Compare Private Foundation, Supporting Organization, and Donor Advised Fund

For more information contact

Carol Hawk
Director of Development
Stark Community Foundation
400 Market Avenue North, Suite 200
Canton, Ohio 44702
Phone: 330-454-3426
Fax: 330-454-5855
chawk@starkcf.org

	Private Foundation	Supporting Organization (to Stark Community Foundation)*	Donor-Advised Fund (at Stark Community Foundation)
Control	Donor retains maximum control of board, investments, and grantmaking	Donor names a minority of the board, which controls investments and grantmaking	Donor provides advice to Foundation board on grants. Foundation controls investments.
Tax Deductibility	Property: 20% AGI Cash: 30% AGI	Property: 30% AGI Cash: 50% AGI	Property: 30% AGI Cash: 50% AGI
Excise Taxes	Excise taxes (Section 4940-4945) Usually 2% on net investment income	Exempt from excise tax	Exempt from excise tax
Investment Flexibility	Must divest excess business holdings (closely-held stock) within five years or pay excise tax	Can hold assets that do not conform to Community Foundation's investment policy (e.g. 100% of "for profit" subsidiary)	Foundation sets investment policy, works with both trustee banks and outside investors to carry out policy.
Continuity	Can continue to future generations	Can continue to future generations	Usually donor may name one generation of successor advisor(s) to the fund
Administration	Burdensome administration: Accounting Record keeping Tax return (form 990-PF)	Less burdensome: Board minutes Tax return (simple form 990) Three types: 1) controlled by (most common) 2) operated in connection with 3) controlled in connection with (most rare)	Simple Can establish in one day
Staff	Can employ family members	Can employ family members Access to Community Foundation staff (for investment, grantmaking expertise)	Access to Community Foundation staff (for grantmaking expertise)
Start-up Costs	Legal and accounting fees	Less than a private foundation	None
Can other people contribute & receive a tax deduction?	No	Yes	Yes
Converting between entities	Can convert to a supporting organization or donor-advised fund	Can convert to or from a donor-advised fund, or from a private foundation	Can convert to or from a supporting organization, or from a private foundation

This comparison is general and not intended to serve as legal advice.

* Any public charity may serve in this capacity

What makes Stark Community Foundation unique?