Taxes on Taxable Distributions from Donor Advised Funds under Section 4966

The TEGE Exempt Organizations Council is submitting testimony on behalf of its members opposing the proposed regulations. They argue that the regulations are overly restrictive, unnecessarily expand the scope of excise taxes to non-DAFs, and create unnecessary complexity for the nonprofit sector.

Renaissance Charitable Foundation Inc., a sponsoring organization for Donor Advised Funds (DAFs), opposes the proposed regulations because they create confusion, increase administrative costs, and lack a sufficient transition period. The organization argues that the regulations overreach by broadening the definition of DAFs and requests the removal of the "Personal Investment Advisor" definition.

The Rose Community Foundation, a nonprofit organization serving the Denver/Boulder metropolitan area, is requesting the opportunity to provide testimony at a public hearing. Their testimony will focus on the impact of the proposed regulations on pooled and fiscally sponsored funds, philanthropy, and the nonprofit sector.

The Greater Toledo Community Foundation is requesting the opportunity to provide in-person testimony at a public hearing regarding proposed regulations on taxes for Donor Advised Funds. The organization intends to discuss the reclassification of funds, the definition of a "distribution," and the effective date of the regulations.

The North Texas Community Foundation is requesting to testify against the proposed regulations, arguing that taxing the fees and expenses of Donor Advised Fund (DAF) distributions would reduce the funds available for local charities. They highlight that investment advisors are not "warehousing" funds and that taxing professional fees (such as legal costs to defend donor intent) would negatively impact community support.

The Greater Kansas City Community Foundation is requesting to testify in person regarding the proposed regulations on taxes for Donor Advised Funds. The organization argues that proper fees and expenses should not be considered taxable distributions and expresses concerns regarding the implications of "implied knowledge" and the effective date of the regulations.

The National Christian Charitable Foundation, Inc. (NCCF) is requesting the opportunity to provide oral testimony at a hearing regarding proposed regulations on taxes for taxable distributions from Donor Advised Funds. The CEO outlines the specific topics she intends to discuss, which include the organization's background, the role of DAFs in generosity, and key concerns with the proposed regulations.

The Madison Community Foundation is requesting to testify against the proposed regulations regarding taxes on taxable distributions from Donor Advised Funds. They argue that the regulations will place a disparate burden and administrative weight on small and medium-sized community foundations, particularly concerning "advisory privileges" and compliance requirements.

Sedreddine & Whoriskey, LLP, a law firm representing 501(c)(3) public charities, opposes the proposed regulations because they overly expand the definition of Donor Advised Funds (DAFs). They argue the rules could unnecessarily capture fiscal sponsorships and other restricted funds, which would hinder charitable programming, and they request specific exceptions and a prospective applicability date.