Truth in Contributions Act

[AI summary unavailable — showing source text] Truth in Contributions Act - Provides that where a public charity fails to expend 50 percent of its gross revenue during the taxable year for charitable purposes, or to other public charities, it shall be subject to an initial excise tax equal to 15 percent of the difference between half of its gross income and its charitable expenditures. Provides for an additional excise tax for 100 percent of the portion of the difference remaining 90 days following the mailing of a deficiency notice by the Secretary of the Treasury notifying the charity that it has failed to distribute the required portion of its income. Provides that qualified expenditures for charitable purposes shall include expenditures for the active conduct of the charity's purpose, and property directly devoted to such conduct, as well as financial obligations for charitable purposes which do not exceed five years and which are for charitable purposes best accomplished through such obligations rather than immediate expenditures. Exempts public charities from this tax during the first four years of their existence. Defines public charities as tax exempt organizations and private foundations (not including church, school, …