Truth in Solicitation and Receipt of Charitable Contributions Act of 1986

Truth in Solicitation and Receipt of Charitable Contributions Act of 1986 - Amends the Internal Revenue Code to impose a penalty tax on the undistributed revenue of a public soliciting charity which is not distributed within one year. Sets the amount of such tax at 15 percent of the amount of such revenue remaining undistributed. Provides that any remaining funds still undistributed after a 90-day correction period shall be taxed at a rate of 100 percent of the amount remaining undistributed. Allows an exemption from such tax for organizations in existence for not more than three years.

Imposes criminal penalties for the willful failure to cause such charitable organizations to distribute sufficient revenue. Sets the penalty for such an offense at a fine of not more than $5,000, imprisonment for not more than one year, or both.

Requires anyone who solicits a charitable contribution by mail to include with such a solicitation information pertaining to: (1) the name and principal business address of the person making the solicitation; (2) the purpose of the solicitation and the intended use of the contribution solicited; (3) the estimated portion of all contributions which will be used for the charitable purpose during the 12-month period following the solicitation; and (4) the portion of all contributions which was used for such charitable purpose during the four complete calendar quarters immediately preceding the solicitation.