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taxable years ending after the date of the enactment 
of this Act. 
(b) MATTERS INCLUDED ON EXEMPT STATUS APPLI-
CATION.—
(1) IN GENERAL.—Section 508 is amended by 
adding at the end the following new subsection: 
‘‘(f) ADDITIONAL PROVISIONS RELATING TO SPON-
SORING ORGANIZATIONS.—A sponsoring organization (as 
defined in section 4966(d)(1)) shall give notice to the Sec-
retary (in such manner as the Secretary may provide) 
whether such organization maintains or intends to main-
tain donor advised funds (as defined in section 
4966(d)(2)) and the manner in which such organization 
plans to operate such funds.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to organizations apply-
ing for tax-exempt status after the date of the enact-
ment of this Act. 
PART 3—IMPROVED ACCOUNTABILITY OF 
SUPPORTING ORGANIZATIONS 
SEC. 1241. REQUIREMENTS FOR SUPPORTING ORGANIZA-
TIONS. 
(a) TYPES OF SUPPORTING ORGANIZATIONS.—Sub-
paragraph (B) of section 509(a)(3) is amended to read 
as follows:
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‘‘(B) is—
‘‘(i) operated, supervised, or controlled 
by one or more organizations described in 
paragraph (1) or (2), 
‘‘(ii) supervised or controlled in con-
nection with one or more such organiza-
tions, or 
‘‘(iii) operated in connection with one 
or more such organizations, and’’. 
(b) REQUIREMENTS
FOR SUPPORTING ORGANIZA-
TIONS.—Section 509 (relating to private foundation de-
fined) is amended by adding at the end the following new 
subsection: 
‘‘(f) REQUIREMENTS FOR SUPPORTING ORGANIZA-
TIONS.—
‘‘(1) TYPE III SUPPORTING ORGANIZATIONS.—
For purposes of subsection (a)(3)(B)(iii), an organi-
zation shall not be considered to be operated in con-
nection with any organization described in para-
graph (1) or (2) of subsection (a) unless such orga-
nization meets the following requirements: 
‘‘(A) RESPONSIVENESS.—For each taxable 
year beginning after the date of the enactment 
of this subsection, the organization provides to 
each supported organization such information
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as the Secretary may require to ensure that 
such organization is responsive to the needs or 
demands of the supported organization. 
‘‘(B) FOREIGN
SUPPORTED
ORGANIZA-
TIONS.—
‘‘(i) IN GENERAL.—The organization 
is not operated in connection with any sup-
ported organization that is not organized 
in the United States. 
‘‘(ii) TRANSITION RULE FOR EXISTING 
ORGANIZATIONS.—If the organization is 
operated in connection with an organiza-
tion that is not organized in the United 
States on the date of the enactment of this 
subsection, clause (i) shall not apply until 
the first day of the third taxable year of 
the organization beginning after the date 
of the enactment of this subsection. 
‘‘(2) ORGANIZATIONS
CONTROLLED
BY
DO-
NORS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a)(3)(B), an organization shall not be 
considered to be—
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‘‘(i) operated, supervised, or controlled 
by any organization described in paragraph 
(1) or (2) of subsection (a), or 
‘‘(ii) operated in connection with any 
organization described in paragraph (1) or 
(2) of subsection (a), 
if such organization accepts any gift or con-
tribution from any person described in subpara-
graph (B). 
‘‘(B) PERSON
DESCRIBED.—A person is 
described in this subparagraph if, with respect 
to a supported organization of an organization 
described in subparagraph (A), such person 
is—
‘‘(i) a person (other than an organiza-
tion described in paragraph (1), (2), or (4) 
of section 509(a)) who directly or indi-
rectly controls, either alone or together 
with persons described in clauses (ii) and 
(iii), the governing body of such supported 
organization, 
‘‘(ii) a member of the family (deter-
mined under section 4958(f)(4)) of an in-
dividual described in clause (i), or