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Donor-advised funds, which allow donors to store money in a private account and have it directed to charities without having to set up a private foundation, are a popular way to donate in the US.
They're also a hot topic in Canada, where they're being criticized for taking advantage of tax breaks and loopholes, and in the US, where they're being called for more transparency and accountability, per a Saturday Seminar article in Nonprofit Policy Reform.
Donor-advised funds were first introduced in the US in the 1930s, but have grown in popularity in recent years, with $230 billion in assets and $52 billion in distributions to charities as of 2022, per the National Philanthropic Trust.
The problem, critics say, is that the funds are stored indefinitely, meaning they're not made available to charities as quickly as they should be.
There are two types of DAFs: one that would require funds to be distributed within 15 years and another that would offer immediate tax benefits for funds distributed within 50 years.
The proposed Accelerating Charitable Efforts (ACE) Act, introduced in 2021, would do two things: It would require funds to be distributed within 15 years and offer immediate tax benefits for funds distributed within 50 years, while also imposing minimum annual distribution requirements similar to
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Social Entrepreneurship
Spotlight
Social Enterprises: Key to Enhancing a Nation’s Health
Glasgow Caledonian University (GCU) has launched a series of noteworthy research projects to learn if social enterprises can help Scotland lose its “sick man of Europe” label and boost the nation’s overall health.