New IRS Regulations for Donor-Advised Funds: Key Provisions, DAF Exceptions, Taxable Distributions and Expenditures
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Estate Planning
- event Date
Tuesday, February 6, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
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This CLE/CPE webinar will provide estate planners and tax practitioners guidance on key provisions and the impact of recent proposed IRS regulations for donor-advised funds (DAFs). The panel will discuss critical provisions of these regulations, the tax treatment of distributions and expenditures, DAF exceptions, and other key items stemming from these regulations and their impact on estate and tax planning.
Prior to founding Mill Law Center, Mr. Mill was a partner at Adler & Colvin, a boutique law firm serving non-profits and their donors. He continues to advise a broad range of non-profit organizations, including everything from the most innovative start-ups to some of the largest, most established foundations and charities around the country. Mr. Mill's philosophy is to apply his years as a lawyer and educator to provide clear, actionable legal advice and support to non-profits. His areas of expertise include private foundations, public charities, impact investment, social enterprise, and charitable gift planning.
Mr. Takagi is a Principal at NEO Law Group, Contributing Publisher of the Nonprofit Law Blog, and a P/T Lecturer at Columbia University. He has represented over 800 nonprofit organizations on corporate, tax, and charitable trust law matters. Mr. Takagi is a popular writer on nonprofit legal topics and has been published by The New York Times, The Nonprofit Quarterly, The Chronicle of Philanthropy, The Nonprofit Times, Taxation of Exempts, EO Tax Journal, and ALI-ABA. He is also a popular speaker who has presented at conferences for Independent Sector, BoardSource, the National Association of Attorneys General / National Association of State Charity Officials, CalNonprofits, Net Impact, the American Bar Association, the Western Conference on Tax Exempt Organizations (WCTEO), Georgetown Nonprofit Governance, the Northern California Planned Giving Council, the National Network of Fiscal Sponsors, and numerous local and regional bar and CPA associations. In addition, Mr. Takagi has been a regular contributor to Tony Martignetti Nonprofit Radio since 2010.
On Nov. 13, 2023, the IRS released proposed regulations providing guidance on tax rules relating to DAFs. These regulations, if promulgated, will have a significant impact on estate and tax planning, forcing estate planners and tax professionals to have a firm understanding of these tax rules to determine the best course of action and available options for charitable giving as part of an estate plan.
DAFs allow privacy, an immediate tax deduction, and create planning opportunities. DAFs facilitate the "bunching" strategy. Taxpayers can front-load contributions just before retirement or make a large deductible contribution in a year with extraordinary income. A DAF is an account that is maintained by a public charity and funded by contributions from donors. The donor or donor advisor "advises" the charity on investments or disbursements to be made.
The recent regulations add special rules, including an excise tax that governs transactions and benefits by donors, advisors, and other persons, and also rules to address distributions from DAFs, including “taxable distributions.” In addition, the regulations also expand the definition of certain terms that clarify the scope of accounts treated as DAFs and the distributions constituting taxable distributions.
Listen as our panel discusses key provisions of these regulations, the tax treatment of distributions and expenditures, DAF exceptions, and other key items stemming from these regulations and their impact on estate and tax planning. The panel will also discuss the framework for structuring DAFs and their use as an estate planning tool and other options available to estate planners.
- Overview of DAFs pre-regulations
- The role of DAFs from a giving and estate planning perspective
- How the regulations would change considerations for donors
- The single identified organization DAF exception
- How the regulations would change permissible DAF distributions
- Possible future regulations and laws
The panel will discuss these and other key issues:
- What constitutes a DAF?
- Utilizing a DAF as an estate planning and charitable giving tool
- Sponsoring and managing a DAF for charities
- What a single identified organization fund (not a DAF) can and can’t do
- What are the types of sponsoring organizations and considerations of each?
- What are the main issues raised by critics of the regulations?
- What may future DAF regulations cover?
Learning Objectives
After completing this course, you will be able to:
- Understand the potential impact of recent IRS regulations for DAFs
- Identify sponsoring organizations
- Determine if a DAF may benefit an estate plan
- Recognize the pitfalls of establishing a DAF
- Ascertain best contribution reporting practices
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.
Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
