Critics take aim at charitable money sitting in donor funds

Wealthy philanthropists have long enjoyed an advantageous way to give to charity: Using something called a donor-advised fund, they’ve been able to enjoy tax deductions and investment gains on their donations long before they give the money away

Wealthy philanthropists have long enjoyed an advantageous way to give to charity: Using something called a donor-advised fund, they've been able to enjoy tax deductions and investment gains on their donations long before they give the money away. These so-called DAFs set no deadlines for when the donations must reach charities; the donors themselves decide when and where the money goes. Critics complain that because DAFs provide no financial incentive to quickly donate the money, much of it ends up sitting indefinitely in the accounts rather than being distributed to needy charities. That criticism has helped drive a Senate bill that would tighten the rules for DAFs and aim to speed donations to charities. The bill, introduced by Sens. Angus King, a Maine Independent, and Chuck Grassley, an Iowa Republican, appears to be gaining bipartisan support in Congress.