6 U.S.C. § 331 — Treatment of charitable trusts for members of the Armed Forces of the United States and other governmental organizations

(a) Findings. Congress states several facts: members of the armed forces defend the country, and some have died fighting terrorism; CIA officers doing covert work face danger, and some have died too; FBI employees and other federal agents risk their lives daily; these people are considered patriots; CIA officer Johnny Micheal Spann was the first American killed in the War on Terrorism after September 11, 2001; he left behind a wife and children; families of service members killed by terrorist attacks or military operations abroad currently receive a $6,000 death benefit plus a small monthly benefit; and Congress finds the current system of compensating spouses and children inequitable and in need of improvement. (b) Designation of Johnny Micheal Spann Patriot Trusts. Any charity -- corporation, fund, foundation, or trust, or a separate fund or account within one -- that otherwise meets the legal requirements for charities, and also meets the requirements in (c), is eligible to call itself a "Johnny Micheal Spann Patriot Trust." (c) Requirements for the designation. (1) Not counting money reasonably needed to set up the trust, at least 85% of all funds or donations it receives (including investment earnings) must be distributed to -- or, if placed in a private foundation, held in trust for -- surviving spouses, children, or dependent parents, grandparents, or siblings of (A) armed forces members; (B) intelligence community personnel, including contractors; (C) FBI employees; or (D) other federal officers, employees, or contract employees, whose deaths occur in the line of duty from terrorist attacks, military operations, intelligence operations, law enforcement operations, or related accidents connected to fighting terrorism after September 11, 2001, including under the 2001 Authorization for Use of Military Force. (2) Other than setup costs, no more than 15% of funds or donations (or 15% of a private foundation's annual earnings) may be used for administrative purposes. (3) None of the trust's net earnings may benefit any individual just because they are a shareholder, officer, or employee. (4) None of the trust's activities may be conducted in a way that violates laws against trying to influence legislation. (5) The trust may not participate in or intervene in any political campaign for or against a candidate, including through published or distributed statements. (6) The trust must comply with instructions from the Director of Central Intelligence, the Attorney General, or the Secretary of Defense about protecting intelligence sources and methods, sensitive law-enforcement information, or other sensitive national security information -- including methods for confidentially disbursing funds. (7) A trust receiving more than $1,000,000 in annual contributions must be audited every year by an independent certified public accounting firm. The audit must be filed with the IRS and open to public inspection, except that how it is conducted, filed, and made available must still be consistent with protecting sensitive intelligence and law-enforcement information. (8) The trust must make distributions to eligible beneficiaries at least once every calendar year, beginning no later than 12 months after the trust forms. Funds, donations, and earnings not placed in a dedicated private foundation must be distributed within 36 months after the end of the fiscal year they were received. (9)(A) When deciding how much to distribute to a beneficiary, the trust should account for any other compensation ("collateral source compensation") the beneficiary has received or is entitled to because of the death. (B) That includes life insurance, pension funds, death benefit programs, and government payments related to the death. (d) Treatment of Johnny Micheal Spann Patriot Trusts. Each trust must refrain from certain fundraising activities described in campaign-finance law (section 30101(20)(A) of title 52), so that a general solicitation of funds by certain individuals under section 30125(e) of title 52 remains allowed, as long as it meets that law's requirements. (e) Notification of Trust beneficiaries. Despite any other law, and in a way that protects intelligence sources and methods and sensitive law-enforcement information, the Secretary of Defense, the Director of the FBI, or the Director of Central Intelligence (or their designees) may forward information received from an executor, administrator, or other legal representative of a deceased person's estate -- someone described in (c)(1) -- to a trust, on how to contact people eligible for a distribution, so the trust can provide assistance. Neither forwarding nor failing to forward this information creates a basis for a lawsuit against a federal department, agency, officer, agent, or employee. (f) Regulations. Within 90 days after November 25, 2002, the Secretary of Defense, working with the Attorney General, the Director of the FBI, and the Director of Central Intelligence, must prescribe regulations to carry out this section.