The Tax Law of Private Foundations, 5th Edition

CHAPTER SIXTEENDonor-Advised Funds

• § 16.1 Basic Definitions
• § 16.3 Types of Donor Funds
• § 16.9 Statutory Criteria
• § 16.12 Tax Regulations
  • (f) Fidelity Gift Fund Comments
• § 16.13 DAF Statistical Portrait
• § 16.14 Criticisms and Commentary

§ 16.1 BASIC DEFINITIONS

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For additional and updated statistics, see § 16.13.

§ 16.3 TYPES OF DONOR FUNDS

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§ 16.9 STATUTORY CRITERIA

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A lawsuit has been filed against an organization sponsoring donor-advised funds, alleging that the organization sold stock contributed for a fund despite having promised it would hold the stock and sell it gradually as the securities appreciated in value (Fairbairn v. Fidelity Investments Charitable Gift Fund, Case No. 3:18-cv-4881 (Aug. 10, 2018)). The sponsoring organization's position is that it is the organization's policy to sell securities immediately on receipt and that the plaintiffs were aware of the policy. A commentary on this litigation states that the case is a “challenge to how the funds are becoming the dominant charitable behemoths in the United States” and “has the potential to cool a fast-growing area of charitable giving” (Sullivan, “Lawsuit Could Cool a Fast-Growing Way of Giving to Charities,” New York Times, May 31, 2019).

§ 16.12 TAX REGULATIONS

(f) Fidelity Gift Fund Comments

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¹²³An organization ...