Notice 2017-73

Chuck Feeny Jr. opposes the proposed rule change regarding the transfer of funds to donor-advised funds to meet qualifying distributions. He argues that the change would undermine his specific philanthropic strategy of investing funds for future, more effective charitable use and could discourage future donations to private foundations.

Wendy Nacht argues that transfers from private foundations to Donor-Advised Funds (DAFs) should be treated as "qualifying distributions" under Section 4942. She contends that changing the rules would be unfair to existing foundations and would unnecessarily make private foundations less attractive to donors.

John A. Motulsky argues against restricting private foundations' ability to count transfers to donor-advised funds (DAFs) as qualifying distributions. He contends that the current regulatory regime allows for efficient philanthropy, preserves donor intent, and supports long-term charitable goals without creating significant negative impacts on society.

The Philanthropy Roundtable, representing a network of charitable donors, argues that Donor Advised Funds (DAFs) are valuable and versatile tools for private foundations to achieve various philanthropic goals. They urge the Treasury and IRS to ensure that any potential regulatory changes are narrowly targeted at serious abuses and do not restrict the legitimate use of DAFs for purposes such as safety, collaboration, and efficiency.

The Meyer Memorial Trust, a private foundation, argues in favor of the continued use of donor-advised funds (DAFs). They highlight how DAFs provide essential flexibility for grantmaking, allowing them to respond to community needs, manage liquidity, and engage in collaborative funding initiatives.

The Greater Kansas City Community Foundation opposes the proposed rules for bifurcated grants and public support treatment for DAF grants, arguing they create unnecessary administrative burdens and lack clarity. They advocate for a "bright-line" Section 170 analysis that allows DAFs to cover tax-deductible portions of fundraising events and suggest that DAF grants from public charities should be treated as coming from the public charity itself.

The Bay Area Community Foundation submitted a mixed response to Notice 2017-73, opposing the Treasury's positions on ticket/grant splitting, public support limitations, and private foundation distributions. However, the organization supports the Treasury's position regarding the use of donor advised fund (DAF) grants to satisfy pledges.