Compare Donor Advised Funds - Private Foundations

  

  CCF Donor-Advised Fund Commercial Donor-Advised Fund Private Foundation
Donor Control of Grantmaking
and Investments		 Donor recommends grants to qualified nonprofit groups. Depending on the size of the fund, donors may choose from CCf's investment pools. Donor recommends grants to qualified nonprofit groups. Donors may choose from among firm's investment pools. In some cases, donor's investment advisor can manage assets.. Donor appoints board, which controls investments and grantmaking.
Tax Status Covered under CCF's public charity status. Covered under nonprofit status of corporate entity's charitable subsidiary. Applies to IRS for private foundation tax-exempt status.
Income Tax Deductions for Gifts of: Cash Up to 50% of adjusted gross income. Up to 50% of adjusted gross income. Up to 30% of adjusted gross income.
Publicly Traded Securities Fair market value up to 30% of adjusted gross income. Fair market value up to 30% of adjusted gross income. Fair market value up to 20% of adjusted gross income.
Real Estate, Closely Held Securities, and Other Special Categories Fair market value up to 30% of adjusted gross income. Fair market value up to 30% of adjusted gross income. Usually real estate and closely held securities are not accepted. Deductible at cost basis up to 20% of adjusted gross income.
Grantmaking Advice and Follow-up Professional staff is available to help identify and assess grantees, provide input on community needs, and ensure recipients are qualified and effective. Varies. Most do not offer personalized advice on grantee selection. Foundation must arrange and support it's own grantmaking and monitoring activities.
Distributions to Individuals Not allowed, ecept in specific instances (e.g., qualified scholarships). Typically nor permitted. Not allowed.
International Grants Allowed if made through a US nonprofit. Usually not allowed. Allowed.
Distribution Requirements None. Varies. Some require a minimum of 5% of the fund's net assets on a five-year rolling basis. At least 5% of net asset value annually. Penalty tax is 30% of undistributed amount.
Start-Up Considerations: Costs None. None. Several thousand dollars for legal and accounting expenses and filing fees.
Time Frame Immediate. Immediate. Several months.
Minimum Contribution $10,000 Varies, usually $5,000 - $25,000 None, but smaller private foundations may not be cost-effective.
Annual Administrative Requirements: Fees 0.5% of assets for administration fees (minimum $500), plus investment expenses ranging from 0 to 0.75%. Based on size of fund, usually starting at 0.60% of assests and declining for larger funds. Investment expenses range from 0.10% to 1.25% Grantmaking, administrative, and investment support are staffed and financed independently.
Taxes None. None. Excise tax of up to 2% of net investment income, including net capital gains.
Reporting None. None. Annual tax return, including detailed financial schedules.
Privacy Donors may remain anonymous. Donors may remain anonymous. Donors may remain anonymous, but IRS Form 990-PF lists officers, directors, and trustees.