Compare Charitable Options

Private Foundation Comparison Chart

Attributes
Outright Gift To Charity
Private Foundations
Communities Foundations
Supporting Organizations
Amount Deductible
Publicly Traded
Securities
Fair Market Value
Fair Market Value
Fair Market Value
Fair Market Value
Other Appreciated
Property
Fair Market Value
Limited to Cost Basis
Fair Market Value
Fair Market Value
Percentage Limitations
Cash Gifts
50% of AGI*
30% of AGI*
50% of AGI*
50% of AGI*
Appreciated Property
30% of AGI*
20% of AGI*
30% of AGI*
30% of AGI*
Other Considerations
Investment Growth
 
Yes
Yes
Yes
Self Dealing Rules
None
Strict Regulation
Foundation Oversight
Foundation Oversight
Excise on Tax on
Investment Income
No Investment Income
2%
None
None
Excess Business
Holdings Limitations
N/A
Yes
Yes
Yes
Donor Control
Full
Legal
Advisory
Minority of Board
Members
Anonymity
Yes
No- Must file detailed
returns on grants,
investments, fees,
salareis, etc.
Yes- Donors and grants
can be private.
Foundation can serve as
a buffer between donor
and grantseekers
Limited
5% Distribution
Requirement
No
Yes
No
No
Incorporation, Tax
exemption, Audit/Tax
returns,
Directors/Officers
insurance, Grants
management,
Investment
management,
Compliance
N/A
Responsible for all
functions; foundations
less than $3 million
have average expenses ranging from 3-5% decreasing as the assets grow larger
Communities
Foundation handles all
administration for a
tiered fee based on fund
size.
Attached to
Communities Foundation
or remains independent;
fees are generally between
private foundations
and communities
foundations
 
Primary
Disadvantages
Timing- Gifts must be
made in same year as
income to maximize
tax benefits
Compliance, Tax
Reporting, Annual
Payout requirements
Advisory vs.
Ownership Control
Minority Control
 
Primary
Advantages
Control, Family
identity
Control, Independence,
Family identity,
Employment of
children
Deductibility , Nonprofit
knowledge, Flexibility,
Permanence, Tax-free
growth, Freedom from
administration
Deductibility, Separate
board, Family identity,
More apparent control
*Adjusted Gross Income
 
 
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315 N. Broadway, Suite 210 • Tyler, Texas
903-533-0208 • 1-866-533-ETCF