A private foundation requires substantial start-up costs and administrative expenses, such as the yearly filing of a Form 990-PF. A donor advised fund at a Community Foundation requires very little work on the donor’s part—the Community Foundation staff is here to serve you. Moreover, donor advised funds allow donors to take a federal income tax deduction up to 50% of adjusted gross income (AGI) for cash contributions and up to 30% of AGI for appreciated securities; versus 30% of AGI for cash contributions and 20% of AGI for appreciated securities for a private foundation. Donor advised funds also offer the ability to make grants anonymously, if desired.
For a more detailed comparison of a donor advised fund and a private foundation, click here.
Giving & Investing