II 
110TH CONGRESS 
2D SESSION 
H. R. 7083 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 29 (legislative day, SEPTEMBER 17), 2008 
Received 
AN ACT 
To amend the Internal Revenue Code of 1986 to enhance 
charitable giving and improve disclosure and tax adminis-
tration. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Charity Enhancement Act of 2008’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title, etc. 
Sec. 2. Funds advised by certain public charities and governmental entities not 
treated as donor advised funds. 
Sec. 3. Certain scholarship distributions from donor advised funds not treated 
as taxable distributions. 
Sec. 4. Repeal of special written acknowledgment requirement for charitable 
contributions to donor advised funds. 
Sec. 5. Reasonable compensation paid by supporting organizations to substan-
tial contributors not treated as an excess benefit. 
Sec. 6. Exception from holdings and payout requirements for longstanding, 
fully funded type III supporting organizations. 
Sec. 7. Contributions by Indian tribal governments treated same as contribu-
tions by States. 
Sec. 8. Electronic filing of exempt organization annual returns. 
Sec. 9. Expansion of bad check penalty to electronic payments, etc. 
SEC. 2. FUNDS ADVISED BY CERTAIN PUBLIC CHARITIES 
AND GOVERNMENTAL ENTITIES NOT TREAT-
ED AS DONOR ADVISED FUNDS. 
(a) IN GENERAL.—Subparagraph (B) of section 
4966(d)(2) is amended by striking ‘‘or’’ at the end of 
clause (i), by striking the period at the end of clause (ii) 
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and inserting ‘‘, or’’, and by adding at the end the fol-
lowing new clause: 
‘‘(iii) if all contributions to such fund 
or account have been made, and all advi-
sory privileges referred to in subparagraph 
(A)(iii) with respect to such fund or ac-
count have been exercised, by either— 
‘‘(I) one or more organizations 
described in clause (i), (ii), (iii), (iv), 
or (vi) of section 170(b)(1)(A) or sec-
tion 509(a)(2), or 
‘‘(II) one or more entities de-
scribed in section 170(c)(1).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 3. CERTAIN SCHOLARSHIP DISTRIBUTIONS FROM 
DONOR ADVISED FUNDS NOT TREATED AS 
TAXABLE DISTRIBUTIONS. 
(a) IN GENERAL.—Subsection (c) of section 4966 is 
amended by adding at the end the following new para-
graph: 
‘‘(3) EXCEPTION
FOR
CERTAIN
SCHOLARSHIP 
DISTRIBUTIONS.— 
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