The May/June Issue of Taxations of Exempts, a Thomson Reuters publication, includes “Regulating DAFs Will Not Increase Funding to End User Charities” by RHCC attorneys Reynolds Cafferata and Susanna Kim.
The article looks at recent large-scale studies of giving habits of donors to donor advised funds and concludes that proposed regulations of donor advised funds to impose minimum distribution requirements and term limits on donor advised funds will not increase distributions from donor advised funds.
The article concludes with recommendations for regulatory changes that have the potential to increase distributions from donor advised funds including simplifying the rules for paying pledges from donor advised funds and allowing bifurcation of payment for quid pro quo gifts.