Donor-advised funds have grown steadily over the past several years, in large part as a result of the benefits these funds bestow upon their donors, and the increased marketing of these funds by sponsoring organizations as a way of capturing donations from an expanding upper class. Some of their recent popularity, however, has been for the wrong reasons - a development that has not gone unnoticed by Congress.The Pension Protection Act of 2006 has tried to reign in some perceived abuses. As with most enforcement measures, however, the pendulum can now swing too far the other way and trap some well-meaning donors by surprise. The PPA has several dates that practitioners should watch in advising clients on donor-advised funds: Aug. 17, 2006; Feb. 13, 2007; and Aug. 17, 2007, as well as certain transition dates.

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