Protect theFreedom to Give
Every American should have the freedom to give to the causes they care about the most, with the flexibility to choose how, when and where to give — because this freedom leads to more generosity that improves lives around the country. Unfortunately, the U.S. Department of the Treasury and Internal Revenue Service are expected to propose new rules that will threaten that very freedom, limit options and flexibility for charitable givers and create barriers for donors and nonprofits alike.
THE DETAILS
In December 2017, the Treasury and IRS issued Notice 2017-73, “Request for Comments on Application of Excise Taxes with Respect to Donor-Advised Funds in Certain Situations,” signaling their intent to develop new regulations that would affect charitable organizations. These regulations may be published at any time.
These new rules may impose additional restrictions on the use of a popular vehicle for charitable giving, donor-advised funds, which accounted for more than $46 billion in donations to charities in 2021. There could also be proposed rules related to the public support test, qualifying distributions and asset donations, among other things. These proposed changes are likely to restrict charitable giving and curtail freedom, not the other way around.
While we are monitoring for the regulations, it is crucial to prepare to take action to protect the freedom to give. Charitable organizations have a right to submit comments to the federal government when the rules are proposed. To learn more about this process and how to engage on this issue, please sign up for more information below.
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Research
Read more about how donor-advised funds support charities and people in need.
Expert Commentary
Learn how public policy proposals could affect charitable organizations and giving vehicles like donor-advised funds.
Much Ado About Private Foundations Using DAFs
Biden Budget Targets Charitable Givers
Biden’s Proposed Budget Threatens Private Foundations
Behind the Debate: Examining the Measures of DAF Payout
Donor-Advised Funds Are Supporting Charities in Time of Need
Why Americans Should Cheer the Use of Donor-Advised Funds
Free to Give
These inspiring stories highlight how donors and charities are helping improve people’s lives and how government policies impact their work.
Interviews
Philanthropic strategist and academic Daniel Heist discusses his research “Understanding the Donor-Advised Fund Giving Process: Insights From Current DAF Users,” highlighting the advantages and opportunities that DAFs provide in charitable giving.
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Part One
In the first of a three-part blog series, Heist shares the various ways donors can use DAFs and the wide range of timing that DAF donors use to give over the short-term vs. the long-term. -
Part Two
The ability to transfer funds from one DAF to another is a common concern. In part two, Heist explains the reasons why donors would choose to transfer from one DAF to another and the benefits of this practice. -
Part Three
In the last installment of this series, Heist discusses the many reasons why donors give anonymously and potential lessons for policymakers as DAFs face regulatory threats.