On the Record: Charity Laws Face Changes

The staff report states that supporting organizations have been an area of significant abuse and consequently should be eliminated. It suggests that Donor-Advised Funds be used instead.

12. Restrictions on donor-advised funds
DAFs accept gifts from many different donors and take into account the donors’ suggestions on how grants of the funds should be made. DAF’s are, in effect, collections of private foundations, but they are treated like public charities — thus avoiding the private foundation limitations — because they receive funds from enough donors to meet the public-charity support tests.