Private Foundation Comparison

PRIVATE FOUNDATION COMPARISON

As a public charity, the Foundation benefits from maximum tax deductions and other advantages not available to private foundations. Consequently, our benefits extend to each Donor with a fund at the Foundation. Upon making a gift, each Donor receives an immediate and maximum allowable tax deduction. This deduction benefits the Donor, and simultaneously aids the community. Proper tax planning increases the amount of money available to address community needs.

When they’ve made the decision to give, many philanthropists consider establishing a private foundation in their family or business name.

Upon further research, they often realize that a fund through ETCF, like a private foundation, can offer:

  • Philanthropic Impact
  • Community Recognition
  • A number of ways for family members to be involved in philanthropy.

However, because ETCF is a public charity as described in Section 501(c)(3) of the IRS Code, we also offer many advantages not available to private foundations. With an ETCF Fund:

  • You can make charitable gifts to the fund in the year that best suits your tax planning needs, and recommend grants from the fund to particular charities over many years.
  • Your contributions are tax-deductible with minimal limitations, which are equal to direct gifts to charity, instead of more restrictive limitations placed on private foundations.
  • ETCF files an annual tax return for the combined assets of all Foundation funds, eliminating the cost and burden of a private foundation tax return.
  • ETCF saves you from many of the onerous rules and regulations on grant-making and reporting that accompany giving through a private foundation.

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