Two US senators are planning to introduce a bill that will make major changes to the rules governing donor advised funds (DAFs).

The Accelerating Charitable Efforts Act - sponsored by senators Angus King and Charles Grassley - would force operational changes for DAF sponsoring organisations and offer tax incentives to deter donors, sponsoring organisations and private foundations from amassing their funds.

The hope is this will encourage them to distribute them to public charities more quickly.

DAFs have been widely adopted by philanthropists since they were introduced in 2006. Similar to foundations, their fu...