DONATE Act

To amend title 31, United States Code, to allow the heads of certain Executive departments to accept conditional gifts on behalf of Executive departments, and for other purposes. 1. Short title This Act may be cited as the Donations for Our Nation’s Advancement, Transformation, and Enhancement Act DONATE Act 2. Acceptance of conditional gifts (a) In general Subchapter III of chapter 13 1356. Acceptance of conditional gifts (a) Definition In this section— (1) the term covered conditional gift (2) the term Executive department (A) the Department of Agriculture; (B) the Department of Commerce; (C) the Department of Education; (D) the Department of Energy; (E) the Department of Homeland Security; (F) the Department of Housing and Urban Development; (G) the Department of the Interior; (H) the Department of Justice; (I) the Department of Labor; (J) the Department of the Treasury; or (K) the Department of Veterans Affairs. (b) Acceptance (1) In general Notwithstanding any other provision of law, and subject to paragraph (2), the head of each Executive department may, at the discretion of the head of the Executive department, accept a conditional gift on behalf of the Executive department if the conditional gift is made— (A) in cash; and (B) by an individual who is a citizen of the United States. (2) Limitation on acceptance A conditional gift may not be accepted under paragraph (1) if the conditional gift is conditioned upon carrying out any act or purpose that will require an expenditure of funds in an amount that exceeds the amount of the conditional gift, unless the expenditure has been approved by an Act of Congress. (c) Limitation on use The principal of and income from any covered conditional gift shall be held, invested, reinvested, and used in accordance with the conditions of the conditional gift, except that the principal of and income from a conditional gift may not be invested or reinvested in a manner in which the principal of or income from the conditional gift will accrue interest. (d) Budget justifications In the annual budget justification submitted by each Executive department, the head of the Executive department shall include, with respect to the year preceding the date on which the budget justification is submitted, a statement of— (1) each covered conditional gift accepted on behalf of the Executive department during the year preceding the date on which the annual budget justification is submitted; (2) how each covered conditional gift described in paragraph (1) was used by the Executive department; and (3) as applicable, the account or fund in which the funds from each covered gift described in paragraph (1) are deposited. (e) Deficit reduction If funds from a covered conditional gift remain unexpended after carrying out the conditional act or purpose of the covered conditional gift and are not required to carry out any other conditional act or purpose of the covered conditional gift— (1) the head of the Executive department to which the covered conditional gift was made may, at the discretion of the head of the Executive department, transfer the remaining funds to the Secretary of the Treasury; and (2) the Secretary of the Treasury shall— (A) deposit any remaining funds transferred under paragraph (1) in the general fund of the Treasury; and (B) dedicate any remaining funds transferred under paragraph (1) for the sole purpose of deficit reduction. (f) Certain insufficient conditional gifts If a head of an Executive department accepts a covered conditional gift that is made in an amount that is insufficient to meet the cost of carrying out any conditional act or purpose of the conditional gift, the acceptance shall not obligate the Executive department to expend any funds to carry out the conditional act or purpose. . (b) Technical and conforming amendment The table of sections for subchapter III of chapter 13 1356. Acceptance of conditional gifts. . 3. GAO report relating to gifts accepted on behalf of Executive departments (a) Definitions In this section— (1) the term Executive department (2) the term gift (b) Report Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Reform of the House of Representatives a report that shall include— (1) with respect to the year preceding the date on which the report is submitted, a statement of— (A) the source of each gift made to the Executive department during that period; (B) how each gift described in subparagraph (A) was, is being, or will be used; and (C) the account or fund in which the funds from each gift described in subparagraph (A) are deposited; (2) a description of the process that each Executive department uses to— (A) manage any gifts made to the Executive department; and (B) ensure that all gifts made to the Executive department are efficiently used; and (3) recommendations for Executive departments relating to enhancing the management and use of any gifts made to Executive departments.

Summary: Donations for Our Nation's Advancement, Transformation, and Enhancement Act or the DONATE Act This bill allows executive departments to accept conditional gifts on behalf of such departments. Specifically, departments may accept cash donations made by U.S. citizens that come with instructions on how the money should be spent. Current law allows departments to accept donations but not where there are conditions on the money's use. A department may not accept a conditional gift that is conditioned upon carrying out any act or purpose that will require an expenditure of funds that exceeds the gift amount, unless the expenditure has been approved by Congress. If a department accepts a conditional gift that is insufficient to meet the cost of carrying out a conditional act or purpose of the gift, the acceptance shall not obligate the department to expend funds to carry out such act or purpose. The bill allows such departments to transfer unspent gift funds to the Department of the Treasury to reduce the deficit. The Government Accountability Office shall report to Congress on how each department manages such funds and how they are used, including recommendations for enhancing such management and use of funds.