IRS Regulations on Donor-Advised Funds

Donor-Advised Funds (DAFs) are charitable giving accounts established to support various causes while allowing donors to retain involvement in fund distribution. Under IRS regulations, donors receive immediate tax deductions upon contributions but cannot control funds once donated. DAFs must distribute grants to qualified charities and maintain records to ensure compliance. Donors can recommend grants from their fund, but the sponsoring organization must approve these suggestions. The IRS promotes transparency and accountability, ensuring that DAFs serve charitable purposes rather than personal interests. In essence, DAFs blend philanthropy with donor engagement.