donor advised fund

(2) Donor advised fund (A) In general Except as provided in subparagraph (B) or (C), the term “donor advised fund” means a fund or account— (i) which is separately identified by reference to contributions of a donor or donors, (ii) which is owned and controlled by a sponsoring organization, and (iii) with respect to which a donor (or any person appointed or designated by such donor) has, or reasonably expects to have, advisory privileges with respect to the distribution or investment of amounts held in such fund or account by reason of the donor’s status as a donor. (B) Exceptions The term “donor advised fund” shall not include any fund or account— (i) which makes distributions only to a single identified organization or governmental entity, or (ii) with respect to which a person described in subparagraph (A)(iii) advises as to which individuals receive grants for travel, study, or other similar purposes, if— (I) such person’s advisory privileges are performed exclusively by such person in the person’s capacity as a member of a committee all of the members of which are appointed by the sponsoring organization, (II) no combination of persons described in subparagraph (A)(iii) (or persons related to such persons) control, directly or indirectly, such committee, and (III) all grants from such fund or account are awarded on an objective and nondiscriminatory basis pursuant to a procedure approved in advance by the board of directors of the sponsoring organization, and such procedure is designed to ensure that all such grants meet the requirements of paragraph (1), (2), or (3) of section 4945(g). (C) Secretarial authority The Secretary may exempt a fund or account not described in subparagraph (B) from treatment as a donor advised fund— (i) if such fund or account is advised by a committee not directly or indirectly controlled by the donor or any person appointed or designated by the donor for the purpose of advising with respect to distributions from such fund (and any related parties), or (ii) if such fund benefits a single identified charitable purpose.


26 USC § 4966(d)(2)

Scoping language

For purposes of this subchapter
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