A bill to provide that the receipts from the excise tax based on the investment income of private foundations shall be used for the supervision of the activities of such foundations.

Establishes the Trust Fund for the Supervision of Private Foundations. Makes the Secretary of the Treasury the trustee of the Fund.

Authorizes to be appropriated to the Fund 100 percent of the excise taxes based on the investment income of private foundations.

Authorizes the Secretary to make payments of up to $250,000 per year to qualifying States Governments for the purposes of auditing private foundations.

States that one-half of Trust Fund amounts may be used by the Internal Revenue Service to supervise compliance of private foundations with the Interanl Revenue Code.

Makes provisions for the return to private foundations of any amounts not needed for supervision.