Bill > S1981

This bill, the Accelerating Charitable Efforts (ACE) Act, proposes several key changes to the rules governing donor-advised funds (DAFs), which are charitable accounts that allow donors to claim an immediate tax deduction for contributions but defer the distribution of those funds to charities. Specifically, the bill would: 1) Impose new restrictions on the deductibility of contributions to non-qualified DAFs, including requiring that any contributed property be sold for cash and that the deduction be limited to the amount of qualifying distributions made from the fund; 2) Establish a 14-year payout requirement for "qualified" DAFs and a 49-year payout requirement for other non-qualified DAFs; 3) Disallow private foundations from counting distributions to DAFs as qualifying distributions for their own minimum payout requirements; 4) Change how contributions from DAFs are treated for purposes of determining a recipient organization's public support; and 5) Provide an exemption from the excise tax on investment income for private foundations that make significant qualifying distributions or have a limited duration. The goal of these provisions is to encourage more timely distribution of charitable funds from DAFs to active nonprofits.

Budget and Finance

https://www.congress.gov/bill/117th-congress/senate-bill/1981/all-info