Industry Awaits an Answer on Proposed Donor-Advised Fund Regulations

Nonprofit organizations attorney Andrew Grumet was quoted in a Investment News article expressing concerns over the IRS' proposed regulations for donor-advised funds (DAFs). Mr. Grumet pointed out the mismatch between the sophisticated operations of DAF sponsoring organizations and the regulatory framework proposed, emphasizing that the regulations don't accurately reflect the realities of how these organizations operate today. This gap, he noted, highlights the disconnect between regulatory intent and application, signaling a challenging period for the DAF community as it navigates these proposed changes.

"Just as dollars flowing into DAF programs have grown exponentially in the past 15 years, so too has the level of sophistication with which sponsoring organizations operate. The mismatch between the proposed regulations and the plain facts of how sponsoring organizations operate today creates a chasm between intent and application," he said. 

READ: Industry Awaits an Answer on Proposed Donor-Advised Fund Regulations