Professor Grace Allison shared her expertise in tax law with the author of the article, “Get Specific on Donor-Advised Funds, ABA Group Urges” in the August 23 issue of Bloomberg BNA’s Daily Tax Report.

Allison is a Qualified Tax Expert in the Business and Tax section of the Law School's Clinical Programs and chair of the American Bar Association’s Charitable Planning and Organizations Group, Real Property, Trust and Estate Law section.  She is also a former Board member of the New Mexico Community Foundation.

The article summarizes comments submitted to Treasury on August 18, which provided examples of typical community foundation funds which should not be characterized as “donor-advised funds.” 

Donor advised funds are a popular giving vehicle—but are also subject to potential penalty taxes and a host of special rules in Code sections 4966 and 4967.   Allison and Professor Christopher Hoyt at the University of Missouri-Kansas City co-authored the comments.

Community foundations “hold and administer a wide range of funds,” from designated funds to scholarships, Grace Allison, the group's chair, told Bloomberg BNA in an Aug. 23 e-mail. Foundations may not be able to consult tax counsel for each situation, but must understand which funds could be subject to penalties and which require special language in donor acknowledgment letters—and examples can help, she said. Allison is a law professor at the University of New Mexico School of Law.

Community foundations made $6 billion in grants in fiscal year 2015, the letter said, citing a survey from the Foundation Center.