Pension Protection Act of 2006
On Aug. 17, 2006, President Bush signed into law a bill that will impact grantmakers and donors.
The new charitable provisions, part of the Pension Protection Act of 2006 (H.R. 4), include the
first comprehensive regulation of donor-advised funds, as well as reforms or incentives that will
affect private foundations, supporting organizations and individual donors.
Latest Updates
On Jan. 10, 2007, the Treasury Department and the Internal Revenue Service (IRS) issued guidance on the
limited IRA charitable rollover provision signed into law in the Pension Protection Act of 2006.
New Definition of Donor-Advised Fund
The new charity law defines a donor-advised
fund as a fund that possesses all three of the following characteristics:
- It is separately identified with reference to the contribution of
a donor or donors (for example, the fund is named after a donor or persons
related to the donor, or the organization's books track contributions to the
fund with respect to the specific donor(s)).
- It is owned and controlled by a sponsoring organization.
- The donor or a person appointed by the donor has, or must reasonably expect to have, the
privilege of providing advice with respect to the fund’s investments or
distributions.
What the New Charities Law Means To You
The provisions are many and complex, but here's a brief overview of what the new law could mean for you.
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