A bill to amend the Internal Revenue Code of 1954 to require private foundations to diversify their holdings.

Requires private foundations to diversify their holdings for income tax purposes by providing that for each day on which a private foundation fails to dispose of any non-diversified holding such foundation shall be treated as making an investment, in an amount equal to the amount of such holding, in such a manner as to jeopardize the carrying out of its charitable purposes. (Amends 26 U.S.C. 4944)