KHANNA, PINGREE, REED SPONSOR BIPARTISAN BILL TO ENSURE CHARITABLE DONATIONS REACH WORKING CHARITIES

Statement

Representatives Ro Khanna (D-CA), Chellie Pingree (D-ME) and Tom Reed (R-NY) introduced the bipartisan, bicameral Accelerating Charitable Efforts (ACE) Act with Congresswoman Katie Porter (D-CA) to reform federal law to ensure funds donated to donor-advised funds (DAFs) are made available to working charities within a reasonable period of time and provide incentives to speed up donation timelines. The bicameral legislation, introduced in the Senate by Angus King (I-ME) and Chuck Grassley (R-IA), would also update regulations for private foundations to fulfill their intended purpose of ensuring a regular flow of dollars to working charities.

"Charities play an essential role in society and have been a lifeline for many people struggling during the pandemic. However, loopholes in our current laws allow the ultra-wealthy to make contributions and receive immediate tax benefits without any distribution requirements. The result is that money promised to charity can sit unused for years," said Rep. Khanna. "This bill would reform our tax laws to make sure donations are quickly given out to charities, so that more Americans receive the services and support they need."

"The coronavirus pandemic highlighted just how important working charities are to our communities. For countless Mainers and people across the country, charitable organizations are life-changing and lifesaving. Yet, $1 out of every $8 donated to U.S. charities goes to donor-advised funds, giving the wealthy generous tax breaks for their charitable contributions but not ensuring those funds help anyone in need. Our half-century old philanthropy laws must be reformed to correct this fundamental flaw in our current system," said Rep. Pingree. "I'm proud to sponsor this bipartisan legislation with Representative Reed as a companion to Senators King and Grassley's bill to ensure charitable donations effectively and efficiently do what they are intended to: help those in our communities who need it most."

"We will always stand with charitable organizations to make sure they have the resources that they need to better serve our communities. So many people depend on our charities and the help and care they provide that we want to make sure that they have the support that they need," said Rep. Reed. "We were glad to join in this bipartisan effort to help charities receive the funds that they so rightfully deserve. The reforms from this bill will make sure that charities will quickly receive contributions that will go to better the organization and those in the community they are dedicated to serving."

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