IRS examines donor-advised funds, non-profits, charities

IRS examines donor-advised funds; charities fear loss of contributions

The Internal Revenue Service has begun looking hard at donor-advised funds, which allow an individual to make a donation, receive an immediate tax deduction and then later "advise" which charities receive distributions. While the IRS is worried that the investors are using the system to create tax-free slush funds, charities are worried that the IRS will hurt donations.

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