Dec 7, 2011
Treasury Department Releases Study on Supporting Organizations and DAFs
Washington Update
Finally completing a 2005 request by Senator Charles Grassley (R-IA), the Treasury Department released their study today on how nonprofit supporting organizations and donor advised funds distribute money to charities. The report found that these groups distributed approximately 9 to 12 percent of their assets in 2006, and recommended that there NOT be any federal requirement for annual giving for supporting organizations and donor advised funds, since their giving was high compared to private foundations.
Responding to the substance of the report, Senator Grassley expressed displeasure with report calling it “superficial.” According to a Chronicle of Philanthropyarticle highlighting the report, the Senator said “There’s no information on how much money is getting to those who really could benefit from charitable work” and that Treasury “seems to be forgetting that for years, supporting organizations and donor-advised funds were on the IRS’s annual ‘dirty dozen’ list of tax scams.” In light of the Senator’s frustration, it is likely that he will call for studies from other research organizations to further examine this issue.
As recently as October of this year Senator Grassley chastised the Treasury for dragging its heels on the study and cited the Kaiser Family Foundation’s investments in the failed green energy firm Solyndra as an example of ongoing abuse.