DISCLOSURE RELATED TO QUID PRO QUO CONTRIBUTIONS.

SEC. 13173. DISCLOSURE RELATED TO QUID PRO QUO CONTRIBUTIONS. (a) Disclosure Requirement.— Subchapter B of chapter 61 (relating to information and returns) is amended by redesignating section 6115 as section 6116 and by inserting after section 6114 the following new section: “SEC. 6115. DISCLOSURE RELATED TO QUID PRO QUO CONTRIBUTIONS. “(a) Disclosure Requirement.— If an organization described in section 170(c) (other than paragraph (1) thereof) receives a quid pro quo contribution in excess of $75, the organization shall, in connection with the solicitation or receipt of the contribution, provide a written statement which— “(1) informs the donor that the amount of the contribution that is deductible for Federal income tax purposes is limited to the excess of the amount of any money and the value of any property other than money contributed by the donor over the value of the goods or services provided by the organization, and “(2) provides the donor with a good faith estimate of the value of such goods or services. “(b) Quid Pro Quo Contribution.— For purposes of this section, the term ‘quid pro quo contribution’ means a payment made partly as a contribution and partly in consideration for goods or services provided to the payor by the donee organization. A quid pro quo contribution does not include any payment made to an organization, organized exclusively for religious purposes, in return for which the taxpayer receives solely an intangible religious benefit that generally is not sold in a commercial transaction outside the donative context.” (b) Penalty for Failure To Disclose.— Part I of subchapter B of chapter 68 (relating to assessable penalties) is amended by inserting after section 6713 the following new section: “SEC. 6714. FAILURE TO MEET DISCLOSURE REQUIREMENTS APPLICABLE TO QUID PRO QUO CONTRIBUTIONS. “(a) Imposition of Penalty.— If an organization fails to meet the disclosure requirement of section 6115 with respect to a quid pro quo contribution, such organization shall pay a penalty of $10 for each contribution in respect of which the organization fails to make the required disclosure, except that the total penalty imposed by this subsection with respect to a particular fundraising event or mailing shall not exceed $5,000. “(b) Reasonable Cause Exception.— No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause. (c) Clerical Amendments.— 107 STAT. 457 (1) The table for subchapter B of chapter 61 is amended by striking the item relating to section 6115 and inserting the following new items: “Sec. 6116. Disclosure related to quid pro quo contributions. “Sec. 6116. Cross reference.” (2) The table for part I of subchapter B of chapter 68 is amended by inserting after the item for section 6713 the following new item: “Sec. 6714. Failure to meet disclosure requirements applicable to quid pro quo contributions.” (d) Effective Date.— The provisions of this section shall apply to quid pro quo contributions made on or after January 1, 1994.