The Pension Protection Act of 2006 (PPA) created new requirements and restrictions on grants from donor advised funds. While the Internal Revenue Service (IRS) is expected to issue guidance at some point in the future clarifying some ambiguities in the law, community foundations should act now to review and update policies to ensure that grant processing procedures are in place to properly consider grant recommendations and avoid potential IRS penalty taxes. Such a review and update of policies is necessary even if the community foundation only permits grants to Section 501(c)(3) organizations. As is detailed below, checking Section 501(c)(3) status alone is no longer sufficient to comply with the law.