Charities Ask for Rare Do-Over on IRS Donor-Advised Fund Rules

Opponents of the IRS proposal on donor-advised funds want the agency to withdraw and propose the rules again because they say the guidance oversteps the intentions of the law.

The controversial November 2023 proposed regulations received widespread criticism from practitioner groups and community foundations, which often sponsor donor-advised funds. Community foundation leaders from across the US also recently asked IRS officials to withdraw and propose the rules again with changes, including narrowing the definitions of the funds and donor advisers, and altering the anti-abuse rule.

“The rules set forth in the proposed regulations are highly vulnerable to legal challenge,” Alex ...