) IN GENERAL.—The term ‘qualified pro15 gram’ means a program adopted by a financial insti16 tution or a money market fund (as the case may be) 

17 under which— 

18 ‘‘(A) the owner of a deposit in the financial 

19 institution or of shares in the money market 

20 fund— 

21 ‘‘(i) elects to participate in the pro22 gram, 

23 ‘‘(ii) elects the amount of donation 

24 from the owner’s deposit or shares, and 


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1 ‘‘(iii) designates an entity described in 

2 section 170(c) to receive the donation, and 

3 ‘‘(B) the financial institution or money 

4 market fund makes, directly or through a quali5 fied aggregator, a contribution of the amount 

6 elected under subparagraph (A)(ii) to the entity 

7 designated under subparagraph (A)(iii). 

8 ‘‘(2) QUALIFIED AGGREGATOR.— 

9 ‘‘(A) IN GENERAL.—The term ‘qualified 

10 aggregator’ means an organization— 

11 ‘‘(i) which is described in section 

12 501(c)(3) and exempt from tax under sec13 tion 501(a), and 

14 ‘‘(ii) the purpose of which is to facili15 tate charitable contributions under a quali16 fied program by aggregating contributions 

17 from deposits and funds and payments to 

18 entities designated to receive such pay19 ments. 

20 ‘‘(B) ADMINISTRATIVE COSTS.—An entity 

21 shall not fail to be treated as a qualified 

22 aggregator solely because the entity retains a 

23 portion of contributions from deposits and 

24 funds to cover its administrative costs if the 

25 qualified aggregator provides notice in advance 


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1 of its intent to retain such a portion. The notice 

2 need not specify the exact amount or percent3 age of the amount to be retained. 

4 ‘‘(C) SPECIAL RULE REGARDING STATUS

5 TO RECEIVE CHARITABLE CONTRIBUTIONS.—A 

6 program shall not fail to be described in para7 graph (1) merely because the ultimate recipient 

8 of a contribution is ineligible to receive chari9 table contributions so long as the qualified 

10 aggregator and the financial institution or 

11 money market fund (as the case may be) made 

12 an initial good faith determination that con13 tributions to recipients under the program 

14 would be qualified under section 170(c) to re15 ceive charitable contributions. For purposes of 

16 the preceding sentence, a financial institution 

17 or money market fund may rely upon the rep18 resentation of the qualified aggregator that the 

19 organizations to which distributions will be 

20 made qualify under section 170(c) to receive 

21 charitable contributions. 

22 ‘‘(d) OTHER DEFINITIONS.—For purposes of this 

23 section— 


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1 ‘‘(1) DEPOSIT.—The term ‘deposit’ means any 

2 deposit, withdrawable account, or withdrawable or 

3 repurchasable share. 

4 ‘‘(2) FINANCIAL INSTITUTION.—The term ‘fi5 nancial institution’ means— 

6 ‘‘(A) any bank (as defined in section 581), 

7 ‘‘(B) any institution described in section 

8 591, 

9 ‘‘(C) any credit union the deposits or ac10 counts in which are insured under Federal or 

11 State law or are protected or guaranteed under 

12 State law, and 

13 ‘‘(D) any similar institution chartered and 

14 supervised under Federal or State law. 

15 ‘‘(3) MONEY MARKET FUND.—The term ‘money 

16 market fund’ means an open-end investment man17 agement company registered under the Investment 

18 Company Act of 1940 and subject to Rule 2a–7 

19 thereof. 

20 ‘‘(4) CHARITABLE CONTRIBUTION.—The term 

21 ‘charitable contribution’ means a charitable con22 tribution as defined in section 170(c).’’. 

23 (b) CLERICAL AMENDMENT.—The table of sections 

24 for part III of subchapter B of chapter 1 of such Code 


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1 is amended by inserting after the item relating to section 

2 139E the following: 

‘‘Sec. 139F. Interest and money market fund dividends donated to charity.’’. 

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

4 this section shall apply to all interest and money market 

5 fund dividends paid after December 31, 2015. 

6 SEC. 3. DENIAL OF DEDUCTION OF AMOUNTS EXCLUDED 

7 FROM INCOME UNDER SECTION 139F. 

8 (a) IN GENERAL.—Section 170(f) of the Internal 

9 Revenue Code of 1986 is amended by adding at the end 

10 the following: 

11 ‘‘(19) CERTAIN DONATED INTEREST AND

12 MONEY MARKET FUND DIVIDENDS.—Amounts ex13 cluded from gross income under section 139F shall 

14 not be taken into account as a charitable contribu15 tion for purposes of this section.’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to all charitable contributions 

18 made after December 31, 2015. 

19 SEC. 4. INFORMATION RETURNS. 

20 (a) MONEY MARKET FUNDS.—Section 6042(b)(2) of 

21 the Internal Revenue Code of 1986 is amended by striking 

22 ‘‘or’’ at the end of subparagraph (A), by striking the pe23 riod at the end of subparagraph (B) and inserting ‘‘, or’’ 

24 and by adding at the end the following: 


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1 ‘‘(C) which is specifically excluded from 

2 gross income of the payee by section 139F(a).’’. 

3 (b) PAYMENTS OF INTEREST.—Section 6049(b)(2) of 

4 such Code is amended by striking ‘‘and’’ at the end of 

5 subparagraph (B), by striking the period at the end of 

6 subparagraph (C) and inserting ‘‘, and’’, and by adding 

7 at the end the following: 

8 ‘‘(D) interest which is specifically excluded 

9 from gross income of the payee by section 

10 139F(a).’’. 

11 (c) RETURNS REGARDING PAYMENTS EXCLUDED

12 FROM GROSS INCOME UNDER SECTION 139F.—Subpart 

13 B of part III of subchapter A of chapter 61 of such Code 

14 is amended by inserting after section 6049 the following: 

15 ‘‘SEC. 6049A. RETURNS REGARDING INTEREST AND MONEY 

16 MARKET FUND DIVIDENDS CONTRIBUTED TO 

17 CHARITY. 

18 ‘‘Every person who, during any calendar year— 

19 ‘‘(1) makes payments of interest or dividends 

20 aggregating $10 or more and who has in effect a 

21 qualified program (as defined in section 

22 139F(c)(1)), or 

23 ‘‘(2) is a qualified aggregator (as defined in 

24 section 139F(c)(2)) and who, under such a qualified 

25 program, receives contributions and makes payments 


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1 aggregating $10 or more to any entity described in 

2 section 170(c), 

3 shall make a return according to the forms or regulations 

4 prescribed by the Secretary setting forth the aggregate 

5 amount of such payments, and the name and address of 

6 the person to whom paid.’’. 

7 (d) CONFORMING AMENDMENT.—The table of sec8 tions for subpart B of part III of subchapter A of chapter 

9 61 of such Code is amended by inserting after the item 

10 relating to section 6049 the following new item: 

‘‘Sec. 6049A. Returns regarding interest and money market fund dividends 

contributed to charity.’’. 

11 (e) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to all payments made after Decem13 ber 31, 2015. 

Æ 


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