The article says nay because the bill would harm donor-advised funds and smaller donors.
“Most notably, it encourages Congress to pass legislation that would force donor-advised funds to disburse money within 15 years or lose tax deductibility.” This would stifle long-term payout plans. But this rule would not apply to private foundations, which are usually significantly larger in size.
“Foundations would be unable to count the salaries and travel expenses of family members toward their annual 5% payout, even though such payments are made in service of the organization’s mission.” The article argues that this rule would limit intergenerational wealth and affect smaller donors because most foundations have less than $50M in assets.
What would the bill mean for long-term, patient giving in effective altruism, especially given the popularity of donor-advised funds?
[Question] What do you think about the “Initiative to Accelerate Charitable Giving”, a new US legislative proposal? Yay or nay?
The Left Wants a Philanthropy of the Few—Major foundations back a proposal that would force smaller donors to spend down their funds. https://www.wsj.com/articles/the-left-wants-a-philanthropy-of-the-few-11607989273
The article says nay because the bill would harm donor-advised funds and smaller donors.
“Most notably, it encourages Congress to pass legislation that would force donor-advised funds to disburse money within 15 years or lose tax deductibility.” This would stifle long-term payout plans. But this rule would not apply to private foundations, which are usually significantly larger in size.
“Foundations would be unable to count the salaries and travel expenses of family members toward their annual 5% payout, even though such payments are made in service of the organization’s mission.” The article argues that this rule would limit intergenerational wealth and affect smaller donors because most foundations have less than $50M in assets.
What would the bill mean for long-term, patient giving in effective altruism, especially given the popularity of donor-advised funds?