EXCESS BUSINESS HOLDINGS OF DONOR ADVISED FUNDS.

SEC. 1233. EXCESS BUSINESS HOLDINGS OF DONOR ADVISED FUNDS.(a) In General.—Section 4943 is amended by adding at the end the following new subsection:“(e) Application of Tax to Donor Advised Funds.—“(1) In general.—For purposes of this section, a donor advised fund (as defined in section 4966(d)(2)) shall be treated as a private foundation.“(2) Disqualified person.—In applying this section to any donor advised fund (as so defined), the term ‘disqualified person’ means, with respect to the donor advised fund, any person who is—“(A) described in section 4966(d)(2)(A)(iii),“(B) a member of the family of an individual described in subparagraph (A), or120 STAT. 1100“(C) a 35-percent controlled entity (as defined in section 4958(f)(3) by substituting ‘persons described in subparagraph (A) or (B) of section 4943(e)(2)’ for ‘persons described in subparagraph (A) or (B) of paragraph (1)’ in subparagraph (A)(i) thereof).“(3) Present holdings.—For purposes of this subsection, rules similar to the rules of paragraphs (4), (5), and (6) of subsection (c) shall apply to donor advised funds (as so defined), except that—“(A) ‘the date of the enactment of this subsection’ shall be substituted for ‘May 26, 1969’ each place it appears in paragraphs (4), (5), and (6), and“(B) ‘January 1, 2007’ shall be substituted for ‘January 1, 1970’ in paragraph (4)(E).”.(b) Effective Date.—The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.