property shall be the amount equal to the shareholder’s 
pro rata share of the adjusted basis of such property.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 109. CHARITABLE ORGANIZATIONS PERMITTED TO 
MAKE COLLEGIATE HOUSING AND INFRA-
STRUCTURE GRANTS. 
(a) IN GENERAL.—Section 501 (relating to exemp-
tion from tax on corporations, certain trusts, etc.) is 
amended by redesignating subsection (q) as subsection (r) 
and by inserting after subsection (p) the following new 
subsection: 
‘‘(q) TREATMENT OF ORGANIZATIONS MAKING COL-
LEGIATE HOUSING AND INFRASTRUCTURE IMPROVEMENT 
GRANTS.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(c)(3) and sections 170(c)(2)(B), 2055(a), and 
2522(a)(2), an organization shall not fail to be 
treated as organized and operated exclusively for 
charitable or educational purposes solely because 
such organization makes collegiate housing and in-
frastructure grants to an organization described in 
subsection (c)(7), so long as, at the time of the 
grant, substantially all of the active members of the
recipient organization are full-time students at the 
college or university with which such recipient orga-
nization is associated. 
‘‘(2) 
HOUSING
AND
INFRASTRUCTURE 
GRANTS.—For purposes of paragraph (1), collegiate 
housing and infrastructure grants are grants to pro-
vide, improve, operate, or maintain collegiate hous-
ing that may involve more than incidental social, 
recreational, or private purposes, so long as such 
grants are for purposes that would be permissible 
for a dormitory of the college or university referred 
to in paragraph (1). A grant shall not be treated as 
a collegiate housing and infrastructure grant for 
purposes of paragraph (1) to the extent that such 
grant is used to provide physical fitness equipment. 
‘‘(3) GRANTS
TO
CERTAIN
ORGANIZATIONS 
HOLDING TITLE TO PROPERTY, ETC.—For purposes 
of this subsection, a collegiate housing and infra-
structure grant to an organization described in sub-
section (c)(2) or (c)(7) holding title to property ex-
clusively for the benefit of an organization described 
in subsection (c)(7) shall be considered a grant to 
the organization described in subsection (c)(7) for 
whose benefit such property is held.’’.
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to grants made after the date of 
the enactment of this Act. 
SEC. 110. CONDUCT OF CERTAIN GAMES OF CHANCE NOT 
TREATED AS UNRELATED TRADE OR BUSI-
NESS. 
(a) IN GENERAL.—Paragraph (1) of section 513(f) 
(relating to certain bingo games) is amended to read as 
follows: 
‘‘(1) IN GENERAL.—The term ‘unrelated trade 
or business’ does not include— 
‘‘(A) any trade or business which consists 
of conducting bingo games, and 
‘‘(B) any trade or business which consists 
of conducting qualified games of chance if the 
net proceeds from such trade or business are 
paid or set aside for payment for purposes de-
scribed in section 170(c)(2)(B), for the pro-
motion of social welfare (within the meaning of 
section 501(c)(4)), or for a purpose for which 
State law specifically authorizes the expenditure 
of such proceeds.’’. 
(b) QUALIFIED GAMES OF CHANCE.—Subsection (f) 
of section 513 is amended by adding at the end the fol-
lowing new paragraph: