Everyday Philanthropist Act
This bill allows employers to offer certain employees a tax-advantaged flexible giving account as a fringe benefit. Flexible giving accounts allow employees to set aside up to $2,700 of their annual pretax earnings to make tax-deductible charitable contributions without having to itemize tax deductions.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3191 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 3191
To amend the Internal Revenue Code of 1986 to provide for flexible
giving accounts, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 4, 2021
Mr. Sasse (for himself and Ms. Baldwin) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for flexible
giving accounts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Everyday Philanthropist Act''.
SEC. 2. FLEXIBLE GIVING ACCOUNTS.
(a) In General.--Subsection (a) of section 132 of the Internal
Revenue Code of 1986 is amended by striking ``or'' at the end of
paragraph (7), by striking the period at the end of paragraph (8) and
inserting ``, or'', and by inserting after paragraph (8) the following:
``(9) flexible giving account.''.
(b) Flexible Giving Account.--Section 132 of such Code is amended
by redesignating subsection (o) as subsection (p) and by inserting
after subsection (n) the following:
``(o) Flexible Giving Account.--
``(1) In general.--
``(A) Flexible giving account.--For purposes of
this subsection, a flexible giving account is an
account under an arrangement which is a separate
written plan of an employer for the exclusive benefit
of all eligible employees under which--
``(i) an employee may elect--
``(I) to receive a reduction in
compensation and have the employer
deposit the amount of the reduction in
a flexible giving account of the
electing employee, and
``(II) before the reduction under
subclause (I), to designate 1 or more
eligible entities to which
distributions are to be made from the
account,
``(ii) the employer will not make any
reduction under clause (i)(I) unless 1 or more
entities have been designated under clause
(i)(II),
``(iii) the employer, as soon after the
deposit under clause (i)(I) as practicable,
makes the disbursements designated under clause
(i),
``(iv) the employer provides reasonable
notification of the availability and terms of
the arrangement to all eligible employees,
``(v) the employer maintains a separate
flexible giving account on behalf of each
employee for whom an election is in effect
under clause (i), and
``(vi) the employer agrees to furnish to
each participating employee, on or before
January 31 of each year, a written accounting
of the employee's flexible giving account
showing deposits and disbursements during the
previous calendar year.
``(B) Maximum reduction.--The amount of a reduction
under subparagraph (A) for a taxable year shall not
exceed $2,700.
``(2) Eligible employee.--For purposes of this subsection--
``(A) In general.--
``(i) Eligible employee.--The term
`eligible employee' means, with respect to a
flexible giving account, any employee who--
``(I) is not a highly compensated
or key employee, and
``(II) has not been excluded from
the arrangement pursuant to
subparagraph (B).
``(ii) Highly compensated employee.--The
term `highly compensated employee' has the
meaning given such term by section 414(q).
``(iii) Key employee.--The term `key
employee' has the meaning given such term by
section 416(i).
``(B) Certain employees may be excluded.--
``(i) In general.--For purposes of
subparagraph (A), an employer may elect to
exclude under the arrangement described in
paragraph (1) any employee who--
``(I) has not attained the age of
21 before the close of a plan year of
the arrangement,
``(II) has less than 1 year of
service with the employer as of any day
during the plan year, or
``(III) is described in section
410(b)(3)(C) (relating to nonresident
aliens working outside the United
States).
``(ii) Shorter service period; younger
age.--For purposes of clause (i), an employer
may elect to--
``(I) reduce the applicable minimum
age under subclause (I) of such clause,
or
``(II) reduce the applicable period
of service under subclause (II) of such
clause.
``(3) Tax treatment of distributions.--
``(A) In general.--Any distribution from a flexible
giving account shall not be includible in the gross
income of the eligible employee.
``(B) Coordination with section 170.--
``(i) Denial of deduction.--No deduction
shall be allowed under section 170(a) with
respect to any amount distributed from the
flexible giving account of an eligible
employee.
``(ii) Treatment as charitable
contribution.--Except as provided in clause
(i), any distribution from the flexible giving
account of an eligible employee shall otherwise
be treated as a charitable contribution made by
such employee for purposes of section 170,
including for purposes of any limitation
applicable under subsection (b) of such
section.
``(4) Eligible entity.--For purposes of this subsection,
the term `eligible entity' means any entity described in
paragraphs (1) through (5) of section 170(c) other than a
private foundation described in subsection (b)(1)(F) of section
170.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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