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Items to Consider Community Foundation Donor Advised Fund Private Foundation
Donor Involvement Donor recommends grants to qualified nonprofit groups. Grants are approved by community foundation board of directors. Donor appoints board which controls investments and grantmaking
Tax Status Public charity Private charity
Income Deductions for Gifts of Cash Up to 50% of adjusted gross income. Up to 30% of adjusted gross income.
Income Deductions for Gifts of Appreciated Stock Fair market value up to 30% of adjusted gross income. Fair market value up to 20% of adjusted gross income.
Income Deductions for Gifts of Real Estate and Closely Held Stock Fair market value up to 30% of adjusted gross income. Cost basis up to 30% of adjusted gross income.
Grantmaking Support Professional staff is available to help identify and assess grantees, provide input on community needs, and verify nonprofit status of groups. Donors must arrange and support their own grantmaking and monitoring structure.
Initial Start-Up Costs None. Several thousand dollars for legal and accounting expenses and filing fees.
Initial Minimum Contribution Thousands of dollars. Typically millions of dollars.
Administrative Requirements: Ongoing Costs Pooled administration; annual fee. Several thousand dollars for legal and accounting expenses and filing fees.
Administrative Requirements: Reporting Community foundation handles reporting. Annual 990 tax form must be filed.
Distribution Requitement None. 5% minimum annual payout.
Excise Tax None. 1-2% excise tax on net annual income.
Anonymity Donor may make anonymous grants Giving record is public information.