On June 9, 2021, legislation was introduced in the US Senate which could be the most significant change to donor advised funds since they were created 80 years ago.
Senators Angus King (I-ME) and Chuck Grassley (R-IA) introduced the Accelerating Charitable Efforts Act (or ACE Act), which includes changes to donor advised funds. The legislation was previewed in a New York Times article, How Long Should It Take to Give Away Millions?, published this morning.
According to the Council on Foundations, which the Community Foundation is a member, they believe “the changes in the bill will not achieve the ends we are all seeking to realize – greater support for nonprofits and communities, now and in the future, as we work together to advance the greater good.”
At this point in time, the Community Foundation is keeping an eye on this legislation and will be consulting with the national Council on Foundations, statewide Alliance of Illinois Community Foundations, and our local professional advisors to determine the impact that this legislation will have on current and future donor-advised funds.
Keep in mind that this legislation has only been introduced — it’s a long way from passage. In addition, any new laws passed could look significantly different from this proposed legislation. If you are interested in reviewing the proposed legislation, view the bill (PDF).