Section 1 Short title
This Act may be cited as the “Good Incentives for Vital Non-profit Governance Act” or the “GIVING Act” .
Good Incentives for Vital Non-profit Governance Act
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.
Sec. 2 Establishment of a new status for certain tax-exempt organizations with administrative expenses not exceeding 25 percent of contributions
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,
“(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.”
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.