The Chronicle of Philanthropy reported on the House introduction of the ACE Act by Representatives Chellie Pingree (D-ME) and Tom Reed (R-NY), among others.
Read below for excerpts from the Chronicle of Philanthropy’s story:
“A bipartisan set of tax proposals intended to speed up distributions from foundations and donor-advised funds has been introduced in the House of Representatives, raising the hopes of its backers that the legislation has momentum. The legislation was introduced by Rep. Chellie Pingree, a Democrat from Maine, with the backing of Rep. Tom Reed, a Republican from New York.”
“‘We’re in a time that we can use all the charitable giving that is potentially out there,’ Pingree said in a telephone interview. When someone gets a tax benefit for giving, that money should be distributed to charities in a reasonable amount of time, she added.”
“In addition to Pingree, two other House Democrats are also sponsors, Ro Khanna and Katie Porter, both from California. … In a statement released by Pingree’s office, Khanna noted that charities have been a lifeline for many people, especially during the pandemic. ‘However, loopholes in our current laws allow the ultrawealthy to make contributions and receive immediate tax benefits without any distribution requirements,’ Khanna said. ‘The result is that money promised to charity can sit unused for years.’”
“Aisha Alexander-Young, CEO of the Giving Gap, formerly Give Blck, said in a telephone interview that getting more money to working charities was an equity issue. Giving has become more about the tax benefits to donors and less about people in need, she says. ‘The resources are not going out the door to the nonprofits that need them, and particularly the communities that need them,’ Alexander-Young said.”
Read the full article from the Chronicle of the Philanthropy here.