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Changes to Donor Advised Funds and Private Foundations

This act modifies rules for donor advised funds (DAFs) and private foundations, affecting how charitable contributions are deducted and when funds must be distributed. The goal is to accelerate the flow of charitable donations to recipient organizations. It also changes rules regarding administrative expenses for private foundations and their support for other organizations.
Key points
Restrictions on deducting contributions to DAFs – deductions will only be allowed after the funds are actually distributed to charities.
Introduction of new DAF types: qualified DAFs (requiring distribution within 14 years) and qualified community foundation DAFs (with value limits or a 5% annual payout requirement).
Financial penalties for DAFs that fail to distribute contributions within specified timeframes (6 or 49 years, depending on the fund type).
Limitations on private foundations counting administrative expenses paid to disqualified persons as qualifying distributions.
Prohibition on private foundation distributions to DAFs being treated as qualifying distributions, unless the funds are promptly distributed further.
Exemption from investment income tax for private foundations making significant qualifying distributions (at least 7% of assets) or having a limited duration (up to 25 years).
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Expired
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Additional Information
Print number: 117_HR_6595
Sponsor: Rep. Pingree, Chellie [D-ME-1]
Process start date: 2022-02-03
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

ACE Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_6595.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-02-03.

What are the main provisions?

Key points include:

  • Restrictions on deducting contributions to DAFs – deductions will only be allowed after the funds are actually distributed to charities.
  • Introduction of new DAF types: qualified DAFs (requiring distribution within 14 years) and qualified community foundation DAFs (with value limits or a 5% annual payout requirement).
  • Financial penalties for DAFs that fail to distribute contributions within specified timeframes (6 or 49 years, depending on the fund type).
  • Limitations on private foundations counting administrative expenses paid to disqualified persons as qualifying distributions.
  • Prohibition on private foundation distributions to DAFs being treated as qualifying distributions, unless the funds are promptly distributed further.
  • Exemption from investment income tax for private foundations making significant qualifying distributions (at least 7% of assets) or having a limited duration (up to 25 years).
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Pingree, Chellie [D-ME-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Taxes