Everyday Philanthropist Act
Bill: H.R.4585 | Sponsor: Rep. Suozzi, Thomas R. (D-NY)
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 one 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 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 separate 
                        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 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 is 
                        not a highly compensated or key employee and 
                        who is eligible to participate in the 
                        arrangement.
                            ``(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.--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, 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,
                            ``(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 percentage 
                        limitation).
                    ``(C) Identifying information.--No distribution 
                shall be excluded from the gross income under 
                subparagraph (A) unless the taxpayer provides on the 
                return of tax the name and address of the entity to 
                whom the distribution is made. In the case of a failure 
                to provide the information required by the preceding 
                sentence, the preceding sentence shall not apply if it 
                is shown that the taxpayer exercised due diligence 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).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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