Truth in Contributions Act

Truth In Contributions Act - Imposes a 15 percent tax on the undistributed revenue of a public charity remaining undistributed at the beginning of the second taxable year after such revenue was received. Provides that any revenue remaining undistributed 90 days after notice of deficiency with respect to the 15 percent tax imposed under this Act shall be taxable at a rate of 100 percent (this tax to be effective for taxable years 1980 and thereafter).

States that public charities shall be exempt from such taxation for the first four taxable years of the charity.

Imposes additional information - reporting requirements on public charities, including statements of the gross revenue, total expenses, and accounting principles employed, a balance sheet, and a breakdown of expenses reported.

Requires an annual report to be filed by the chief executive officer of every public charity to include a listing of the 10 most highly compensated officers or employees and each employee or consultant who received more than $20,000 in compensation from the public charity for the taxable year.

Requires a disclosure statement, containing the itemization of revenues and expenses required by this Act, to be furnished by the public charity to its potential contributors at the time of solicitation of contributions.

Assesses a penalty of $1,000 for each willful failure of a private foundation or public charity to comply with the requirements of this Act.

Provides, in the case of a decision to consider the termination of the tax-exempt status of a public charity by the Secretary of the Treasury pursuant to the Internal Revenue Code, that the Attorney General shall take action to preserve the assets consisting of, or derived from, contributions solicited from the public. Provides that any officer or employee of a public charity who knowingly commits any act or series of acts resulting in termination of public charity status shall be fined up to $5,000, imprisoned for up to one year, or both.

Provides that no organization registered with the Advisory Committee on Voluntary Foreign Aid may state that it is registered with that committee in material distributed to the public in connection with the solicitation of contributions to that organization. States that any organization violating these provisions shall be fined not more than $1,000. Provides that any officer or director of any organization who causes the organization to violate these provisions, or who consents to any such violation, shall be fined not more that $1,000, imprisoned for not more than one year, or both.