COMPARING GIVING OPTIONS
A guide to personalizing your philanthropy
COMPARING GIVING OPTIONS
Major options for giving entail varying costs and benefits. Your professional advisor can help you review options for custom giving solutions – based on your timing preferences, your giving focus and other variables.
Startup Costs
Private Foundation
Typically $5,000 or more for legal and accounting expenses and filing fees.
Donor Advised Fund
None
Startup Time
Private Foundation
Typically months
Donor Advised Fund
Immediate
Administrative Requirements
Private Foundation
Donor is responsible for all administration including tax reporting, IRS compliance, investment of assets, grant research and record keeping, including board minutes.
Donor Advised Fund
Donor has no administration requirements. The Community Foundation of North Florida handles all investment, reporting, filings, tax reporting, IRS compliance and other administrative details.
IRS Reporting
Private Foundation
Form 990-PF must be filed annually
Donor Advised Fund
None
Distribution Requirement
Private Foundation
5% minimum annual payout required regardless of investment returns
Donor Advised Fund
None required
Charitable Tax Deductions
Private Foundation
Up to 30% of AGI on cash, up to 20% on appreciated stock held more than 1 year and long-term capital gain property usually deductible at cost basis
Donor Advised Fund
Up to 60% of AGI on cash, up to 30% on appreciated stock held more than 1 year and long-term capital gain property usually deductible at FMV
Excise Tax
Private Foundation
Ordinarily 1-2% of annual net investment income
Donor Advised Fund
None
Operating Costs & Fees
Private Foundation
Typically in the range of 2%-4%
Donor Advised Fund
Generally 1.5% or less, plus investment fees
Anonymity & Recognition
Private Foundation
All private foundation records are public information including grants, trustee names, expenses, etc., therefore no activity is anonymous.
Donor Advised Fund
Donor may choose to make anonymous grants or receive recognition.
Effective Gift Size
Private Foundation
Typically $10 million or more
Donor Advised Fund
Already in place
Grantmaking Support
Private Foundation
Responsible for grantmaking and monitoring structure.
Donor Advised Fund
Professional staff is available to help identify and assess grantees, provide input on community needs, verify nonprofit status and comply with IRS regulations.