A bill to amend the Internal Revenue Code of 1954 to provide that an activity relating to the free distribution of low cost articles by certain nonprofit organizations and veterans' organizations in connection with the solicitation of charitable contributions does not constitute an unrelated trade or business of such organization.

Amends the Internal Revenue Code to provide that an activity relating to the distribution of low cost articles (any article which has a cost not in excess of five dollars to the organization which distributes such item) by certain nonprofit organizations and veterans' organizations in connection with the solicitation of charitable contributions does not constitute an unrelated trade or business of such organization. Provides for a yearly inflation adjustment to the cost of the low-cost articles which may be distributed.