The Treasury Department and Internal Revenue Service released long-delayed proposed regulations seeking to provide guidance on donor advised funds (DAFs). These include proposed definitions for who or what qualifies as a DAF, donor, and donor-advisor, as well as exceptions to the definition of a donor advised fund. Included in the definition of DAFs would be some giving circles, field of interest funds, and other committee funds. The draft regulations also propose an “anti-abuse rule” meant to deter donors from using DAFs to avoid excise taxes on donations to individuals. Here are analyses of the proposed rules from three law firms: BakerHostetler; Miller & Chevalier; Patterson Belknap.
The Treasury Department also announced on January 9th that the comment period for proposed regulations on Donor Advised Funds has been extended to Feb. 15, 2024. The original due date had been January 16th. The government invites interested parties to submit public comments by February 15, 2024.