110 HR 5930 IH: Charitable Aid to Community Heroes Act U.S. House of Representatives 2008-04-30 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 5930 IN THE HOUSE OF REPRESENTATIVES April 30, 2008 Mrs. Bono Mack (for herself and Mr. Thompson of California) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow charitable organizations to collect and disperse deductible contributions for certain individuals who are injured or killed in an effort to protect life or property.

1.

Short title

This Act may be cited as the Charitable Aid to Community Heroes Act of 2008.

2.

Charitable organizations permitted to collect and disperse deductible contributions for certain individuals who are injured or killed in an effort to protect life or property

(a)

In general

Section 170 of the Internal Revenue Code of 1986 (relating to charitable, etc., contributions and gifts) is amended by redesignating subsection (p) as subsection (q) and by inserting after subsection (o) the following new subsection: (p)

Charitable organizations permitted To collect and disperse deductible contributions for certain individuals who are injured or killed in an effort To protect life or property

For purposes of this title— (1)

In general

Payments made by an organization described in paragraph (1) or (2) of section 509(a) to an eligible individual or to a member of such individual’s family shall be treated as related to the purpose or function constituting the basis for such organization's exemption under section 501 if the requirements of paragraphs (3), (4), and (5) are met. (2)

Eligible individual

For purposes of this subsection, the term eligible individual means any individual who is injured or killed in an effort to protect life or property if such individual is injured or killed while on duty as— (A)any Federal, State, or local government employee, or (B)a member of a qualified volunteer emergency response organization (as defined in section 139B(c)(3)). (3)

Fundraising requirements

The requirements of this paragraph are met if— (A)the organization referred to in paragraph (1) does not engage in any effort to solicit contributions for distribution under this subsection, (B)such organization accepts contributions with respect to any death or injury only during the 1-year period beginning on the last day of the event which resulted in such death or injury, (C)at least 50 donors contribute to such organization with respect to such event, and (D)more than 95 percent of the funds are contributed by persons who are unrelated to any individual who is entitled to any distribution from such contributions. (4)

Administrative requirements

The requirements of this paragraph are met if the entire amount contributed (and any earnings thereon) is distributed to eligible individuals or members of their families. (5)

Distribution requirements

(A)

In general

The requirements of this paragraph are met with respect to an event if— (i)all distributions are made within 180 days after the close of the 1-year period referred to in paragraph (3)(B), and (ii)of the aggregate amount to be distributed— (I)half is distributed in equal amounts to each eligible individual with respect to such event, and (II)half is distributed in accordance with subparagraph (B). (B)

Family shares

The amount required to be distributed under this subparagraph shall be distributed as follows (with shares being equal amounts): (i)Each eligible individual shall receive 1 share. (ii)Each spouse of an eligible individual shall receive 1 share. (iii)Each qualifying child of an eligible individual or an eligible individual’s spouse shall receive ½ share. (6)

Member of family

For purposes of this subsection— (A)

In general

The members of the family of an eligible individual are the spouse and qualifying children of such individual. (B)

Date of determination

The determination of whether an individual is a spouse or qualifying child of an eligible individual shall be made as of the date of the death or injury of such individual, whichever is earlier. (C)

Qualifying child

The term qualifying child means, with respect to an eligible individual, any individual— (i)who bears a relationship to the eligible individual or the eligible individual’s spouse which is described in section 152(c)(2), (ii)who meets the age requirements of section 152(c)(3), and (iii)over half of whose support is provided by the eligible individual. (7)

Deceased eligible individuals

In the case of an eligible individual who died as a result of the event to which this subsection applies, references to such individual shall be treated as references to the estate of such individual. (8)

Organizations receiving contributions with respect to more than 1 event

If any organization receives contributions with respect to more than 1 event, the provisions of this subsection shall be applied separately with respect to each event. . (b)

Effective date

The amendment made by this section shall apply to contributions received by organizations after the date of the enactment of this Act.