A bill to amend the Internal Revenue Code of 1954 to make certain changes in the tax treatment of private foundations.

Amends the Internal Revenue Code to provide that the maximum income tax deduction for charitable contributions to private foundations shall be the same as the deduction allowed for contributions to public charities (50 percent of taxpayer adjusted gross income). Eliminates distinctions between public charities and private foundations for purposes of the tax deduction for charitable contributions.

Provides an exemption from the tax on taxable expenditures of a private foundation for grants to charitable organizations not exceeding a total of $15,000 for the calendar year.

Permits the abatement of excise tax penalties imposed on private foundations relating to the initial tax on self-dealing.

Redefines "members of family" for purposes of identifying disqualified persons under the private foundation self-dealing rules to include only the individual's spouse, ancestors, and children and the spouse of the individual's children.

Classifies expenses for the production of gross investment income or for the management of investment property as qualifying distributions for purposes of calculating the undistributed income of a private foundation.

Excludes capital gain income from the computation of net investment income for purposes of computing the tax on the investment income of private foundations.