112 STAT. 2734 PUBLIC LAW 105-285—OCT. 27, 1998 " (II) No RECORDKEEPING IN CERTAIN CASES.— An organization shall not be required to establish or maintain records with respect to the incomes of individuals and families for purposes of subclause (I) if such individuals or families are members of groups that are generally recognized as including substantially only individuals and families described in subclause (I). "(Ill) FOOD AID AND HOMELESS SHELTERS. — Except as otherwise provided by the appropriate State authority, for purposes of subclause (I), services to individuals in the form of— "(aa) donations of food or meals; or "(bb) temporary shelter to homeless individuals; shall be treated as provided to individuals described in subclause (I) if the location and provision of such services are such that the service provider may reasonably conclude that the beneficiaries of such services are predominantly individuals described in subclause (I), "(iv) MINIMUM EXPENSE REQUIREMENT.— "(I) IN GENERAL.—An organization meets the requirements of this clause only if the appropriate State authority reasonably expects that the annual poverty program expenses of such organization will not be less man 75 percent of the annual aggregate expenses of such organization. "(II) POVERTY PROGRAM EXPENSE.— For purposes of subclause (I)— "(aa) IN GENERAL.—The term 'poverty program expense' means any expense in providing direct services referred to in clause (iii). "(bb) EXCEPTIONS.—Such term shall not include any management or general expense, any expense for the purpose of influencing legislation (as defined in section 4911(d) of the Internal Revenue Code of 1986), any expense for the purpose of fundraising, any expense for a legal service provided on behalf of any individual referred to in clause (iii), any expense for providing tuition assistance relating to compulsory school attendsuice, and any expense that consists of a payment to an affiliate of the organization. "(v) REPORTING REQUIREMENT.—The information required to be furnished under this clause about 2in organization is— "(I) the percentages determined by dividing the following categories of the organization's expenses for the year by the total expenses of the organization for the year: expenses for direct services, msinagement expenses, general e^enses, fundraising expenses, and payments to affiliates; and "(II) the category or categories (including food, shelter, education, substance abuse prevention or
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