Thread by @JenniferFearing

#caleg nerds who appreciate a thorough & thought-provoking cmte analysis that breaks down a wonky issue into why it really matters: I recommend Asm Judiciary's analysis of #AB1712 by @BuffyWicks for your Sun reading pleasure: leginfo.legislature.ca.gov/faces/billAnal… cc @AnandWrites #DAFs👇👇

Selected excerpts from #AB1712 @BuffyWicks analysis: #DAFs: "a donor-advised fund is a form of charitable giving whereby a donor makes a charitable contribution to a fund that is managed by a fund sponsor." /1

"While the assets in the fund are technically no longer controlled by the donor, typically, the fund sponsor permits the donor to direct the sponsor’s charitable giving activities originating with the assets in the fund." #AB1712 /2

"Since the early 1990s, much of the growth in contributions to donor-advised funds has focused on the development of funds sponsored by large financial institutions." #AB1712 /3

"In 2017, donor-advised fund sponsors accounted for six of the top ten largest recipients of charitable giving revenue." #AB1712 /4

"...there is no legal obligation for donations placed into a #DAF to be spent in a specific period of time, despite the donor’s ability to immediately realize the tax benefits of a transfer to a donor-advised fund." #AB1712 /5

"...in the past two decades, the nature of charitable giving in the United States has changed significantly. Since 2000, the number of charitable donations from low and middle-income Americans has decreased significantly." #AB1712 /6

"Notwithstanding the overall decrease in the total number of charitable donors, the total amount of money donated to charity has increased significantly, reaching $410 billion in 2016." #AB1712 /7

"Although many factors, including federal tax reforms and America’s growing income gap, are contributing to this divide, the growth of donor-advised funds correlates with the shifting nature of charitable giving in America." #AB1712 /8

"While there is little doubt that #DAF sponsors have donated billions of dollars in the past decade, the oversight and reporting requirements of existing law do not provide a clear picture of how many millions of dollars have remained unspent..." #AB1712 /9

"...to the detriment of charities and to the benefit of firms managing the funds and charitable donors (who enjoy the immediate tax benefits of their 'giving'." #AB1712 /10

"...fed tax forms do not provide clarity about the behavior of any individual fund or donor advisor...Since grants are only reported in the aggregate, at #DAF sponsoring org level, info on individual funds that do not pay out each year is not available." #AB1712 /11

"It is likely that there are many individual donor-advised funds that [do] not pay out any grants.” #AB1712 /12

"The type of disclosure contemplated by the bill (and feared by the opponents) appears to serve an important public purpose." #AB1712 /13

"While the bill’s threshold for being exempt from reporting may be difficult to achieve, if the donations were given directly to a charity, opposed to a donor-advised fund, than 100 percent of the contribution would be distributed immediately." #AB1712 /14

"...there do appear to be significant gaps in the information reported by #DAF sponsors about the extent to which funds pass from donor to fund sponsor to
charitable organization in a timely manner." #AB1712 /15

"...the bill clearly aims to strike the appropriate balance between transparency, privacy, and administrative
efficiency." #AB1712 /16

"This bill is supported by a coalition of dozens of charitable organizations who contend that the #DAF industry is in significant need of additional oversight." #AB1712 cc: @CalNonprofits /17

#AB1712 supporting #nonprofits write: "The national share of total individual charitable giving contributed to #DAFs increased from 4.4 percent in 2010 to 10.2 percent in 2017, with #DAF sponsoring organizations holding more than $110 billion in charitable assets..." /18

"...#DAF sponsoring organizations affiliated with large
Wall Street financial firms, like Fidelity, Vanguard, and Schwab, are now among the largest recipients of all charitable giving in the United States." #AB1712 /19

"We know that not all DAF-sponsoring orgs or #DAF fund holders are created equally; many are deeply committed to ensuring that charitable $ contributed to #DAFs are moved through to charitable purpose expeditiously. But we lack the ability to assess this." #AB1712 /20

"#AB1712 will help policymakers and members of the public analyze the charitable benefits that DAFs produce & understand how the state might regulate them to deter inappropriate use of #DAFs & maximize public good."
/21

Read the full analysis & see long support list for #AB1712 incl @UnitedWaysCA @CAFoodBanks @calmuseums
@CALCASA @womensfoundca @nextgen @jfsla @CAUSE_NOW @MOWSF @pathpartners @clcv @ResourceGen @SDHungerCo @SacLGBTCenter @calnonprofits leginfo.legislature.ca.gov/faces/billAnal…
@BuffyWicks /end

@UnitedWaysCA @CAFoodBanks @calmuseums @CALCASA @womensfoundca @NextGen @jfsla @CAUSE_NOW @MOWSF @pathpartners @clcv @ResourceGen @SDHungerCo @SacLGBTCenter @CalNonprofits @BuffyWicks @threadreaderapp unroll

@UnitedWaysCA @CAFoodBanks @calmuseums @CALCASA @womensfoundca @NextGen @jfsla @CAUSE_NOW @MOWSF @pathpartners @clcv @ResourceGen @SDHungerCo @SacLGBTCenter @CalNonprofits @BuffyWicks @threadreaderapp These are excerpts of an analysis written by @ndliedtke, on behalf of the California Assembly Judiciary committee. As you can see, (a) he did a lot of careful research and analysis and (b) he's an excellent writer.