I find it hard to come up with an argument supportive of this proposal, but as one clarification: the proposal is that donors could choose to create a DAF with no time limit, but where the donor receives only capital gains tax benefits at the time of donation, and income tax benefits at the time of disbursement. Many large donors get most of their income through capital gains, so maybe aren’t too bothered by this, and small donors might receive some benefit by being able to save up their donations for several years and then receive income tax benefits all at once when they disburse. (This would be helpful if they normally don’t donate enough per year to get over the standard deduction but would be able to get over it after saving up donations for several years.)
My guess is that this is mostly harmful for people with low six-figure incomes who want to donate a substantial portion of their incomes and wait > 15 years.
I find it hard to come up with an argument supportive of this proposal, but as one clarification: the proposal is that donors could choose to create a DAF with no time limit, but where the donor receives only capital gains tax benefits at the time of donation, and income tax benefits at the time of disbursement. Many large donors get most of their income through capital gains, so maybe aren’t too bothered by this, and small donors might receive some benefit by being able to save up their donations for several years and then receive income tax benefits all at once when they disburse. (This would be helpful if they normally don’t donate enough per year to get over the standard deduction but would be able to get over it after saving up donations for several years.)
My guess is that this is mostly harmful for people with low six-figure incomes who want to donate a substantial portion of their incomes and wait > 15 years.