This legislation amends the Internal Revenue Code of 1986 to clarify that charitable organizations will not jeopardize their tax-exempt status by making certain grants. Specifically, it permits organizations described in subsection (c)(3) to provide collegiate housing and infrastructure grants to 501(c)(7) organizations for their collegiate housing property. These grants are defined as funding to provide, improve, operate, or maintain collegiate housing property where substantially all residents are full-time students at an associated college or university. While these grants may involve more than incidental social or recreational purposes, they must align with uses permissible for a university dormitory and explicitly exclude funding for physical fitness facilities . The amendment aims to facilitate support for student housing infrastructure.