DonorsTrust President and CEO Lawson Bader, in his latest column for RealClearPolicy, explains why donor-advised funds (DAFs) are important, especially during times of war and economic downturn.
As he explains, DAFs serve both as rainy-day funds and a nimble, unfettered way to deliver resources quickly. Here is an excerpt from the column; click here to read the full piece:
“DAFs are a mission-critical charitable tool, especially during times of crisis. Because red tape around these charitable-investment accounts is intentionally limited, they are a quick, effective way to donate to charity. As often happens with a perceived golden goose, however, lawmakers want to limit DAFs, thus tarnishing a rich history of laying charitable golden eggs.
Congress has introduced the Accelerating Charitable Efforts (“ACE”) Act. If enacted, the bill would impose costly regulations on a unique financial tool at a time when charitable resources need to move quickly, not only to preserve an independent republic and save lives, but to address what comes next.
The ACE proposal would force DAF accountholders to pay out funds now, thus depleting rainy-day charitable dollars for future problems. Many open a DAF because they have a unique financial situation — a received inheritance, a sold business, an unexpected bonus — and take advantage of the tax benefits to set aside charitable capital now that can only be used to benefit a charity later.”
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