Items to Consider | Endowed Fund at CFGC (Donor Designated/Donor Advised) | Direct Gift to Single Charity | Private Foundation |
---|---|---|---|
Involvement and Control | You give to a public charity – e.g., a community foundation. You designate a charity to received annual grants; or for a donor advised fund, you recommend grants to qualified nonprofit groups each year, subject to approval by the public charity board of directors. | You give a gift directly to a nonprofit organization. Control is limited to the initial gift decision. | You establish a foundation and appoint a board which controls investments and grantmaking. |
Tax Status | Public Charity. | N/A. | Private Charity. |
Tax Deductions | Up to 50% on cash; Up to 30% on appreciated stock, real estate and/or closely held stock. | Vary depending on the status of the recipient organizations. | Up to 30% on cash; Up to 20% on appreciated stock, real estate and/or closely held stock. |
Grantmaking Support | In the case of a community foundation gift, professional staff is available to help identify and assess grantees, provide input on community needs, and verify nonprofit status. | Your decision is based on your own research and intuition. | You must arrange and support your own grantmaking and monitoring structure. |
Start-up Costs | N/A. | N/A. | At least several thousand dollars for legal and accounting expenses and filing fees. |
Effective Gift Size | $5,000 to establish designated or donor advised funds; $25,000 for scholarships. Funds can be started with any amount and grown over 5 years to the minimum to endow the fund. | Any gift size is appropriate. | Typically millions of dollars. |
Administration Requirements | Administration is provided and an annual fee is charged on the average value of the fund. Community foundation handles tax reporting. | You are responsible for tax reporting and recordkeeping. | Several thousand dollars for legal and accounting expenses and filing fees. Annual 990PF tax form must be filed. |