GiftLaw Pro http://www.gcfcccorg/giftlaw/glawprosodejspnhblD=G12003-0474... Wednesday, July 20, 2011 GiftLaw Pro Sec. 4966 Taxes on Taxable Distributions Code Sections (a) IMPOSITION OF TAXES (3) SPECIAL RULES (c) TAXABLE DISTRIBUTION (d) DEFINITIONS (a) IMPOSITION OF TAXES (1) ON THE SPONSORING ORGANIZATION There is hereby imposed on each taxable distribution a tax equal to 20 percent of the amount thereof. The tax imposed by this paragraph shall be paid by the sponsoring organization with respect to the donor advised fund. (2) ON THE FUND MANAGEMENT There is hereby imposed on the agreement of any fund manager to the making of a distribution, knowing that it is a taxable distribution, a tax equal to 5 percent of the amount thereof. The tax imposed by this paragraph shall be paid by any fund manager who agreed to the making of the distribution. (b) SPECIAL RULES For purposes of subsection (a) -- (1) JOINT AND SEVERAL LIABILITY If more than one person is liable under subsection (a)(2) with respect to the making of a taxable distribution, all such persons shall be jointly and severally liable under such paragraph with respect to such distribution. (2) LIMIT FOR MANAGEMENT With respect to any one taxable distribution, the maximum amount of the tax imposed by subsection (a)(2) shall not exceed $10,000. (c) TAXABLE DISTRIBUTION For purposes of this section -- (1) IN GENERAL The term "taxable distribution" means any distribution from a donor advised fund -- (A) to any natural person, or 1 014 7/20/2011 8:12 AM EFTA00607670