Attention Professional Advisors:
It has come to our attention that the December 2011 issuance by the Department of the Treasury of its Report to Congress on Supporting Organizations and Donor Advised Funds (the "Report"), as mandated pursuant to section 1226(a) of the Pension Protection Act of 2006, unfortunately has been a relatively well kept secret. Although it is no longer "new news," it is good news, so we want to share it with our professional advisor network. Here is a link to the full Report. The Council on Foundation’s (COF), our industry trade association, has issued a shorter summary most applicable to community foundations. Click here to access the COF summary.
No new legislative changes or reforms are recommended by the Department of the Treasury in the Report. The 109-page Report contains a summary of the status of federal tax law treatment of charities, supporting organizations and donor advised funds, a history of the development of donor advised funds, a summary of the public comments, empirical data and analysis of supporting organizations and donor advised funds, and finally, in the last chapter, considers important donor advised funds questions for deduction rules, required payouts, investments, and self dealing.
As a sponsoring organization of donor advised funds, CICF is very pleased that there is clarity on these issues and that no new laws or onerous rules have been imposed. Donor advised funds remain the most flexible, most popular and most convenient charitablevehicle available to your clients. Please call us at 317.634.2423 if you have questions or would like to discuss the option of a donor advised fund for you or your clients.