We recently sat down with our Chief Legal Officer Jeffrey Haskell to have a timely conversation about The U.S. Treasury Department’s Greenbook for fiscal year 2024, the pending tax proposals, and the impact they may have on private foundations and donor-advised funds (DAFs). We discussed the two suggested changes to private foundation payout rules that could have far-reaching effects on how foundations pursue their missions and distribute charitable funding:

  • Private foundation to DAF transfers would no longer be considered qualifying distributions unless the transferred funds were expended by the end of the following taxable year.
  • Private foundations would no longer be permitted to count the payment of compensation to, or reimbursement of the administrative expenses for, certain disqualified persons towards meeting their annual payout requirement.

Here’s a summary of the two proposals: