IRS WARNS ON DONOR-ADVISED FUNDSWashington, D.C. - The Internal Revenue Service has issued a guide sheet for organizations that maintain donor-advised funds to help safeguard against abuses. The guide sheet includes a series of questions to establish whether an organization qualifies as a sponsoring organization.

"Donor-advised funds are intended to accomplish charitable purposes, rather than to generate fees from securities trading for investment advisors," said the IRS explanation. "If the arrangement produces too much private benefit to the financial company, the organization does not qualify for exemption."

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