To prevent DAF holders from permanently procrastinating, the coalition proposes a 15-year deadline on money in the vehicles. Those who want more time would only get the full tax benefits of their donation when the cash is actually disbursed, rather than upfront.

Vanguard, Fidelity
So far, providers of DAFs, which include Fidelity Investments, Vanguard Group, Charles Schwab Corp. and other large financial firms, have fought off more regulations and even reporting requirements, arguing that new rules could unintentionally discourage charitable giving.

“It’s a great tool that’s not broken, so don’t mess with it,” Schwab Charitable President Kim Laughton said in an interview earlier this year.

There are signs that Congress is growing concerned about the lack of rules on DAFs and other vehicles. The $2.2 trillion CARES Act approved in March created new incentives for charitable giving this year, but barred DAFs from taking advantage of them.

The Initiative to Accelerate Charitable Giving, funded by Arnold and other members, plans to lobby both parties in Congress to adopt their proposal. Other prominent members include Kat Taylor, wife of hedge fund billionaire and former presidential candidate Tom Steyer.

“We have a set of proposals getting more money into the community faster,” Arnold said. “That is an appealing message regardless of one’s partisan leaning.”

Covid Response
Donors have been urged to speed up their giving this year in response to Covid-19 and racial-justice protests. In June, the Ford Foundation, which has an endowment of more than $13 billion, announced a plan to borrow $1 billion and use the money to increase donations.

“The Covid-19 pandemic is deepening inequality and putting a monumental strain on nonprofit organizations that serve marginalized communities,” Ford Foundation President Darren Walker said in a statement signing onto the reform proposal.

Nonprofits worry about being starved for resources at the very time that needs are surging. In the last recession, from 2007 to 2009, total giving dropped almost 12%, according to the Giving USA Foundation.

Some DAF holders are accelerating their donations without being forced to do so. Vanguard Charitable said its DAF holders have released more than $1.3 billion to nonprofits so far in 2020, an increase of more than 20% from the same period last year. Schwab Charitable said grant-making rose 38% through Nov. 23, to more than $3 billion.