Charitable Incentives and Reforms Included on House Pension Bill

On July 28, 2006, the House of Representatives passed H.R. 4, the Pension Protection Act of 2006, which contains a charitable giving incentives package and a charitable reform package .  The bill does not contain certain controversial Senate reform provisions such as a mandatory payout requirement for donor-advised funds and supporting organizations.  The following is an outline of the bill’s charitable provisions:

Charitable Incentives Package

  1. Tax-Free Distributions From IRAs for Charitable Purposes
  2. Charitable Deduction for Contributions of Food Inventory
  3. Basis Adjustment to Stock of S Corporation Contributing Property
  4. Charitable Deduction for Contributions of Book Inventory
  5. Tax Treatment of Certain Payments to Controlling Exempt Organizations
  6. Qualified Conservation Contributions
  7. Excise Tax Exemption for Blood Collector Organizations

Charitable Reform Package

  1. Treasury Report on Certain Life Insurance Contracts
  2. Fines and Penalties Applicable to Charitable Organizations
  3. Charitable Contributions of Facade Easements
  4. Taxidermy and Substantiation of Exempt Use Property
  5. Recapture of Tax Benefit for Charitable Contributions of Exempt Use Property Not Used for an Exempt Use
  6. Clothing and Household Items
  7. Modification of Recordkeeping Requirements for Certain Charitable Contributions
  8. Partial Interest in Donated Property
  9. Appraisal Reform
  10. Credit Counseling
  11. Private Foundation Net Investment Income Excise Tax
  12. Convention or Association of Churches
  13. Notification Requirement for Exempt Organizations
  14. Encourage IRS Information-Sharing with State Charity Officials
  15. Public Disclosure of Information Relating to Unrelated Business Income Tax Returns
  16. Treasury Study on Donor-Advised Funds and Supporting Organizations
  17. Improved Accountability for Donor-Advised Funds and Supporting Organizations

Click here for the "Detailed Summary of Charitable Provisions" published by the Committee on Ways and Means.