Page:United States Statutes at Large Volume 120.djvu/1131

 120 STAT. 1100

26 USC 4943 note.

PUBLIC LAW 109–280—AUG. 17, 2006

‘‘(C) a 35-percent controlled entity (as defined in section 4958(f)(3) by substituting ‘persons described in subparagraph (A) or (B) of section 4943(e)(2)’ for ‘persons described in subparagraph (A) or (B) of paragraph (1)’ in subparagraph (A)(i) thereof). ‘‘(3) PRESENT HOLDINGS.—For purposes of this subsection, rules similar to the rules of paragraphs (4), (5), and (6) of subsection (c) shall apply to donor advised funds (as so defined), except that— ‘‘(A) ‘the date of the enactment of this subsection’ shall be substituted for ‘May 26, 1969’ each place it appears in paragraphs (4), (5), and (6), and ‘‘(B) ‘January 1, 2007’ shall be substituted for ‘January 1, 1970’ in paragraph (4)(E).’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act. SEC. 1234. TREATMENT OF CHARITABLE CONTRIBUTION DEDUCTIONS TO DONOR ADVISED FUNDS.

26 USC 170.

VerDate 14-DEC-2004

10:20 Jul 12, 2007

(a) INCOME.—Section 170(f) (relating to disallowance of deduction in certain cases and special rules), as amended by this Act, is amended by adding at the end the following new paragraph: ‘‘(18) CONTRIBUTIONS TO DONOR ADVISED FUNDS.—A deduction otherwise allowed under subsection (a) for any contribution to a donor advised fund (as defined in section 4966(d)(2)) shall only be allowed if— ‘‘(A) the sponsoring organization (as defined in section 4966(d)(1)) with respect to such donor advised fund is not— ‘‘(i) described in paragraph (3), (4), or (5) of subsection (c), or ‘‘(ii) a type III supporting organization (as defined in section 4943(f)(5)(A)) which is not a functionally integrated type III supporting organization (as defined in section 4943(f)(5)(B)), and ‘‘(B) the taxpayer obtains a contemporaneous written acknowledgment (determined under rules similar to the rules of paragraph (8)(C)) from the sponsoring organization (as so defined) of such donor advised fund that such organization has exclusive legal control over the assets contributed.’’. (b) ESTATE.—Section 2055(e) is amended by adding at the end the following new paragraph: ‘‘(5) CONTRIBUTIONS TO DONOR ADVISED FUNDS.—A deduction otherwise allowed under subsection (a) for any contribution to a donor advised fund (as defined in section 4966(d)(2)) shall only be allowed if— ‘‘(A) the sponsoring organization (as defined in section 4966(d)(1)) with respect to such donor advised fund is not— ‘‘(i) described in paragraph (3) or (4) of subsection (a), or ‘‘(ii) a type III supporting organization (as defined in section 4943(f)(5)(A)) which is not a functionally integrated type III supporting organization (as defined in section 4943(f)(5)(B)), and ‘‘(B) the taxpayer obtains a contemporaneous written acknowledgment (determined under rules similar to the

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