| Attributes |
Private Foundations |
Community Foundations |
Supporting Organizations |
| Amount Deductible |
| Publicly Traded Securities |
FMV |
FMV |
FMV |
| Other Appreciated Property |
Limited to Cost Basis |
FMV |
FMV |
| Percentage Limitations |
| Cash Gifts |
30% of AGI |
50% of AGI |
50% of AGI |
| Appreciated Property |
20% of AGI |
30% of AGI |
30% of AGI |
| Other Considerations |
| Excise Tax on Investment Income |
2% |
None |
None |
| Excess Business Holdings Limitations |
Yes |
No |
No |
| Donor Control |
Legal |
Advisory |
Minority of Board Members |
| Anonymity |
No – Must file detailed returns on grants, investments, fees, salaries, etc. |
Yes – Donors and grants can be private. Community Foundation can serve as a buffer between donor and grantseekers. |
Limited |
| 5% Distribution Requirement |
Yes |
No |
No |
| Incorporation, Tax Exemption, Audit/Tax Returns, Directors/Officers Insurance, Grants Management, Investment Management, Compliance |
Responsible for all functions; foundations less than $3 million have expenses ranging from 3-5%, decreasing as the assets grow larger |
Community Foundation handles all administration for a tiered fee based on fund size. Fees range from .65-1% (Investment fees are assessed separately and average around 85 basis points) |
Attached to Community Foundation or remains independent; fees are generally between private foundations and community foundations |
| Primary Advantages |
Control
Independence
Family Identity
Employment of Children |
Deductibility
Nonprofit Knowledge
Flexibility
Permanence
Freedom from Care |
Deductibility
Separate Board
Family Identity
More Apparent Control |