A bill to amend the Internal Revenue Code of 1954 to modify the requirements regarding private operating foundations.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to change the definition of an operating foundation with respect to qualifying distributions from such foundation's minimum investment return by substituting the criteria that qualifying distributions shall be three percent of the excess of the fair market value of the assets not used in the foundation's charitable activities less the acquisition indebtedness with respect to such asset. Imposes a tax on tax-exempt foundations at a rate of four percent of the net investment income of nonoperating foundations and a rate of two percent of the net investment income of operating foundations.…