If you are looking for a highly personal way of giving without all the guidelines, responsibilities, and costs that come with establishing and maintaining a Private Foundation, then a Community Foundation Donor Advised Fund may be the right charitable vehicle for you.

This chart compares consideration of creating a Private Foundation versus a Donor Advised Fund at the Foundation.

For more information, contact the Foundation at (209)223-2148.

Items to Consider

Private Foundation

Donor Advised Fund
Setup procedure
Must incorporate and apply for IRS tax-exempt approval
Simple agreement.  Can be set up in a day
Initial costs
Setup fees
No setup fees
Ongoing costs
Liability insurance, direct administrative costs
Tax benefits:

  • Cash
  • Appreciated stock
  • Closely held stock
  • Up to 30% of AGI
  • Up to 20% of AGI
  • Deduction limited to basis
  • Up to 50% of AGI
  • Up to 30% of AGI
  • Deduction at fair market value
Excise taxes
Usually 2% of investment income annually
None
Required reporting
Annual 990-PF must be filed by foundation
None  required of the donor.  Fund handles reporting
Grantmaking
Must research and identify agencies/programs to fund
Staff can provide information on opportunities
Required distribution
5% annual distribution required 
None. Donors can make grant recommendations
Privacy
Tax return is public record
Donor may choose to remain anonymous