CLINTON Act of 2016

To amend the Internal Revenue Code of 1986 to prohibit certain charitable organizations from accepting contributions from persons connected to foreign governments. 1. Short title This Act may be cited as the Contributions Legally Interdicted from Noncitizens To Our Nonprofits Act of 2016 CLINTON Act of 2016 2. Certain charitable organizations prohibited for accepting contributions from persons connected to foreign governments (a) In general Section 501 (s) Prohibition on acceptance of contributions from persons connected to foreign governments by 501(c)(3) (1) Termination of tax-exempt status A Federal official organization shall not be treated as described in subsection (c)(3) with respect to any period after the date on which such organization knowingly or willingly accepts or solicits any contribution from any person connected to a foreign government. If a Federal official organization accepts a contribution from any person and learns that such person is connected to a foreign government after such acceptance, such organization shall not be treated for purposes of this subsection as knowingly or willingly accepting such contribution from such person if such contribution is returned to such person not later than the date which is 30 days after the date on which the organization so learns the status of such person. (2) Forfeiture of prohibited contributions There is hereby imposed a tax on any Federal official organization which knowingly or willingly accepts any contribution from any person connected to any foreign government in an amount equal to the amount of such contribution. (3) Federal official organization For purposes of this subsection, the term Federal official organization (4) Federal official For purposes of this subsection, the term Federal official (A) at any time prior the date of the contribution referred to in paragraph (1) or (2), is serving or has served as President or Vice-President, or (B) at any time during the 20-year period ending on the date of the contribution referred to in paragraph (1) or (2), holds or has held any of the following positions in the Federal government: (i) Any Member of Congress (including any Delegate and Resident Commissioner). (ii) Any officer or employee appointed by the President, Vice-President, or any agency head and subject to confirmation by the Senate. (iii) Any of the following positions which are held at the pleasure of the President: (I) Assistant to the President. (II) Chief of staff. (III) National security advisor. (IV) Deputy chief of staff. (iv) Any Federal judge, without regard to the article of the Constitution pursuant to which appointed. (5) Persons connected to foreign government For purposes of this subsection, the term person connected to a foreign government (A) Any department, agency, or instrumentality of a foreign government. (B) Any public international organization (as defined in section 104 of the Foreign Corrupt Practices Act of 1977 ( 15 U.S.C. 78dd–2 (C) Any officer or employee of any entity described in subparagraph (A) or (B). (D) Any individual who was described in subparagraph (C) at any time during the 20-year period ending on the date on which the contribution from such individual is accepted or solicited. (E) Any person acting in an official capacity for or on behalf of any entity described in subparagraph (A) or (B). (F) Any person belonging to a ruling or royal family by virtue of sanguinity or marriage. (G) Any person related within four degrees of consanguinity to a person described in subparagraph (E) or (F). . (b) Effective date The amendment made by this section shall apply to contributions made after the date of the enactment of this Act in taxable years ending after such date.

Summary: Contributions Legally Interdicted from Noncitizens To Our Nonprofits Act of 2016 or the CLINTON Act of 2016 This bill amends the Internal Revenue Code to prohibit a federal official organization from being treated as a tax-exempt organization under section 501(c)(3) for any period after the date on which the organization knowingly or willingly accepts or solicits any contribution from any person connected to a foreign government. A tax-exempt organization is a "federal official organization" if one or more current or former specified federal officials established, control, or actively participate in the management of the organization. If the organization accepts a contribution from any person and learns that that the person is connected to a foreign government after the acceptance, it will not be treated as knowingly or willingly accepting the contribution if the contribution is returned within 30 days of learning of the status of the person. The bill imposes a tax on any federal official organization that knowingly or willingly accepts any contribution from any person connected to any foreign government in an amount equal to the amount of the contribution.