By Marie Galetto-Dugoni
The Accelerating Charitable Efforts (ACE) Act is proposed legislation that has put Donor Advised Funds at the forefront of many recent discussions about philanthropy. Much of the legislation is intended to increase the amount and push up the timing of grants from private foundations and donor advised funds (DAFs).
There are many proposed changes, but these are some of the highlights regarding DAFs:
- Increased restrictions on private foundations making donations to DAFs
- Creation of four categories of DAFs with different tax consequences for the donor – a DAF created at a Community Foundation would be treated most favorably
- Change to the rules about how public charities count anonymous gifts from DAFs therefore potentially changing how willing charities would be to accept such gifts
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We are keeping an eye on the conversation around the ACE Act and, like any proposed legislation, it’s hard to know if or how much of it will be passed into law. When and if changes are enacted, we will let you know how it will affect DAFs at the Foundation.
In the meantime, DAFs continue to be a great entry point for many donors who aspire to become more generous and more intentional with their philanthropy. If you have a client interested in a DAF, please share our information, or invite us into the conversation.