Nonprofit Leaders Fear Popular Giving Tool Could Be Curtailed

Some charities are concerned that donor-advised funds might be in jeopardy as the Internal Revenue Service steps up scrutiny of the giving tool, reports The Wall Street Journal.

People can set up donor-advised funds at a charitable organization or a fund set up by a commercial institution, take a tax deduction, and then decide where the money should be directed.

Congress ordered the IRS to take a look at the funds last year, and said it was considering new legislation to prevent abuses by donors. An official at the Council on Foundations told the newspaper that some people fear that Congress will eliminate donor-advised funds or make them unattractive to donors.

Donor-advised funds hold at least $15.5-billion in assets, according to The Chronicle of Philanthropy’s most-recent survey on the holdings of such funds.

(A paid subscription is required to read these articles. Short-term passes are available for the Chronicle article.)