I 
117TH CONGRESS 
2D SESSION 
H. R. 6595 
To amend the Internal Revenue Code of 1986 to modify rules relating to 
donor advised funds, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 3, 2022 
Ms. PINGREE (for herself, Mr. REED, Mr. KHANNA, and Ms. PORTER) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
rules relating to donor advised funds, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Accelerating Chari-
table Efforts Act’’ or the ‘‘ACE Act’’. 
SEC. 2. ADDITIONAL RESTRICTIONS ON DEDUCTIONS FOR 
CONTRIBUTIONS TO DONOR ADVISED FUNDS. 
(a) LIMITATION ON DEDUCTION.—Section 170(f) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
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‘‘(19) TIME
FOR
DEDUCTION
OF
CONTRIBU-
TIONS TO DONOR ADVISED FUNDS.— 
‘‘(A) 
NONQUALIFIED
DONOR
ADVISED 
FUNDS.— 
‘‘(i) IN GENERAL.—In the case of a 
contribution to a donor advised fund (as 
defined in section 4966(d)(2)) which is not 
a qualified donor advised fund or a quali-
fied community foundation donor advised 
fund— 
‘‘(I) in the case of any contribu-
tion of property other than cash, no 
deduction shall be allowed under this 
section unless the sponsoring organi-
zation sells such property for cash, 
‘‘(II) no deduction shall be al-
lowed under this section for any con-
tribution before the taxable year that 
includes the date on which the spon-
soring organization makes a quali-
fying distribution of such contribution 
(or the proceeds from the sale of such 
contribution), and 
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‘‘(III) the amount of the deduc-
tion shall be equal to the amount of 
the qualifying distribution. 
‘‘(ii) QUALIFYING
DISTRIBUTION.— 
For purposes of this subparagraph, the 
term ‘qualifying distribution’ means any 
distribution which is not a taxable distribu-
tion (as defined in section 4966(c), deter-
mined without regard to paragraph (2)(C) 
thereof). 
‘‘(iii) ORDERING
RULE.—For pur-
poses of this subparagraph, distributions 
shall be treated as made from contribu-
tions (and any earnings attributable there-
to) on a first-in, first-out basis. 
‘‘(B) NONPUBLICLY
TRADED
ASSETS
OF 
QUALIFIED DONOR ADVISED FUNDS.— 
‘‘(i) IN GENERAL.—In the case of a 
contribution of a non-publicly traded asset 
to a qualified donor advised fund or a 
qualified community foundation donor ad-
vised fund— 
‘‘(I) no deduction shall be al-
lowed under this section for any tax-
able year before the taxable year that 
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includes the date on which the spon-
soring organization sells the asset, 
and 
‘‘(II) the amount of the deduc-
tion allowed under subsection (a) shall 
not exceed the amount of gross pro-
ceeds received from such sale and 
credited to the account or fund identi-
fied with the taxpayer. 
‘‘(ii) 
NON-PUBLICLY
TRADED 
ASSET.—For purposes of this subpara-
graph, the term ‘non-publicly traded asset’ 
means any asset for which (as of the date 
of the contribution) market quotations are 
not readily available on an established se-
curities market. 
‘‘(C) CONTEMPORANEOUS
WRITTEN
AC-
KNOWLEDGEMENT.— 
‘‘(i) IN GENERAL.—In the case of a 
contribution described in subparagraph (A) 
or (B), no deduction shall be allowed under 
subsection (a) for such contribution unless 
the taxpayer substantiates the contribution 
by a contemporaneous written acknowl-
edgement of the contribution by the spon-
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soring organization that meets the require-
ments of clause (ii). 
‘‘(ii) CONTENT
OF
ACKNOWLEDGE-
MENT.—An acknowledgement meets the 
requirements of this subparagraph if it in-
cludes the following information: 
‘‘(I) The name of the donor. 
‘‘(II) In the case of a contribu-
tion described in subparagraph (A)— 
‘‘(aa) if such contribution is 
described 
in 
subparagraph 
(A)(i)(I), a certification that the 
asset was sold for cash and the 
amount of cash received in such 
sale, and 
‘‘(bb) a certification that a 
qualifying distribution has been 
made from such contribution (or 
the proceeds from the sale of 
such contribution), an identifica-
tion of the amount of such quali-
fying distribution, and a state-
ment that the deductible amount 
may not exceed the amount of 
such qualifying distribution. 
