Congressional Coalition Opposes DAF Restrictions

A bipartisan group that includes 11 members of the House Ways & Means Committee have taken a strong stand in favor of protecting tax rules that stimulate giving through donor-advised funds. 

The lawmakers this month sent a “Dear Colleague” letter to their colleagues that outline the benefits of DAFs and the benefits they bring to communities across the U.S.

“Clearly, DAFs have become an incredibly important tool for charitable giving in communities large and small across the nation,” the lawmakers wrote in the letter. “That’s why it’s important to make sure we protect this important form of philanthropy from some recent policy proposals that would put limits on how they’re used.”

The letter expresses concerns about recent proposals that would place unnecessary restrictions on DAFs, including the Accelerating Charitable Efforts (ACE) Act. 

It cites a 2021 survey by the Community Foundation Public Awareness Initiative that found that DAFs at 84 U.S. community foundations granted more than $6.7 billion in 2020 — an increase of nearly $2 billion, or 41 percent, from the previous year.