Page:United States Statutes at Large Volume 100 Part 3.djvu/959

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2767

"(ii) renting such names and addresses to another such organization. "(2) Low COST ARTICLE DEFINED.—For purposes of this subsection— "(A) IN GENERAL.—The term 'low cost article' means any article which has a cost not in excess of $5 to the organization which distributes such item (or on whose behalf such item is distributed). "(B) AGGREGATION RULE.—If more than 1 item is distributed by or on behalf of an organization to a single distributee in any calendar year, the aggregate of the items so distributed in such calendar year to such distributee shall ' •' be treated as 1 article for purposes of subparagraph (A). "(C) INDEXATION OF $5 AMOUNT.—In the case of any taxable year beginning in a calendar year after 1987, the $5 amount in subparagraph (A) shall be increased by an t: 0 amount equal to— "(i) $5, multiplied by "(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins. "(3) DISTRIBUTION WHICH IS INCIDENTAL TO THE SOLICITATION OF CHARITABLE CONTRIBUTIONS

DESCRIBED.—For

purpOSeS

of

this

subsection, any distribution of low cost articles by an organization shall be treated as a distribution incidental to the solicitation of charitable contributions only if— "(A) such distribution is not made at the request of the distributee, "(B) such distribution is made without the express consent of the distributee, and "(C) the articles so distributed are accompanied by— "(i) a request for a charitable contribution (as defined imm in section 170(c)) by the distributee to such organization, and ' "(ii) a statement that the distributee may retain the low cost article regardless of whether such distributee makes a charitable contribution to such organization." (b) EFFECTIVE DATE.—The amendment made by this section shall apply to distributions of low cost articles and exchanges and rentals of member lists after the date of the enactment of this Act. SEC. 1602. EDUCATIONAL ACTIVITIES AT CONVENTION AND TRADE SHOWS. (a) CERTAIN EDUCATIONAL ACTIVITIES TREATED AS CONVENTION AND TRADE SHOW ACTIVITIES.—Section 513(d)(3)(B) (defining to qualified

convention and trade show activity) is amended by inserting after "industry in general" the following: "or to educate persons in attendance regarding new developments or products and services related to the exempt activities of the organization". (b) QUALIFYING ORGANIZATIONS.—Section 513(d)(3)(C) (defining qualifying organization) is amended— (1) by striking out "501(c)(5) or (6)" and inserting in lieu thereof "501(c)(3), (4), (5), or (6)", and (2) by inserting before the period at the end thereof the following: "or which educates persons in attendance regarding new developments or products and services related to the exempt activities of the organization".

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