§331 Treatment of Charitable Trusts for Members of the Armed Forces of the United States and Other Governmental Organizations

Summary

Creates a special kind of charity called a Johnny Micheal Spann Patriot Trust to help the families of U.S. military members, intelligence personnel (including contractors), FBI staff, and other federal employees who die on the job in terrorism, military, intelligence, or law enforcement actions after September 11, 2001 (including actions under the Authorization for Use of Military Force). Congress noted these workers risk their lives, named CIA officer Johnny Micheal Spann as the first U.S. casualty in the War on Terror, and said current survivor pay (including a $6,000 death benefit) is not enough. Most of the rules for these trusts require that at least 85% of donations and earnings go to eligible survivors (spouses, children, and dependent parents, grandparents, or siblings); up to 15% may be used for running the trust. Trusts cannot give profits to insiders, lobby, or take part in political campaigns. They must follow directions from the Director of Central Intelligence, the Attorney General, or the Secretary of Defense to protect intelligence, law enforcement, and national security secrets, including confidential ways to pay people. If a trust gets over $1,000,000 a year in donations it must have an independent audit filed with the IRS (open to the public except where secrecy is needed). Payments must be made at least once a year, starting within 12 months of forming the trust, and funds not held in a private foundation must be paid out within 36 months after the fiscal year they were received. Trusts should count other death payments (like insurance, pensions, or government benefits) when setting awards. Agencies may, when safe, give contact information for eligible survivors to these trusts. The Secretary of Defense, with other officials, had to issue rules to make all this work within 90 days after November 25, 2002.