tributions are to be made from the ac-
count, 
‘‘(ii) the employer will not make any 
reduction under clause (i)(I) unless one or 
more entities have been designated under 
clause (i)(II), 
‘‘(iii) the employer, as soon after the 
deposit under clause (i)(I) as practicable, 
makes the disbursements designated under 
clause (i), 
‘‘(iv) the employer provides reasonable 
notification of the availability and terms of 
the arrangement to all eligible employees, 
‘‘(v) the employer maintains a sepa-
rate flexible giving account on behalf of 
each employee for whom an election is in 
effect clause (i), and 
‘‘(vi) the employer agrees to furnish 
to each participating employee, on or be-
fore January 31 of each year, a written ac-
counting of the employee’s flexible giving 
account showing deposits and disburse-
ments during the previous calendar year. 
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‘‘(B) MAXIMUM REDUCTION.—The amount 
of a reduction under subparagraph (A) for a 
taxable year shall not exceed $2,700. 
‘‘(2) ELIGIBLE
EMPLOYEE.—For purposes of 
this subsection— 
‘‘(A) IN GENERAL.— 
‘‘(i) ELIGIBLE EMPLOYEE.—The term 
‘eligible employee’ means, with respect to a 
flexible giving account, any employee who 
is not a highly compensated or key em-
ployee and who is eligible to participate in 
the arrangement. 
‘‘(ii) 
HIGHLY
COMPENSATED
EM-
PLOYEE.—The term ‘highly compensated 
employee’ has the meaning given such term 
by section 414(q). 
‘‘(iii) KEY
EMPLOYEE.—The term 
‘key employee’ has the meaning given such 
term by section 416(i). 
‘‘(B) CERTAIN
EMPLOYEES
MAY
BE
EX-
CLUDED.—For purposes of subparagraph (A), 
an employer may elect to exclude under the ar-
rangement described in paragraph (1) any em-
ployee who— 
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‘‘(i) has not attained the age of 21 be-
fore the close of a plan year of the ar-
rangement, 
‘‘(ii) has less than 1 year of service 
with the employer as of any day during the 
plan year, and 
‘‘(iii) 
is 
described 
in 
section 
410(b)(3)(C) 
(relating 
to 
nonresident 
aliens working outside the United States). 
‘‘(C) SHORTER SERVICE PERIOD; YOUNGER 
AGE.—An arrangement may provide a shorter 
period of service or younger age for purposes of 
subparagraph (B). 
‘‘(3) TAX TREATMENT OF DISTRIBUTIONS.— 
‘‘(A) IN GENERAL.—Any distribution from 
a flexible giving account shall not be includible 
in the gross income of the distributee. 
‘‘(B) COORDINATION WITH SECTION 170.— 
Distributions from the flexible giving account of 
an employee— 
‘‘(i) shall be treated as a charitable 
contribution of the employee for purposes 
of section 170, 
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‘‘(ii) shall not be taken into account 
under section 170(a) (relating to allowance 
of deduction), but 
‘‘(iii) shall be taken into account 
under section 170(b) (relating to percent-
age limitation). 
‘‘(C) 
IDENTIFYING
INFORMATION.—No 
distribution shall be excluded from the gross in-
come under subparagraph (A) unless the tax-
payer provides on the return of tax the name 
and address of the entity to whom the distribu-
tion is made. In the case of a failure to provide 
the information required by the preceding sen-
tence, the preceding sentence shall not apply if 
it is shown that the taxpayer exercised due dili-
gence in attempting to provide the information 
so required. 
‘‘(4) ELIGIBLE ENTITY.—For purposes of this 
section, the term ‘eligible entity’ means any entity 
described in paragraphs (1) through (5) of section 
170(c) other than a private foundation described in 
subsection (b)(1)(F).’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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