Everyday Philanthropist Act
Bill: S.3191 | Sponsor: Sen. Sasse, Ben (R-NE)
Policy area: Taxation

Summary:
Everyday Philanthropist Act
This bill allows employers to offer certain employees a tax-advantaged flexible giving account as a fringe benefit. Flexible giving accounts allow employees to set aside up to $2,700 of their annual pretax earnings to make tax-deductible charitable contributions without having to itemize tax deductions.

To amend the Internal Revenue Code of 1986 to provide for flexible 
                giving accounts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Everyday Philanthropist Act''.

SEC. 2. FLEXIBLE GIVING ACCOUNTS.

    (a) In General.--Subsection (a) of section 132 of the Internal 
Revenue Code of 1986 is amended by striking ``or'' at the end of 
paragraph (7), by striking the period at the end of paragraph (8) and 
inserting ``, or'', and by inserting after paragraph (8) the following:
            ``(9) flexible giving account.''.
    (b) Flexible Giving Account.--Section 132 of such Code is amended 
by redesignating subsection (o) as subsection (p) and by inserting 
after subsection (n) the following:
    ``(o) Flexible Giving Account.--
            ``(1) In general.--
                    ``(A) Flexible giving account.--For purposes of 
                this subsection, a flexible giving account is an 
                account under an arrangement which is a separate 
                written plan of an employer for the exclusive benefit 
                of all eligible employees under which--
                            ``(i) an employee may elect--
                                    ``(I) to receive a reduction in 
                                compensation and have the employer 
                                deposit the amount of the reduction in 
                                a flexible giving account of the 
                                electing employee, and
                                    ``(II) before the reduction under 
                                subclause (I), to designate 1 or more 
                                eligible entities to which 
                                distributions are to be made from the 
                                account,
                            ``(ii) the employer will not make any 
                        reduction under clause (i)(I) unless 1 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 separate 
                        flexible giving account on behalf of each 
                        employee for whom an election is in effect 
                        under clause (i), and
                            ``(vi) the employer agrees to furnish to 
                        each participating employee, on or before 
                        January 31 of each year, a written accounting 
                        of the employee's flexible giving account 
                        showing deposits and disbursements during the 
                        previous calendar year.
                    ``(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--
                                    ``(I) is not a highly compensated 
                                or key employee, and
                                    ``(II) has not been excluded from 
                                the arrangement pursuant to 
                                subparagraph (B).
                            ``(ii) Highly compensated employee.--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 excluded.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), an employer may elect to 
                        exclude under the arrangement described in 
                        paragraph (1) any employee who--
                                    ``(I) has not attained the age of 
                                21 before the close of a plan year of 
                                the arrangement,
                                    ``(II) has less than 1 year of 
                                service with the employer as of any day 
                                during the plan year, or
                                    ``(III) is described in section 
                                410(b)(3)(C) (relating to nonresident 
                                aliens working outside the United 
                                States).
                            ``(ii) Shorter service period; younger 
                        age.--For purposes of clause (i), an employer 
                        may elect to--
                                    ``(I) reduce the applicable minimum 
                                age under subclause (I) of such clause, 
                                or
                                    ``(II) reduce the applicable period 
                                of service under subclause (II) of such 
                                clause.
            ``(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 eligible employee.
                    ``(B) Coordination with section 170.--
                            ``(i) Denial of deduction.--No deduction 
                        shall be allowed under section 170(a) with 
                        respect to any amount distributed from the 
                        flexible giving account of an eligible 
                        employee.
                            ``(ii) Treatment as charitable 
                        contribution.--Except as provided in clause 
                        (i), any distribution from the flexible giving 
                        account of an eligible employee shall otherwise 
                        be treated as a charitable contribution made by 
                        such employee for purposes of section 170, 
                        including for purposes of any limitation 
                        applicable under subsection (b) of such 
                        section.
            ``(4) Eligible entity.--For purposes of this subsection, 
        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) of section 
        170.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>