National Philanthropic Trust opens a path for donor-advised fund grants to children's Trump Accounts
The first, from a fund at the trust, is to put $250 into the accounts of more than 140,000 Indiana children. Temporary federal rules published Sept. 30 say such contributions further a charity's exempt purposes.
Conshohocken. Donor-advised funds can now pay into Trump Accounts, the federal investment accounts for children, National Philanthropic Trust said on Oct. 12. The Pennsylvania public charity said it and the J.P. Morgan Charitable Giving Fund, a donor-advised fund program at the trust, worked with the Treasury Department at a donor's request to build the pathway.
The first gift comes from the Brad Gerstner Family Foundation, a donor-advised fund in the J.P. Morgan program at the trust. It is to put $250 into the Trump Accounts of Indiana children born in 2023 and 2024 who live in ZIP codes with a median family income of $150,000 or less. The trust said that will reach more than 140,000 children. Mr. Gerstner, the founder and chief executive of Altimeter Capital and an Indiana native, announced the commitment before the trust's release.
What the federal rules say
Trump Accounts were created by the law enacted in July 2025 known as the One Big Beautiful Bill Act, as tax-advantaged investment accounts for children. Besides families, employers and governments, a 501(c)(3) organization can fund them through what the law calls a general funding contribution. The money goes to the Treasury Department, which pays an equal amount into the account of every child in a class defined by objective criteria, such as year of birth and a geographic area. Treasury decides whether to accept each request and signs an acceptance agreement with the donor.
Temporary regulations from Treasury and the Internal Revenue Service, published in the Federal Register on Sept. 30, say a 501(c)(3) organization furthers its exempt purposes by making such a contribution, whether directly or through a donor-advised fund. They say it is neither a grant to an individual under Section 4945 of the tax code nor a distribution to a natural person under Section 4966, and that a donor meeting the rules is treated as having exercised expenditure responsibility. The rules apply to taxable years beginning on or after Jan. 1, 2026, and expire on Sept. 30, 2029.
Other pledges
The regulations point to a pledge of $6.25 billion from the Michael & Susan Dell Foundation for children born between 2016 and 2024 who live in ZIP codes where household median income is below $150,000, and say some individuals have announced similar gifts for smaller regions.
The trust said its staff examined how the law and the program fit the rules governing donor-advised funds and set up a framework for distributions that benefit an eligible class of children. Its release names no other sponsor of donor-advised funds that has done the same.
“We hope that Mr. Gerstner's vision and our blueprint can serve as a model for donors in every state.”
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