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> allowing them control of where they donate They are also not required to disclose how the charitable dollars are spent. You don't see the problem here? How

> allowing them control of where they donate They are also not required to disclose how the charitable dollars are spent. You don't see the problem here? How do we, as taxpayers, know the money is even being spent for real charitable purposes? See for example this story: https://www.telegraph.co.uk/news/2018/06/14/new-york-attorney-general-sues-close-trump-foundation-misuse/ https://www.telegraph.co.uk/news/2018/06/14/new-york-attorne...

woolvalley 8y ago
The same way the IRS audits donations and non-profits in general? How is this any different from a person directly donating $X dollars other than the ability to sit and wait and think about it? Do I get to see what a private citizen donates to directly unless that organization that receives the money discloses who donated how much?
- petilon 8y ago
  > How is this any different from a person directly donating $X dollars You have to disclose the recipient of the donation to IRS. That's the difference. These "Donor Advised Funds" apparently don't have to report disbursements.
  - deleted 8y ago
    [deleted]
  - astura 8y ago
    I don't think that's the case. > And because organizations that manage D.A.F.s are not required to report which funds give money to which causes, it is impossible to know how much money individual donors are giving away to nonprofit organizations. That doesn't mean the donor advised fund isn't required to report the givings the fund makes, it means it isn't required to report who gave to whom. I would be shocked if the DAF managers aren't required to report spending/giving, because they are also 501c3 themselves.
kharms 8y ago
>You don't see the problem here? How do we, as taxpayers, know the money is even being spent for real charitable purposes? While you are unable to audit any given donor, you are able to audit most DAF program providers by reading their 990 tax form. Here is an example for Charles Schwab, mentioned in the article. https://www.guidestar.org/profile/31-1640316 https://www.guidestar.org/profile/31-1640316 Even if the 990 is not publicly published, it is required by the IRS and can be audited. >See for example this story: https://www.telegraph.co.uk/news/2018/06/14/new-york-attorne.. https://www.telegraph.co.uk/news/2018/06/14/new-york-attorne.... This is less likely to happen with a DAF program because they are managed by 3rd parties with reputations to protect. A properly ran DAF program will research and vet all grantee organizations prior to making a gift, and can (and will) reject donor grant requests if they are found to violate the law/DAF mission.
- petilon 8y ago
  If the donor's identity is kept hidden then abuses such as "quid pro quo" donations become possible (See https://www.classy.org/blog/what-you-need-to-know-about-quid-pro-quo-donations/ https://www.classy.org/blog/what-you-need-to-know-about-quid... ) i.e., the donor could make an arrangement such as, "I'll direct my DAF to donate $X million to you if you then use that money towards buying $4X worth of services from my company."
astura 8y ago
The Trump Foundation isn't a donor advised fund so that article is irrelevant.

woolvalley 8y ago

The same way the IRS audits donations and non-profits in general? How is this any different from a person directly donating $X dollars other than the ability to sit and wait and think about it? Do I get to see what a private citizen donates to directly unless that organization that receives the money discloses who donated how much?

petilon 8y ago
> How is this any different from a person directly donating $X dollars You have to disclose the recipient of the donation to IRS. That's the difference. These "Donor Advised Funds" apparently don't have to report disbursements.
- deleted 8y ago
  [deleted]
- astura 8y ago
  I don't think that's the case. > And because organizations that manage D.A.F.s are not required to report which funds give money to which causes, it is impossible to know how much money individual donors are giving away to nonprofit organizations. That doesn't mean the donor advised fund isn't required to report the givings the fund makes, it means it isn't required to report who gave to whom. I would be shocked if the DAF managers aren't required to report spending/giving, because they are also 501c3 themselves.

kharms 8y ago

>You don't see the problem here? How do we, as taxpayers, know the money is even being spent for real charitable purposes? While you are unable to audit any given donor, you are able to audit most DAF program providers by reading their 990 tax form. Here is an example for Charles Schwab, mentioned in the article. https://www.guidestar.org/profile/31-1640316 https://www.guidestar.org/profile/31-1640316 Even if the 990 is not publicly published, it is required by the IRS and can be audited. >See for example this story: https://www.telegraph.co.uk/news/2018/06/14/new-york-attorne.. https://www.telegraph.co.uk/news/2018/06/14/new-york-attorne.... This is less likely to happen with a DAF program because they are managed by 3rd parties with reputations to protect. A properly ran DAF program will research and vet all grantee organizations prior to making a gift, and can (and will) reject donor grant requests if they are found to violate the law/DAF mission.

petilon 8y ago
If the donor's identity is kept hidden then abuses such as "quid pro quo" donations become possible (See https://www.classy.org/blog/what-you-need-to-know-about-quid-pro-quo-donations/ https://www.classy.org/blog/what-you-need-to-know-about-quid... ) i.e., the donor could make an arrangement such as, "I'll direct my DAF to donate $X million to you if you then use that money towards buying $4X worth of services from my company."

astura 8y ago

The Trump Foundation isn't a donor advised fund so that article is irrelevant.