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 pay-
ments. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Interest for Others 
Act of 2016’’. 
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SEC. 2. EXCLUSION FROM GROSS INCOME OF CERTAIN IN-
TEREST AND MONEY MARKET FUND DIVI-
DENDS PAID TO CHARITY. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after 139E the following: 
‘‘SEC. 139F. INTEREST AND MONEY MARKET FUND DIVI-
DENDS DONATED TO CHARITY. 
‘‘(a) GENERAL RULE.—In the case of a taxpayer who 
is an individual, trust, or estate, gross income for a taxable 
year shall not include the amount of a charitable contribu-
tion pursuant to a qualified program made during the tax-
able year in which a calendar year ends. 
‘‘(b) LIMITATIONS.— 
‘‘(1) EXCLUSION LIMITED TO INTEREST AND 
DIVIDEND
INCOME.—The amount excluded from 
gross income by subsection (a) for a calendar year 
shall not exceed the sum of— 
‘‘(A) in the case of a deposit in a financial 
institution, the lesser of— 
‘‘(i) the amount of interest paid to the 
taxpayer on such deposit for the calendar 
year, and 
‘‘(ii) the aggregate charitable con-
tribution from such deposit during the cal-
endar year, and 
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‘‘(B) in the case of shares in a money mar-
ket fund, the lesser of— 
‘‘(i) the amount of dividends paid with 
respect to such shares for the calendar 
year, and 
‘‘(ii) the aggregate charitable con-
tribution from such shares during the cal-
endar year. 
‘‘(2) ACCOUNT LIMITATION.—The amount ex-
cluded from gross income by subsection (a) from an 
account for a calendar year shall not exceed $50. 
‘‘(c) QUALIFIED PROGRAM.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The term ‘qualified pro-
gram’ means a program adopted by a financial insti-
tution or a money market fund (as the case may be) 
under which— 
‘‘(A) the owner of a deposit in the financial 
institution or of shares in the money market 
fund— 
‘‘(i) elects to participate in the pro-
gram, 
‘‘(ii) elects the amount of donation 
from the owner’s deposit or shares, and 
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‘‘(iii) designates an entity described in 
section 170(c) to receive the donation, and 
‘‘(B) the financial institution or money 
market fund makes, directly or through a quali-
fied aggregator, a contribution of the amount 
elected under subparagraph (A)(ii) to the entity 
designated under subparagraph (A)(iii). 
‘‘(2) QUALIFIED AGGREGATOR.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
aggregator’ means an organization— 
‘‘(i) which is described in section 
501(c)(3) and exempt from tax under sec-
tion 501(a), and 
‘‘(ii) the purpose of which is to facili-
tate charitable contributions under a quali-
fied program by aggregating contributions 
from deposits and funds and payments to 
entities designated to receive such pay-
ments. 
‘‘(B) ADMINISTRATIVE COSTS.—An entity 
shall not fail to be treated as a qualified 
aggregator solely because the entity retains a 
portion of contributions from deposits and 
funds to cover its administrative costs if the 
qualified aggregator provides notice in advance 
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of its intent to retain such a portion. The notice 
need not specify the exact amount or percent-
age of the amount to be retained. 
‘‘(C) SPECIAL RULE REGARDING STATUS 
TO RECEIVE CHARITABLE CONTRIBUTIONS.—A 
program shall not fail to be described in para-
graph (1) merely because the ultimate recipient 
of a contribution is ineligible to receive chari-
table contributions so long as the qualified 
aggregator and the financial institution or 
money market fund (as the case may be) made 
an initial good faith determination that con-
tributions to recipients under the program 
would be qualified under section 170(c) to re-
ceive charitable contributions. For purposes of 
the preceding sentence, a financial institution 
or money market fund may rely upon the rep-
resentation of the qualified aggregator that the 
organizations to which distributions will be 
made qualify under section 170(c) to receive 
charitable contributions. 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section— 
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‘‘(1) DEPOSIT.—The term ‘deposit’ means any 
deposit, withdrawable account, or withdrawable or 
repurchasable share. 
‘‘(2) FINANCIAL INSTITUTION.—The term ‘fi-
nancial institution’ means— 
‘‘(A) any bank (as defined in section 581), 
‘‘(B) any institution described in section 
591, 
‘‘(C) any credit union the deposits or ac-
counts in which are insured under Federal or 
State law or are protected or guaranteed under 
State law, and 
‘‘(D) any similar institution chartered and 
supervised under Federal or State law. 
‘‘(3) MONEY MARKET FUND.—The term ‘money 
market fund’ means an open-end investment man-
agement company registered under the Investment 
Company Act of 1940 and subject to Rule 2a–7 
thereof. 
‘‘(4) CHARITABLE
CONTRIBUTION.—The term 
‘charitable contribution’ means a charitable con-
tribution as defined in section 170(c).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
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is amended by inserting after the item relating to section 
139E the following: 
‘‘Sec. 139F. Interest and money market fund dividends donated to charity.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to all interest and money market 
fund dividends paid after December 31, 2015. 
SEC. 3. DENIAL OF DEDUCTION OF AMOUNTS EXCLUDED 
FROM INCOME UNDER SECTION 139F. 
(a) IN GENERAL.—Section 170(f) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(19) CERTAIN
DONATED
INTEREST
AND 
MONEY
MARKET
FUND
DIVIDENDS.—Amounts ex-
cluded from gross income under section 139F shall 
not be taken into account as a charitable contribu-
tion for purposes of this section.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to all charitable contributions 
made after December 31, 2015. 
SEC. 4. INFORMATION RETURNS. 
(a) MONEY MARKET FUNDS.—Section 6042(b)(2) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘or’’ at the end of subparagraph (A), by striking the pe-
riod at the end of subparagraph (B) and inserting ‘‘, or’’ 
and by adding at the end the following: 
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‘‘(C) which is specifically excluded from 
gross income of the payee by section 139F(a).’’. 
(b) PAYMENTS OF INTEREST.—Section 6049(b)(2) of 
such Code is amended by striking ‘‘and’’ at the end of 
subparagraph (B), by striking the period at the end of 
subparagraph (C) and inserting ‘‘, and’’, and by adding 
at the end the following: 
‘‘(D) interest which is specifically excluded 
from gross income of the payee by section 
139F(a).’’. 
(c) RETURNS REGARDING PAYMENTS EXCLUDED 
FROM GROSS INCOME UNDER SECTION 139F.—Subpart 
B of part III of subchapter A of chapter 61 of such Code 
is amended by inserting after section 6049 the following: 
‘‘SEC. 6049A. RETURNS REGARDING INTEREST AND MONEY 
MARKET FUND DIVIDENDS CONTRIBUTED TO 
CHARITY. 
‘‘Every person who, during any calendar year— 
‘‘(1) makes payments of interest or dividends 
aggregating $10 or more and who has in effect a 
qualified 
program 
(as 
defined 
in 
section 
139F(c)(1)), or 
‘‘(2) is a qualified aggregator (as defined in 
section 139F(c)(2)) and who, under such a qualified 
program, receives contributions and makes payments 
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