Sen. Charles Grassley, an Iowa Republican and Senate Judiciary Committee chairman who has been a vocal advocate of nonprofit transparency, recently spoke with The Chronicle of Philanthropy about mandatory payments or deadlines for donor-advised funds — which he fears could have a chilling effect on charitable giving — and guidelines for nonprofit executive pay.
From Rebecca Koenig's story:
Mr. Grassley, who referred to donor-advised funds in passing as "kind of a piggy bank for wealthy people," said that changes would make more sense as part of a broader tax-overhaul effort than as a separate issue.
In 2014, draft legislation circulated in Congress that would have required the controversial funds to distribute assets to nonprofits within five years. Some critics of donor-advised funds endorse such requirements because they worry about money gathering dust — and providing fees to fund managers — instead of supporting charitable work.
More pressing than donor-advised funds, the senator said, is the issue of nonprofit executive pay. The IRS can fine nonprofits for paying excessive salaries, although it rarely does, and there are no precise guidelines for determining the limits on appropriate salaries.