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‘‘(III) In the case of a contribu-
tion described in subparagraph (B), a 
certification that the asset was sold 
and the amount of the gross proceeds 
received from such sale and credited 
to the account or fund of the tax-
payer, together with a statement that 
the deductible amount may not exceed 
the amount of the gross proceeds re-
ceived from the sale of the asset and 
credited to the account or fund of the 
taxpayer. 
‘‘(iii) CONTEMPORANEOUS.—For pur-
poses of clause (i), an acknowledgement 
shall be considered to be contemporaneous 
if the sponsoring organization provides it 
within 30 days of— 
‘‘(I) in the case of a contribution 
described in subparagraph (A), the 
date of the qualifying distribution, 
and 
‘‘(II) in the case of a contribu-
tion described in subparagraph (B), 
the date that the gross proceeds from 
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the sale of the asset are credited to 
the account or fund of the taxpayer. 
‘‘(iv) INFORMATION TO SECRETARY.— 
A sponsoring organization required to pro-
vide an acknowledgement under this para-
graph shall provide to the Secretary the in-
formation contained in the acknowledge-
ment. Such information shall be provided 
at such time and in such manner as the 
Secretary may prescribe. 
‘‘(D) QUALIFIED DONOR ADVISED FUND.— 
For purposes of this paragraph, the term 
‘qualified donor advised fund’ means a donor 
advised fund (as defined in section 4966(d)(2)) 
established under an agreement that requires, 
for the duration of such fund, the termination 
of any advisory privilege with respect to any 
contribution (including any earnings thereon) 
made by any donor (or any person appointed or 
designated by a donor) before the last day of 
the 14th taxable year beginning after the tax-
able year in which the contribution was made. 
‘‘(E) QUALIFIED COMMUNITY FOUNDATION 
DONOR ADVISED FUND.—For purposes of this 
paragraph— 
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‘‘(i) IN GENERAL.—The term ‘quali-
fied community foundation donor advised 
fund’ means a donor advised fund (as de-
fined in section 4966(d)(2)) which is 
owned or controlled by a qualified commu-
nity foundation and which meets one or 
more of the requirements of clauses (ii) or 
(iii). 
‘‘(ii) MAXIMUM VALUE OF ADVISORY 
PRIVILEGES.— 
‘‘(I) IN GENERAL.—A donor ad-
vised fund meets the requirements of 
this clause if each individual who has 
advisory privileges with respect to 
such fund does not have advisory 
privileges with respect to 1 or more 
donor advised funds held by the quali-
fied community foundation with an 
aggregate value at any time after the 
date of the enactment of this para-
graph in excess of $1,000,000. 
‘‘(II) 
INFLATION
ADJUST-
MENT.—In the case of any taxable 
year 
beginning 
after 
2021, 
the 
$1,000,000 amount in subclause (I) 
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shall be increased by an amount equal 
to such dollar amount multiplied by 
the cost-of-living adjustment deter-
mined under section 1(f)(3) for the 
calendar year in which the taxable 
year begins, determined by sub-
stituting 
in 
subparagraph 
(A)(ii) 
thereof ‘calendar year 2020’ for ‘cal-
endar year 2016’. If any amount as 
adjusted under the preceding sentence 
is not a multiple of $10,000, such dol-
lar amount shall be rounded to the 
next lowest multiple of $10,000. 
‘‘(iii) MINIMUM
PAYOUT.—A donor 
advised fund meets the requirements of 
this paragraph if the fund is established 
under an agreement that requires that the 
fund make qualifying distributions (as de-
fined in subparagraph (A)(ii)) each cal-
endar year in an amount not less than 5 
percent of the value of the fund (deter-
mined as of the last day of the preceding 
calendar year). 
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‘‘(iv) QUALIFIED
COMMUNITY
FOUN-
DATION.—The term ‘qualified community 
foundation’ means an organization— 
‘‘(I) which is described in section 
501(c)(3), 
‘‘(II) which is organized and op-
erated for the purpose of under-
standing and serving the needs of a 
particular geographic community that 
is no larger than 4 States by engaging 
donors and pooling donations to cre-
ate charitable funds in direct further-
ance of those needs, and 
‘‘(III) which holds substantial as-
sets (but in no case less than 25 per-
cent of the organization’s total assets) 
outside of donor advised funds. 
‘‘(v) SPONSORING
ORGANIZATION.— 
The term ‘sponsoring organization’ has the 
meaning given such term under section 
4966(d)(1).’’. 
(b) OTHER REQUIREMENTS FOR QUALIFIED DONOR 
ADVISED FUNDS.—Section 170(f)(18) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘and’’ at 
the end of subparagraph (A)(ii), by striking the period at 
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