Edward A. Zelinsky: A Response to the Initiative to Accelerate Charitable Giving (January 28, 2021)

Edward A. Zelinsky, of the Benjamin N. Cardozo School of Law at Yeshiva University, has published an article in Tax Notes. His article, titled “A Response to the Initiative to Accelerate Charitable Giving,” begins as follows:

The Initiative to Accelerate Charitable Giving describes itself as “a broad coalition dedicated to promoting common-sense, nonpartisan charitable giving reforms.”1

Among its proposals, the initiative would tighten and expand the provisions of the IRC relative to private foundations and donor-advised funds.2 The initiative performs an important public service by highlighting a topic the Biden administration and the 117th Congress should address and by advancing important proposals.

In this article I respond to the initiative, agreeing with much (but not all) of its perspective and arguing that the rules applied to private foundations should also govern donor-advised funds. Considerations of fairness and efficiency counsel that similar persons and entities should be taxed and regulated similarly. Donor-advised funds are functional substitutes for private foundations and should be treated equivalently by the law. Consequently, the code’s minimum distribution requirement3 and its excise tax on net investment incomes,4 now applicable just to private foundations, should apply to donor-advised funds as well.

To see the full article, click here: “A Response to the Initiative to Accelerate Charitable Giving” by Edward A. Zelinsky.

Posted by Elise Kim, Managing Associate Editor, Wealth Strategies Journal.

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