Treasury Department Releases Long-Overdue Study On Supporting Organizations And Donor Advised Funds

On Dec. 6, 2011, the Department of the Treasury released its Report to Congress on Supporting Organizations and Donor Advised Funds. The full report is available on the Treasury's website.

Congress directed the Treasury to conduct this study and provide a report on the results in the Pension Protection Act of 2006 and specifically requested the study to address whether the charitable deduction for contributions to supporting organizations and donor-advised funds is appropriate considering the use of such contributions by the charitable recipient or the use of such contributions for the benefit of the donor. Congress also requested the Treasury to examine whether donor-advised funds should be required to distribute a specified amount (based, perhaps, on the income or assets of the fund) and whether the donor's advisory rights over a donor-advised fund are consistent with the treatment of contributions as completed gifts. In addition, Congress asked the Treasury to