A bill to amend the Internal Revenue Code of 1954 to provide that the excise taxes on self-dealing by a private foundation shall not apply to certain scholarships awarded to children of foundation managers.

Amends the Internal Revenue Code to exempt from the excise taxes on self-dealing by a private foundation certain scholarships awarded to the lineal descendants (or spouses of lineal descendants) of a foundation manager. Limits such exemption to scholarships: (1) that are not taxable expenditures; (2) when at least one-half of the scholarships awarded during the calendar year by such foundation are for the same or a greater amount than the particular scholarship concerned; (3) when the manager is not a disqualified person for any other reason; (4) when eligibility for all scholarships is determined by an objective test based on scholastic achievement, and application of such test does not involve substantial discretion on the part of any manager; and (5) when not more than three percent of the aggregate amount of scholarships awarded are awarded to lineal descendants (or spouses of lineal descendants) of any foundation managers.