Activist Philanthropist and IACG member Melanie Lundquist recently penned an op-ed in the Chronicle of Philanthropy in support of charitable giving reform that would ensure donations made to a family foundation or donor-advised funds get to working charities in a timely manner.
Read excerpts from Melanie’s piece below:
“Among those hit hardest by the Covid-19 pandemic were America’s nonprofits. With a trillion dollars sitting untouched — money that could be used to support charities and the people those charities serve — that should never happen. But unfortunately, the current tax laws do not sufficiently incentivize the timely distribution of fully tax-deducted dollars. The tax laws that govern foundations are antiquated, stretching back to the late 1960s, reflecting society and its needs 50-plus years ago.”
“Philanthropy has such a positive impact on American society when done right. But that positive impact can be realized only if the charities and nonprofit organizations receive that money. The federal government provides incentives to donors to put money aside for giving; now the federal government needs to give them an incentive to get the money into the hands of the people who can use it for good. America will be better for it.”
“Currently, donor-advised funds have more than $140 billion set aside for future charitable gifts. That’s billions of dollars sitting on the sidelines with no assurance that they will ever benefit charities and nonprofits, which is the reason donors were able to take tax deductions in the first place.”
Find the full text of the op-ed in the Chronicle of Philanthropy here.