AFP Memphis membership,
The AFP board strives to keep you up to date on items that intersect between government relations and fundraising. Please review the email and attachment for more information on AFP's comments regarding regulations related to donor-advised funds.
In November, the U.S. Department of the Treasury released the first in what is expected to be a series of long-awaited regulations on donor-advised funds (DAFs). This proposed regulation would provide guidance regarding DAFs and taxable distributions. The proposed regulations generally would apply to community foundations and other charitable organizations that maintain one or more DAFs, and to individuals involved with the DAFs, including donors, donor-advisors, and certain fund managers. The guidance seeks to offer clarity on additional definitions of terms, how to determine if a fund can be identified as a separate entity, and how to establish if a donor has advisory privileges, among other issues.
This regulatory attention has been expected as DAFs have grown; grants from DAFs now amount to around 10% of all charitable giving and are expected to keep growing. AFP has joined sector partners in submitting comments outlining some positive changes being proposed and some concerns with these proposed regulations. Much of this work to inform these comments comes from the previous Donor Advised Funds Working Group of the U.S. Government Relations Committee chaired by Lisa Chmiola with the support of Nancy Brown.
AFP will continue to engage the full U.S. Government Relations Committee, the AFP Global board, and other groups and member constituents, on future proposed rules and legislation.
Please find attached the comments AFP has made to the US Treasury Department.
In addition to AFP’s comments, if you as an individual or on behalf of your organization want to submit additional comments, the deadline is February 15, 2024.
You can submit a formal request using the attached URL.
Here is a link to the Letter from AFP to the IRS: https://files.constantcontact.com/df708663201/dee7fd52-bc7e-40a6-bd04-bf459feda636.pdf
Andrea Hill, your AFP Memphis Government Relations and Advocacy Chair
Chief Development & Partnerships Officer
Tennessee Nonprofit Network