Treasury Reports to Congress on SOs and DAFs

With regard to distribution requirements that would impose a minimum distribution for DAFs and SOs like that imposed on private foundations, the Treasury study found that the average payout rate for Aggregate DAFs in 2006 (the first year the data was available) was 9.3% of assets. The payout rate for other DAFs was similar to or above the average. Compared with data indicating a payout rate for private foundations just about 5%, the Treasury concluded that a distribution requirement is unnecessary as DAFs already distribute above the 5%minimum for private foundations. The Treasury did note however, that a definitive conclusion could not be made with only one year of data so further research will be necessary to determine if a distribution requirement will be necessary in the future.