Bill > HR6595

This bill, the Accelerating Charitable Efforts (ACE) Act, proposes several changes to the rules governing donor-advised funds (DAFs) and private foundations: 1. It places new restrictions on the tax deductibility of contributions to non-qualified DAFs, requiring that any property contributed be sold and the proceeds distributed as a "qualifying distribution" before the taxpayer can claim a deduction. For contributions to qualified DAFs and qualified community foundation DAFs, the deduction is limited to the amount of gross proceeds received from the sale of any non-publicly traded assets. 2. It imposes a 50% excise tax on any portion of a DAF contribution (other than a qualified community foundation DAF) that is not distributed in a "qualifying distribution" within 6 months after the end of the 14th or 49th taxable year following the contribution, depending on the type of DAF. 3. It disallows private foundations from treating administrative expenses paid to disqualified persons as qualifying distributions for purposes of meeting the annual minimum distribution requirement. 4. It prohibits private foundations from treating distributions to DAFs as qualifying distributions, and requires them to report information about such distributions. 5. It modifies how contributions from DAFs are treated for purposes of determining a charity's public support status and contribution limitation rules. 6. It exempts certain private foundations from the excise tax on investment income if they make significant qualifying distributions. 7. It exempts certain limited-duration private foundations from the excise tax on investment income altogether.

Budget and Finance

https://www.congress.gov/bill/117th-congress/house-bill/6595/all-info