Title: GIVING Act
Policy area: Taxation

Summary:
Good Incentives for Vital Non-profit Governance Act or the GIVING Act
This bill amends the Internal Revenue Code to establish a new 501(c)(3)(A) status for certain tax-exempt organizations with exempt-purpose expenditures that comprise at least 75% of the total expenditures of the organization for the year. Exempt-purpose expenditures exclude administrative expenses.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6397 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6397

 To amend the Internal Revenue Code of 1986 to establish a new status 
 for certain tax-exempt organizations with administrative expenses not 
                 exceeding 25 percent of contributions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2018

  Mr. Posey introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to establish a new status 
 for certain tax-exempt organizations with administrative expenses not 
                 exceeding 25 percent of contributions.

    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 ``Good Incentives for Vital Non-profit 
Governance Act'' or the ``GIVING Act''.

SEC. 2. ESTABLISHMENT OF A NEW STATUS FOR CERTAIN TAX-EXEMPT 
              ORGANIZATIONS WITH ADMINISTRATIVE EXPENSES NOT EXCEEDING 
              25 PERCENT OF CONTRIBUTIONS.

    (a) In General.--Section 501 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(s) Administrative Expenses Management.--
            ``(1) In general.--Any organization--
                    ``(A) which is described in subsection (c)(3) and 
                exempt from tax under subsection (a), and
                    ``(B) the exempt purpose expenditures of which 
                comprise at least 75 percent of the total expenditures 
                of the organization for the taxable year,
        may characterize itself as a `501(c)(3)(A) status 
        organization'.
            ``(2) Exempt purpose expenditures defined.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `exempt purpose 
                expenditures' means, with respect to any organization 
                for any taxable year, the total of the amount paid or 
                incurred by such organization to accomplish purposes 
                described in section 170(c)(2)(B).
                    ``(B) Certain amounts excluded.--The term `exempt 
                purpose expenditures' does not include any 
                administrative expenses.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning more than 180 days after the date of 
the enactment of this Act.
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