CalNonprofits Articles

Donor Advised Funds alert1Earlier this month, the California assembly passed AB 2936, a simple, modest transparency bill related to donor-advised funds (DAFs). Even so, it is generally believed that this is the first state law anywhere in the U.S. addressing transparency for donor-advised funds. As such it is landmark legislation, and it's important for us to get it past the finish line. To do that, we need to get it passed by two senate committees and the full senate, before it goes to the Governor to sign it into law.

The donor-advised fund (DAF) bill:

  • Establishes some definitions for donor-advised funds (not currently defined in California law)
  • Affirms the authority of the California Attorney General to require reports from donor-advised fund sponsors

Please take a moment to sign this letter letting the California state senate know that nonprofits care about this issue.

You will be asked to provide your organization's name, your name, and title, as well as your organization's logo (optional).

Background

As many nonprofits are aware, when an individual donates to a donor-advised fund — whether at a community foundation or a Wall Street firm such as Fidelity — that individual obtains an immediate tax deduction for the full amount. But there are no requirements for those funds ever to be transferred to an active nonprofit, nor is any reporting required for individual funds. Our research shows that in 2016, there were 157 DAF sponsors based in California holding $19 billion dollars in assets. The State of California forgoes taxes of $340 million each year due to tax deductions for DAFs, giving the public an interest in DAFs.

The California Association of Nonprofits (CalNonprofits) believes that DAFs are unique, valuable vehicles for donors. At the same time — like 92% of respondents to our poll last year — we believe that more transparency about donor-advised funds is appropriate.

Click here to sign on
DEADLINE: Friday, July 10, at 2pm.

As always, if you have questions, comments, criticisms, and suggestions, please feel free to connect directly with me here. And if you missed our recent eAlert with some background about donor-advised funds, you can find it here.

Jan Masaoka
CEO, California Association of Nonprofits (CalNonprofits)

Comments   

0 # Tim Clark 2020-07-02 11:30
I have a donor-advised fund, and I favor transparency.
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