Charitable giving reforms gain momentum across philanthropic sector
WASHINGTON, DC – Today, six new members from across the philanthropic sector joined the Initiative to Accelerate Charitable Giving (IACG): Focus for Health Foundation, Graves Foundation, Minnesota Council of Nonprofits, Segal Family Foundation, Edward Skloot, and Telluride Foundation.
These new members include nonprofits, foundations, and others from across the philanthropic sector who join the growing number of voices supportive of federal policy reforms that address the problem with our charitable giving laws.
Jennifer Shore, Executive Director of Focus for Health Foundation, said: “The status quo of DAFs is not only ineffective, but it also hampers philanthropy’s efforts to affect change in the world by stifling funds to worthy non-profits. Without these changes, the wealth of the richest Americans continues to increase while marginalized communities continue to struggle.”
Bill Graves, President of Graves Foundation, said: “IACG’s efforts to close tax loopholes will play a critical role in quickly moving charitable funds to working nonprofits across the country. IACG’s initiative will encourage both the Graves Foundation and foundations and donor advised funds across the country to focus our attention and resources away from private control and towards community.”
Jon Pratt, Executive Director of Minnesota Council of Nonprofits, said: “The U.S. is a generous nation when it comes to charitable contributions, but our tax laws have not kept up with changes in financial structures, so we see a decreasing percentage of charitable funds actually put to work. Minnesota nonprofits support the Initiative to Accelerate Charitable Giving’s policy reforms because it would help make more resources that have already been subsidized directly available to community organizations addressing urgent public needs.”
Barry Segal, Founder of Segal Family Foundation, said: “It is the responsibility of wealthy people to use their money intelligently to do more good in this world. DAFs were intended to grow charities, instead they have become another elaborate loophole that allows some rich people to hoard their money. IACG’s policy framework will help innovative leaders leverage the work they do to improve lives and the state of world.”
Edward Skloot, Long-Time Philanthropy and Working Charity Advisor, said: “Charitable intermediaries have an important role to play in philanthropy. One thing they are not are free, long-term parking facilities. New rules are needed to move assets out of the garage and to accelerate much-needed funding for working charities. The Initiative to Accelerate Charitable Giving’s proposals are important moves in the right direction.”
Paul Major, President and CEO of Telluride Foundation, said: “Community foundations play a critical role in tackling pressing and complex issues on a local level. Hunger, climate change, racial justice, education, the digital divide, and housing are among issues that need to get addressed now and locally. Donor advised funds are a great tool for community foundations and have provided huge opportunities for local communities. The Initiative to Accelerate Charitable Giving’s reforms recognize the unique role played by community foundations and would unlock critical resources that allow them to further their missions and tackle some of society’s biggest challenges. This is how philanthropy should function: addressing today’s compounding issues rather than storing money over time.”
charitable tax benefits and benefits to charities. Specifically, IACG proposes the following reforms:
- For private foundations, close loopholes to better ensure that distributions qualifying for the payout requirement are available for use by working charities; and incentivize greater payout through reforms to the excise tax.
- For donor-advised funds (DAFs), adopt measures to make sure that DAF accounts are distributed to working charities within a reasonable period of time.
- For individuals, incentivize greater giving by expanding and extending the new non-itemizer charitable deduction in a cost-effective way.
About the Initiative to Accelerate Charitable Giving
The Initiative to Accelerate Charitable Giving (IACG) is a broad coalition of philanthropists, leaders of major foundations, non-profits and others who represent a broad spectrum of interests across philanthropy. IACG is dedicated to promoting common-sense, non-partisan federal policy reforms that close tax loopholes and re-establish charities as the center of charitable giving laws. For more information, visit www.acceleratecharitablegiving.org.