There is hereby imposed on each taxable distribution a tax equal to 20 percent of the amount thereof. The tax imposed by this paragraph shall be paid by the sponsoring organization with respect to the donor advised fund.
There is hereby imposed on the agreement of any fund manager to the making of a distribution, knowing that it is a taxable distribution, a tax equal to 5 percent of the amount thereof. The tax imposed by this paragraph shall be paid by any fund manager who agreed to the making of the distribution.
For purposes of subsection (a)-
If more than one person is liable under subsection (a)(2) with respect to the making of a taxable distribution, all such persons shall be jointly and severally liable under such paragraph with respect to such distribution.
With respect to any one taxable distribution, the maximum amount of the tax imposed by subsection (a)(2) shall not exceed $10,000.
For purposes of this section-
The term "taxable distribution" means any distribution from a donor advised fund-
Such term shall not include any distribution from a donor advised fund-
For purposes of this subchapter-
The term "sponsoring organization" means any organization which-
Except as provided in subparagraph (B) or (C), the term "donor advised fund" means a fund or account-
The term "donor advised fund" shall not include any fund or account-
The Secretary may exempt a fund or account not described in subparagraph (B) from treatment as a donor advised fund-
The term "fund manager" means, with respect to any sponsoring organization-
The term "disqualified supporting organization" means, with respect to any distribution-
An organization is described in this subparagraph if the organization meets the requirements of subparagraphs (A) and (C) of section 509(a)(3) and is-
An organization is described in this subparagraph if the organization is a functionally integrated type III supporting organization (as defined under section 4943(f)(5)(B)).
26 U.S.C. § 4966
Added Pub. L. 109-280, title XII, §1231(a), Aug. 17, 2006, 120 Stat. 1095.
EFFECTIVE DATESection applicable to taxable years beginning after Aug. 17, 2006, see section 1231(c) of Pub. L. 109-280 set out as an Effective Date of 2006 Amendment note under sectionof this title.
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.