Limiting authority of corporations to establish or operate separate segregated funds for political purposes to nonprofit corporations

(a) Limitation (1) In general Section 316(b)(2)(C) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30118(b)(2)(C)) is amended by striking a corporation and inserting a nonprofit corporation. (2) Definition Section 316(b) of such Act (52 U.S.C. 30118(b)) is amended by adding at the end the following new paragraph: (8) For purposes of this section, the term nonprofit corporation means a corporation described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code, other than a corporation which is ineligible to be exempt from taxation under section 501(a) of such Code if it establishes a separate segregated fund under this subsection.. (b) Permitting solicitation of contributions only from executive and administrative personnel Section 316(b) of such Act (52 U.S.C. 30118(b)) is amended— (1) in paragraph (4)(A)(i), by striking its stockholders and their families and; (2) in paragraph (4)(B)— (A) by striking a corporation the first place it appears and inserting a nonprofit corporation; (B) by striking any stockholder, executive or administrative personnel, and inserting any executive or administrative personnel; and (C) by striking stockholders, executive or administrative personnel, and inserting executive or administrative personnel; (3) in paragraph (4)(D)— (A) by striking stockholders and; (B) by striking such stockholders or personnel and inserting such personnel; and (C) by striking such stockholders and personnel and inserting such personnel; and (4) in paragraph (5), by striking stockholders and. (c) Treatment of government contractors Section 317(b) of such Act (52 U.S.C. 30119(b)) is amended— (1) by striking any corporation and inserting any nonprofit corporation; and (2) by striking a corporation and inserting a nonprofit corporation.