Senate Passes Tax Relief Act of 2005

The Senate passed the Tax Relief Act of 2005, with certain amendments, by a vote of 64 to 33 early this morning.  The two California Senators were split; Sen. Diane Feinstein voted in favor of passage and Sen. Barbara Boxer voted against it.

The following provisions are covered by the bill:

  • IRA charitable rollover
  • Non-itemizer deduction
  • Conservation
  • State-federal disclosure
  • Definition of "donor-advised funds"
  • Aggregate payout requirement for donor-advised funds
  • Minimum distribution rule for donor-advised funds
  • Special rules for gifts of illiquid assets to fund a donor-advised fund
  • Prohibition on income, gift and estate tax deductions for gifts to donor-advised funds to certain supporting organizations
  • Expansion of "disqualified persons" for purposes of IRC section 4958
  • Grants from donor-advised funds to supporting organizations
  • Grants from Type III supporting organizations to donor-advised funds
  • Application of excess business holdings rule to Type III supporting organizations
  • 5% payout requirement for Type III supporting organizations
  • Grants from private foundations to supporting organizations not considered qualifying distributions for the private foundation unless the private foundation exercises expenditure responsibility
  • Increased penalties for violations of private foundation rules

Click here for an article descibing the bill in the Chronicle of Philanthropy.

Click here for the Manager’s Amendment approved by the Senators.

Click here for the Council on Foundations’ analysis of S. 2020, The Tax Relief Act of 2005.