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501 and contributions to which are deductible
under paragraph (2) or (3) of section 170(c),
the term "unrelated trade or business" does
not include--
* * * * * *
(B) any trade or business
which consists of--
(i) exchanging with
another such organization
names and addresses of donors
to (or members of) such
organization, or
(ii) renting such names
and addresses to another such
organization.
Section 513(h) provides a safe harbor for the rental and exchange
of mailing lists between certain charities. Section 513(h) was
enacted during 1986, after the decision of the Court of Claims in
DAV I. Respondent argues that, in enacting section 513(h) and
specifically excluding the income from mailing list transactions
between charities, Congress has agreed with the holding of the
Court of Claims in DAV I that the mailer's list rental payment in
a mailing list transaction is not a royalty that is excludable
from UBTI under section 512(b)(2).
We do not agree. On the day of the adoption of the
conference report accompanying the bill which included section
513(h), Representative Daniel Rostenkowski (D-Ill.), Chairman of
the Ways and Means Committee, commented:
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