Paul Caron has published an article on the TaxProf Blog, titled “A Majority Of Donor-Advised Funds Send Little/No Money To Charity Every Year,” which discusses one of the first studies ever to look at donor-advised funds on a micro level and possible effects upon legislation. The article begins as follows:
One of the first studies ever to look at donor-advised funds on a micro level has found that every year, 37 percent on average don’t distribute any money and over half give less than 5 percent of their assets. The findings are fueling demands for passage of a Senate bill that would spur donors to do more to channel their money out of the funds faster.
The study of donor-advised funds at Michigan community foundations found that in 2020, 35 percent of those funds distributed no money, 22 percent distributed less than 5 percent of their assets, and 43 percent distributed more than 5 percent. Across the entire four-year period covered in the study — 2017 through 2020 — 86 percent of the advised-fund accounts gave money to working charities.
Click here to see the full article: “A Majority Of Donor-Advised Funds Send Little/No Money To Charity Every Year”
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal
Wealth Strategies Journal 