Comment from Community Initiatives
Community InitiativesOpposeAdvocacy
Summary: Community Initiatives, a nonprofit fiscal sponsor, opposes the proposed regulations because they could unintentionally classify fiscal sponsorship accounts as donor-advised funds (DAFs). They argue that these rules would create significant administrative burdens and risks for fiscal sponsors, potentially disrupting their ability to support community-driven charitable projects.
Community Initiatives, a national nonprofit fiscal sponsor, believes several components of the proposed regulations could significantly disrupt the ability of United States-based charitable organizations to engage in fiscal sponsorship, a community-driven practice that supports charitable activities. Please see the attached official comments from Community Initiatives on the Department of the Treasury and the Internal Revenue Service's notice of proposed rulemaking regarding "Taxes on Taxable Distributions from Donor Advised Funds Under Section 4966" (REG-142338-07).