respect to, assets of such organization, and (ii) with respect to any sponsoring organization (as defined in section 4966(d)(1)), any person (other than an employee of such organization) compensated by such organization for managing the investment of, or providing investment advice with respect to, assets maintained in donor advised funds (as defined in section 4966(d)(2)) owned by such organization. . (e) Application to unions and trade associations Paragraph (1) of section 4958(e) is amended by inserting (5), (6), after (4), . (f) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 13706. Exception from private foundation excess business holding tax for independently-operated philanthropic business holdings (a) In general Section 4943 is amended by adding at the end the following new subsection: (g) Exception for certain holdings limited to independently-operated philanthropic business (1) In general Subsection (a) shall not apply with respect to the holdings of a private foundation in any business enterprise which meets the requirements of paragraphs (2), (3), and (4) for the taxable year. (2) Ownership The requirements of this paragraph are met if— (A) 100 percent of the voting stock in the business enterprise is held by the private foundation at all times during the taxable year, and (B) all the private foundation’s ownership interests in the business enterprise were acquired by means other than by purchase. (3) All profits to charity (A) In general The requirements of this paragraph are met if the business enterprise, not later than 120 days after the close of the taxable year, distributes an amount equal to its net operating income for such taxable year to the private foundation. (B) Net operating income For purposes of this paragraph, the net operating income of any business enterprise for any taxable year is an amount equal to the gross income of the business enterprise for the taxable year, reduced by the sum of— (i) the deductions allowed