By Casey Hale on 2/16/2021 12:42 PM

There is a widely held but misguided belief that a donor advised fund (“DAF”) is prohibited from making distributions to a private foundation. While the Pension Protection Act of 2006 imposed a myriad of restrictions on DAFs, it did not completely proscribe distributions from a DAF to a private foundation so long as the DAF sponsoring organization undertakes certain expenditure responsibility measures. Moreover, a DAF may make distributions to a private foundation even when a donor or donor advisor to the DAF is also a disqualified person with regard to the recipient private foundation.

Click here to read the complete White Paper.

By Casey Hale on 12/20/2012 4:03 PM

A recent article published by The Chronicle of Philanthropy suggests that the nonprofit sector's efforts to convince the White House to preserve the charitable deduction may have paid off. The article indicates that the budget proposal the Obama administration gave to the Republicans earlier this week appears to preserve more generous write-offs for charitable deductions versus other deductions, such as mortgage interest, state taxes. etc. While White House officials have not yet confirmed the details, some Washington insiders are reporting that Obama's proposal preserves the charitable deduction's current rates. Of course, with all of the back and forth proposals, only time will tell where charitable deduction will end up. But still it is encouraging...
By Casey Hale on 12/14/2012 6:27 AM

For more in-depth information on the ongoing battle over the the charitable deduction and how it is affecting current gifts, the Nonprofit Law Prof Blog posted an entry yesterday that is definitely worth reading.

Also, here is a panel on Fox News discussing the fiscal cliff and the charitable deduction:


And on the other end of the media spectrum, here is MSNBC on the topic as well:


By Casey Hale on 12/13/2012 10:51 AM

The Washington Post published a story today covering the Obama Administration's struggle to convince the nonprofit sector to accept the administration's proposed curtailment of the charitable deduction. Needless to say, the White House is feeling significant push back from the nonprofit sector. Here's some of the key excerpts:

The White House and the nation’s most prominent charities are embroiled in a tense, behind-the-scenes debate over President Obama’s push to scale back the nearly century-old tax deduction on donations that the charities say is crucial for their financial health.

“It’s all castor oil,” said Diana Aviv, president of Independent Sector, an umbrella group representing many...
By Matt Brown on 2/18/2011 8:34 AM

The Sum of its Parts: Reforming Charitable Donations of Partial Interests

Sarah B. Lawsky (UC-Irvine)


This essay analyzes the tax rule that permits a deduction for donating property to a charity, but denies a deduction for donating a partial interest in that same property. For example, someone who donates a building to a charity may be permitted to take a deduction for the fair market value of the building. But if instead of donating the entire building, that person permits the charity to use the building rent-free for a year, he cannot take any deduction at all. Drawing on insights from modern finance, the essay shows that the only reason Congress gave for enacting the partial interest provision does not actually provide a way to distinguish between partial interests and whole interests, and that other possible justifications for the provision are also unconvincing. The partial interest ban is at best unnecessary and at worst inconsistent with other areas of tax law, and it should therefore be repealed.

By Matt Brown on 5/11/2010 4:10 PM

The site listed below is a new, but growing, collection of excellent commentaries on planned giving ethics issues.