Senators Angus King (I-ME) and Charles Grassley (R-IA) have introduced a bill that would suppress charitable giving. The title of the bill, the Accelerating Charitable Efforts (ACE) Act, S. 1981, suggests the legislation will increase resources for charities. However, the provisions within the bill would do the opposite—harming the exact charitable organizations and communities they seek to help. In the House, a companion bill, H.R. 6595, was introduced by Rep. Chellie Pingree (D-ME) and Rep. Tom Reed (R-NY) in February 2022.
What’s a DAF?
Donor-advised funds, or DAFs, are charitable giving accounts hosted by national sponsoring charities or community foundations. Every dollar that goes into a DAF is immediately and permanently committed to charitable giving.
- DAFs could face a punitive 50% tax if they don’t meet an arbitrary deadline
- Private foundations are significantly and unnecessarily restricted
- Donor privacy is under attack
- Community foundations get a complicated, narrow carve-out they did not even ask for